The Food Reserve Agency (FRA) has been sued in the Lusaka High Court by Imaber General Trading Limited, which is seeking over K4 million in compensation following a dispute over maize supply contracts.
Imaber General Trading, a Lusaka West-based company, alleges that it entered into six contracts with FRA between May 3 and July 12, 2022.
Under these agreements, FRA was to supply Grade ‘A’ Zambian white maize for export, for which the plaintiff had made payments.
Imaber General claims it paid FRA a total of K8 million in installments of K6.8 million on June 30 and K1.2 million on July 30, 2022.
The terms of the contracts stipulated that FRA would make the maize available for collection within seven days of payment at its storage facilities in Northern and Muchinga provinces.
However, the company alleges that FRA breached four of the six contracts by failing to supply the agreed quantities of maize.
Specifically, Imaber General is seeking compensation of K3,244,520 for 811.13 metric tons of maize that was fully paid for but not delivered; K153,700 in transportation, accommodation, and upkeep costs incurred in Mbala and Kasama; K700,000 in demurrage charges due to delays in maize collection; and K150,000 in arbitration costs.
The company is also seeking damages for the breach of four contracts (Nos. 1, 4, 5, and 6), specific performance requiring FRA to deliver 6,000 metric tons of maize under contract No. 6, and interest on outstanding amounts.
The statement of claim further alleges that despite attempts to resolve the dispute, including arbitration, FRA failed to take the necessary steps, leading to additional financial losses for the plaintiff.
Imaber General also claims that its directors faced unwarranted investigations by the Drug Enforcement Commission (DEC), which resulted in the temporary closure of the company’s accounts.
