A local supplier has won a case against the Harare City
Council which wanted to pay in local currency when the quote was in foreign
currency.
The municipality was arguing that it should settle the
US$468 000 using a 1:1 United States to local currency conversion rate. Bitumen
products supplier Furbank Trading was, however, granted an arbitral award after
challenging the local authority’s plans to settle the bill in local currency.
Newsday reports that the municipality had filed a court
application for the setting aside of an arbitral award rendered by Thomas
Alexander Taylor in favour of Furbank Trading.
Furbank Trading had submitted a claim for arbitration
stating that sometime in July 2018, it was awarded a tender for the supply and
delivery of bitumen products for emergency road rehabilitation.
A contract was subsequently executed between the parties
for the supply and delivery of bitumen products.
City of Harare ordered bitumen products and Furbank
supplied the same for US$468 855.
In May 2019, Furbank presented an invoice to council.
City of Harare acknowledged its indebtedness to Furbank
through a memorandum dated May 31, 2019, but the debt was not settled,
resulting in the matter being referred to arbitration.
