Swiss-based Ramatex SA has taken its dispute with a local building material manufacturer, Turnall Holdings to the High Court in a bid to recover $1,1 million which Turnall has failed to pay for raw materials supplied.
Business reporter
The Swiss-based company is also claiming interest at a rate of 1,5% per month from July 1 2016 to the date of payment of the debt in full and the cost of the suit.
The debt was incurred after Ramatex supplied chrysotile asbestos fibre for which Turnall agreed to pay in weekly instalments of $200 000.
According to Ramatex SA’s declaration, it entered into agreement with Turnall in 2009 to supply chrysotile asbestos fibres worth $800 000 per month and in return get paid $200 000 per week. The first shipment was accordingly sent to Turnall on June 24 2009 and was paid in cash.
Due to cash flow challenges at Turnall, however, weekly payments began to fall short of the agreed $200 000, resulting in the accrual of debt.
However, Ramatex SA continued supplying products on credit basis culminating in the debt ballooning to $897 310 as at April 16 2015.
Ramatex say on April 19 2016 Turnall claimed to have paid $93 000 through a local bank.
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“The proof of payment forwarded to the plaintiff was complete with Central African Building Society stamp. However, this turned out to be false as either the document itself was fake or the defendant then reversed the transaction before its bank could effect it. Either way, this exhibited unethical and uncouth levels the defendant has reached in an attempt to prolong honouring its obligation,” reads the declaration.
Ramatex SA say on June 24 2006, Turnall undertook to pay $40 000 through African Century Leasing in weekly batches from June 24. This again did not materialise as Turnall failed to honour the obligation, Ramatex SA said.
Ramatex SA and Turnall agreed on a debt acknowledgement through signing numerous memoranda of understanding (MOUs) and email correspondences.
However, subsequent acknowledgement of debts did not reap any results as Turnall failed to honour the agreed arrangements, resulting in Ramatex stopping supplies on January 23 2015.
