The Food Reserve Agency (FRA) has launched a counterclaim against Imaber General Trading Limited, accusing the company of breaching contracts amid an ongoing legal dispute.
Imaber General Trading Limited initially sued FRA in the Lusaka High Court, alleging that the agency failed to uphold four contracts and owes the company over K4 million.
According to the plaintiff’s claim, Imaber entered into six contracts with FRA between May 3 and July 12, 2022, to supply Grade ‘A’ Zambian white maize for export.
The company alleged that FRA did not deliver 811.13 metric tons of maize worth K3,244,520, despite full payment.
It also claims FRA failed to provide 6,899.43 metric tons as per an offer letter dated July 11, 2022.
Imaber is seeking damages for breach of contract, as well as compensation for expenses such as transportation (K153,700), demurrage charges (K700,000), and arbitration costs (K150,000).
It is also demanding interest, enforcement of contract terms, and delivery of 6,000 metric tons of maize under contract number six.
The company further alleged that FRA interfered with arbitration and instigated investigations against its directors, leading to the closure of its accounts.
However, FRA has denied the allegations, arguing that all contractual obligations were fulfilled.
In its defense, the agency asserted that Imaber collected its full maize consignment under duly signed Goods Issued Notes (GINs) and that any disputes were resolved through appropriate channels.
FRA has accused Imaber and its representatives of fraudulent activities, including misrepresenting maize quantities and quality, falsifying records, and unauthorized collection.
The agency claimed the company breached contract terms by failing to provide accurate reports and acting in bad faith.
As part of its counterclaim, FRA is seeking damages for breach of contracts four and five, interest, and any further relief the court deems appropriate.
