RZM Murowa Ordered to Pay US$452,218 to Catering Company in Contract Dispute
RioZim‘s diamond unit RZM Murowa has been ordered to pay US$452,218.62 to local catering firm Introwise Catering (Pvt) Ltd following a contractual dispute over unpaid invoices for services rendered since 2015.
Justice Joseph Chilimbe handed down the ruling at the Harare High Court after Introwise sought legal redress, arguing that the mining giant failed to honour its payment obligations as stipulated in their agreement.
In a contract signed on March 1, 2015, Introwise was engaged to provide catering services to RZM Murowa at its mine and Harare sites. The contract was structured on 12-month terms, with the final extension governed by Addendum Number 6.
Under the agreement:
- Introwise was entitled to a management fee of US$10,000 per month.
- The company could submit rates for personnel and food items procured, with an 8% markup.
- All invoices explicitly stated they were in USD, aligning with the contract’s payment terms.
Despite fulfilling its contractual obligations, including providing food, beverages, and other services, Introwise claimed RZM Murowa failed to settle the final bill after terminating the contract on August 8, 2023.
Introwise argued that RZM Murowa was legally obligated to pay in USD, consistent with the historical terms of their agreement. The company emphasized that Murowa had consistently honored previous invoices in USD and was therefore bound to continue doing so.
On the other hand, RZM Murowa contended that changes in Zimbabwe’s monetary regulations since 2019, particularly regarding foreign and local currency obligations, necessitated payment in local currency. Advocate Taona Nyamakura, representing RZM Murowa, argued that the legal framework allowed debts to be settled in Zimbabwean dollars unless explicitly exempted.
After reviewing submissions, Justice Chilimbe ruled in favor of Introwise, ordering RZM Murowa to pay US$452,218.62. The judgment also allowed the mining company to settle the amount in local currency at the official exchange rate on the payment date.
“The resultant questions over legal rights and commercial priorities require a sober-minded if not patient approach to address. I find neither mischief nor frivolity in either side’s case,” Justice Chilimbe noted.
Each party was ordered to bear its own legal costs, reflecting the partial success of both sides’ arguments.
The case highlights the complexities arising from Zimbabwe’s evolving monetary policies and their impact on longstanding contracts. For businesses, the judgment underscores the importance of clarity in contract terms and adaptability to regulatory changes.
RZM Murowa is yet to comment on the ruling or indicate whether it plans to appeal.