By Mercy Matonga:
The government is embroiled in a legal fight with construction company Fargo over a claim of K31 billion, with Attorney General (AG) Thabo Chakaka Nyirenda disputing the figure.
Fargo, through private practice lawyer Frank Mbeta, is claiming the sum from a 2011 contract between State-owned Blantyre Water Board (BWB) and Fargo, which the company says the government was yet to fully honour by failing to pay an outstanding balance of K6 billion.
The company is claiming the extra K24 billion as accumulated interest over the period since the contract came to a close in 2014.
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It also wants legal fees.
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On the other hand, the AG’s office is claiming that the claim that the government owed the construction company K6 billion is not false but that the company was actually overpaid even before the contract expired.
According to court documents, the matter originates from two contracts dated October 10 2011 and October 21 2011 to upgrade the Zomba and Mangochi water supply schemes for original contract sums of K836, 381,075 and K516, 919,190, respectively.
Thabo Nyirenda confirmed both the claim by Fargo and also the counterclaim by his office.
“We are contesting both the claim for K31 billion and the transfer of the case to the judge. The Assistant Registrar has requisite competence to handle the assessment. This is a claim relating to a contract that expired in 2014 and all certified payment certificates were settled then,” Chakaka Nyirenda said.
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Mbeta could not be reached when The Daily Times attempted to contact him yesterday.
The matter is due to be heard at the Commercial Court next week Tuesday by Judge Ken Manda.
The development comes as the government, through the office of the AG, is battling several claims from contracts dating years and decades ago.
