Pittscon demands K100 million from govt

Pittscon demands K100 million from govt

By Esther Chisola 

PITTSCON Zambia Limited has sued the Attorney General in the Lusaka High Court demanding damages for breach of contract and immediate payment of K99,364,171.70.

The firm was awarded various contracts under the Ministry of Local Government and Rural Development which government breached in honouring payments.

It has cited the Attorney General’s Chambers as the respondent and also wants interest on the above amount at the current commercial bank lending rate from the date the payment fell due to the date of full payment.

According to a statement of claim filed in the High Court, Pittscon Zambia Limited has submitted that between the years 2017 and 2021, it was awarded various contracts by the Ministry of Local Government and Rural Development.

The company states that the ministry awarded it four contracts, among them a contract for the periodic maintenance of selected feeder roads in Chibombo District of Central Province under contract number MLG/W/002/2018 valued at K67,121,543.84.

“Contract for the rehabilitation of 83km Ndabale Chibale [Kaseba Junction] feeder road in Serenje District of Central Province under contract no. MLG/W/0027 valued at K91,295,870. Contract for the periodic maintenance of selected feeder roads in Chibombo District in Central Province [55km of M20 to Kabangalala to Kabimba School to Kapalu mission] under contract no MLG/W/77/26/2020 valued at K70,188,140.66,” reads the statement of claim.

“Contract for the periodic maintenance of selected feeder roads in Kapiri Mposhi District (28.1KM Masansa ) under contract no.MLG/W/29/1/2020 valued at K35,858,960.17.”

Pittscon Zambia Limited submits that it executed the contract and under express term of the contracts, the employer should have paid within 56 days of the date of each certification.

“The plaintiff executed the works under the contracts to the satisfaction of the Ministry of Local Government and Rural Development and was recognised as one of the best performing local contractors. The plaintiff duly submitted to the employer various interim payment certificates for payment to be effected with the last one being on the August 3,2021,” it states.

“As at August 21st ,2021, the balance outstanding on the interim payment certificates due for payment stood at K33,938,850.04. It was an express term of the contracts that late payment will attract simple interest at the prevailing Bank of Zambia [BoZ] lending rate,” Pittscon Zambia Limited submits in its statement of claim.

It also submits that by December 20, 2024, the amount outstanding had accumulated simple interest calculated at Bank of Zambia lending rate in the sum of K22,908,723.80.

“The payment of K33,938,850.04 that became due on August 21,2021 has lost K42,516,597.90 in value and now is K76,455,447.94 in today’s terms due to effects of average year on year inflation from 2021 to date,” it states.

“The plaintiff had made repeated demands for payment, but the defendant has not honoured its contractual obligations. As a result of the defendant’s failure to pay, the plaintiff has suffered financial loss and inconvenience,” the claim states.