Staff Reporter
Incarcerated Harare-based businessman Moses Mpofu‘s company Juluka Projects and Plant Hire is claiming US$1.5 million for the installation of streetlights from the Harare City Council (HCC).
The company entered a contract with HCC to install streetlights with a price of US$1 745 570.21 (in May 2024) and the project reached 65 percent completion before HCC inexplicably suspended it citing ‘legal challenges’.
Now several months after their contract with HCC was suspended, Juluka, are seeking immediate payment of their dues, giving the city fathers until November 15 to pay up.
“We refer to the above matter and come to you at the behest of our client named thereon. Please note only our professional interest in the matter. Our client has instructed as follows. Sometime in or about the month of May 2024, you entered into a contract, “the contract” or “the agreement”, with our client in terms of which it, our client, was to install, and did install, street lights along various roads within the city. The contract price was, or is, the sum of USD1 745 570.21, (One million seven hundred and forty- five thousand five hundred and seventy United States dollars and twenty one cents),” said Nyahuma Law firm in a letter dated November 11.
“So soon after the signing of the contract, our client busied itself performing the works up to the 26th of July 2024 when you purportedly, unilaterally and abruptly suspended the agreement through your letter of that date. In your said letter, you cited that the agreement was being suspended “…owing to the ongoing legal proceedings with respect to the contract…
” Our client was, and remains, shocked by your move to suspend the contract for the reason given as it is not aware of any legal proceedings relative to the contract. In this last regard, we ask that you let us know the nature of the legal proceedings referred to in your letter. This is vitally important.
“The aforesaid notwithstanding, our client instructs that as at the date of your purported suspension of the contract, it had performed approximately 65% of the works and had duly invoiced you the sum of USD 1 107 420.42 (One million one hundred and seven thousand four hundred and twenty United States dollars and forty-two cents), being the value of the completed works up to that date. We have cared to affix hereto for ease of reference, a copy of our client’s invoice in question.
“Even though you were invoiced as aforesaid, you failed, refused and or neglected to pay the said amount which is unserious and a breach of your obligation under the contract. This being the case, our instructions are to demand, as we now do, the immediate release to our client, of the said invoiced amount immediately upon your receipt of this letter or at the very latest, by Friday, the 15th day of November 2024. If you do not abide thereby, then we have further firm instructions to approach the appropriate court of law for redress and the costs to be incurred by our client in that effort shall obviously be sought from yourselves at a rate that is punitive in nature. In our respectful view, our client’s claim is clear and unassailable when looked at from any angle. You have absolutely no reason to retain the funds.”
Juluka is also pushing for the council to lift its suspension so that the streetlights project can resume.