Supplier Sues ZNFU For Non Payment Of K180,000

ETG Zambia Limited, a farm input supplier, has sued the Zambia National Farmers Union (ZNFU) demanding payment of over K180,000 which the union has allegedly not paid for the farm inputs supplied to it. According to a statement of claim filed in the Lusaka High Court, ETG Zambia Limited entered into an agreement with ZNFU to supply assorted farm inputs to the union during the 2015-2016 season.

The terms and conditions of the agreement were that all outstanding amounts would attract interest at a rate of two percent per month until the date of final settlement. “Pursuant to the terms of the agreement, ETG supplied assorted agricultural inputs for sale in the 2015-2016 farming season,” the statement reads.

During the time ETG Zambia Limited supplied the inputs, ZNFU owed the company an outstanding balance of K116,575 which accrued K65,282 interest for a period of 28 months. But ZNFU has breached the contract by allegedly failing to pay for the delivered inputs and has also neglected and failed to pay the agreed interest. “ETG sold the inputs to ZNFU under the Cosmic Relief Scheme for cash but has omitted and neglected to remit or deposit the proceeds into the ETG bank account, contrary to the agreement,” the claim states.

On September 18 this year, ETG instructed its advocates to write a formal letter to ZNFU demanding payment of an outstanding amount of K116,575 and K65,282 in accrued interest. But to date, ZNFU has not paid the outstanding balance and the interest. ETG says it has suffered loss and damages. It is now demanding an order for payment of K116,575, the value of the agricultural inputs supplied to ZNFU upon its request through the Comic Relief Scheme. ETG is also claiming damages for breach of contract