Mathew Masinge, Court Reporter
Harare City Council’s privately-owned company, City Parking has been dragged to court by ZEMQOS Incorporated accused of fraudulently benefiting from an arbitration award.
According to the papers, ZEMQOS and City Parking entered into an commercial agreement in 2015 of which the former was to supply installation for parking business in Accra Ghana and payment was to be made in foreign currency through the Reserve Bank of Zimbabwe.
City Parking went on to make a few transactions in foreign currency before reverting to paying in local currency.
It is the shift that caused parties to seek a resolution through arbitration according to the contract.
After the arbitration was awarded, ZEMQOS claim they discovered a hidden fraud, bias and direct breach of principles of natural justice.
Now ZEMQOS have applied for review of the arbitration proceedings arguing that the chairman of the Commercial Arbitration Centre Muchadeyi Masunda (who also runs City Parking) handpicked his former business partner, Arbitrator P.C Llyod N.O.
Muchadeyi Masunda and Arbitrator P.C Llyod N.O are cited as respondents.
“The Arbitration proceedings were biased as the Chariman of the Commercial Arbitration Centre Mr Muchadeyi Masunda who was ceased with appointing an Arbitrator in terms of clause (9) of the agreement between the Applicant and the 1st Respondent (City Parking) handpicked his former business partner with whom he was in private legal practice to be the arbitrator without disclosing that he was the board chairman of Harare Sunshine Holdings (Pvt) Ltd.
“The 1st Respondent (City Parking) did not disclose to the applicant (ZEMQOS) that it is being run by Harare Sunshine Holdings whose board is chaired by 2nd Respondent (Muchadeyi Masunda) who apparently was to choose the arbiter between the parties to the dispute.
“Instead of disclosing, it preferred to have the matter referred to him in direct misrepresentation to the first applicant that this was a neater way of avoiding bias, when in reality it was the means by which it was facilitated,” said ZEMQOS director, Zvarevashe Masvingise.
Masvingise said the trio corruptly dealt with the issues at any rate and applies for an order setting the resultant award aside.
The matter is still pending.