By A Correspondent- Agriculture minister Anxious Masuka has been sued for failing to pay for farming inputs.
Masuka is failed to pay US$83 937.52 worth of tobacco farming inputs they supplied him by Tian Ze Tobacco Company (Private) Limited.
According to Harare High Court summons served, the inputs were supplied in terms of the Tobacco Farming Contract the two parties agreed upon.
The terms of the contract were such that Tian Ze was supposed to supply United States denominated farming inputs to Masuka.
This was after the company had obtained Exchange control approval from the Reserve Bank of Zimbabwe to transact in United States dollars.
“Payment of USD$ 83 937.52 or its equivalent ZWL$ at the prevailing interbank rate due and owing to Plaintiff (Tian Ze) for USD$ denominated tobacco farming inputs supplied to Defendant (Masuka) in terms of the tobacco Farming Contract and acknowledgement of the date….”
In turn Masuka was supposed to produce Virginia tobacco and sell it to Tian Ze after curing it.
However, Masuka breached the contract by failing to “produce and or sell tobacco and pay Tian Ze in terms of the contract”.
The papers state that on January 20, 2017 Masuka acknowledged his indebtedness and made an undertaking to pay the debt by October 2019 as agreed when the contract was signed.
According to Tian Ze he has opted to pay in Zimbabwe dollars.
“Defendant has been making ridiculously low ZWL$ payments which were being rated to the prevailing interbank rate for that day by Plaintiff,” reads the papers.
-Zim Morning Post