SA firm sues Air Zim

HARARE - State-owned Air Zimbabwe (Private) Limited (Air Zimbabwe) has been dragged before the High Court by a South African firm demanding $54 000 following a botched business deal.

The court heard that Air Zimbabwe appointed Track Associates (Private) Limited in April 2013 and mandated it to be its agent and get paid for the services.

“It was a term of the agreement that on deal closing, Air Zimbabwe (Private) Limited would pay plaintiff (Track Aviation Associates (Private) Limited) a success-based finder’s fee of $2 850 per month until full term or termination date.

“Pursuant to its mandate in terms of the agency agreement, plaintiff sought, brokered and initiated two lease agreements between defendant (Air Zimbabwe) and Solenta Aviation.

“The first lease agreement commenced on May 1, 2013 and terminated on March 14, 2014.

“The second ran from July 1, 2013 and terminated on February 28, 2014,” the court heard.

The South African firm told the court that Air Zimbabwe neglected or failed to pay the finder’s fees in terms of the agreement.

“Defendant has ignored plaintiff’s several demands for payment, the last of which was delivered on October 2, 2015.

“The total amount due to plaintiff in terms of the agreement is $54 150,” the court heard.

The firm is demanding payment of the money within seven days of a court order and interest at the prescribed rate from March 14 last year to the date of full payment.

The national airliner is still to respond to the court summons.

Air Zimbabwe has been posting staggering losses for years due to mismanagement, high operating costs, old equipment and aircraft that are no longer profitable to fly.

Comments (2)

It surely never rains but pours for this airline.Why make promises when you know you cannot fulfil them. How many creditors does this airline have? It looks like they owe everyone something from salaries, service providers you name it.The list is endless

Never Rains - 3 December 2015

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