Chitungwiza loses out on US2M revenue

24 May, 2022 - 00:05 0 Views
Chitungwiza loses out on US2M revenue A Chitungwiza Municipality front-end loader

H-Metro

Municipality hired out three bulldozers, a grader, a front-end loader in 2007, none of the equipment has been returned

Mathew Masinge

CHITUNGWIZA Municipality lost three bulldozers, a front-end loader and a grader to a local land developer.

If the land developer was paying for the services of the equipment, the municipality would have made about US$2 million in hire fees.

In summons filed at the High Court by the municipality, it claims it entered into a contract for equipment hire, sometime in June 2007, with Delatfin Investments (Pvt) Ltd.

The contract for hire was meant to last for one month (from June 1 to June 31, 2007) but despite demand, the municipality has failed to reclaim the equipment to date.

Delatfin Investments were supposed to pay hourly rates of $331 655, $333 593, $167 520 and $610 593 in 2007 and 2008 and US$30 since February 2009.

Now, the municipality wants the court to compel the land developer to return the equipment or pay the market value prescribed under valuation certificate of a civil engineer of, at least, 10 years’ experience.

“On the 1st of June 2007, Delatfin took possession of the above items.

“It still continues to retain that possession.

“Upon expiry of the contractual period of hire, and despite demand, Delatfin refused to return the entirety of the above equipment…pay rent for its continued use of the equipment to this date.

“Payment of the sum of US$2 052 000 calculated in terms of the rates schedule attached hereto being 76 months’ rent arrears, for the period between the 1st of March 2009 and 30 June 2015,” reads the summons.

In his findings, Justice Jacob Manzunzu ordered the return of the equipment forthwith.

“Delatfin Investments be and is hereby ordered to return to Chitungwiza Municipality forthwith the following equipment – front end loader, grader champion, bulldozer D4, bulldozer D4 and bulldozer slewa D6.

“In the event that Delatfin Investments fails to comply, the company is ordered to pay the municipality an equivalent market value, failing which the value shall be assessed by the court upon application by either party,” ruled the judge.

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