GBM’s company Sues ZESCO for breach of contract

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4,494 views

GEOFFREY Bwalya Mwamba’s company, Arizona Marketing and Distribution Limited has sued Zesco Limited for breach of contract for allegedly failing to make available a contract form to enable them commence works on a 2014 delivery contract.

This is in a matter in which Zesco aborted a contract for the supply and delivery of poles worthy us$29,588,922 under acrimonious circumstances when Mr Mwamba was still a minister of defence in the PF government.

In 2013, the Post Newspaper now in liquidation published a dramatic headline on its front page accusing UPND vice-president Geoffrey Bwalya Mwamba of unlawfully soliciting contracts from Zesco, Zambia’s the power utility company.

According to The Post at the time, Mr Mwamba had been pressuring Zesco to award his company Arizona Marketing and Distribution Limited a one-year contract for the supply and delivery of wooden poles.

“On 8th June, 2014, the plaintiff submitted its bid in response to the defendant’s advertisement for Lots 1-18 for a total price of US $29 558 922. “On 4th September, 2014 the defendant notified the plaintiff in writing that its bid was successful but only for the delivery of 9m, 10m and 12m wooden poles on a one-year running contract basis for total of US$7 214 155.00,” Arizona has submitted.

According to the statement of claim filed before the Lusaka High Court, Mr Mwamba, who is former Defence minister in late Michael Sata’s government, explained that his company tendered in their bid following an advert by the Zambia Public Procurement Authority (ZPPA).

Arizona submitted that Zesco sent them another letter inviting for a pre-contract negotiating meeting, after which it was confirmed and the scope, quality and type of poles to be supplied were agreed upon.

They charged that as an express term of the bidding document, Zesco would constitute a binding contract between them, that at the time of notification of a successful bidder that the power utility would send the contract form provided for incorporating the agreed terms.

However, in 2013, The Post Newspaper now in liquidation obtained documents from the Patents and Companies Registration Agency [PACRA] which indicated that Arizona Marketing & Distribution, whose bid price on the above Zesco wooden poles contract was US$7,214,155.00 (about K36.7 billion), was owned by Mr Mwamba, of plot 10 Roan Road, Kabulonga,

Other companies that bid for the Zesco contract and where Geoffrey Mwamba, who was Kasama Central PF Member of Parliament had an interest included Engilex, whose bid price for the contract was K14 billion, Premia Supplies Limited with a bid price US$337,500 and Astro Holdings Limited with a bid price of US$405,000.”

23 COMMENTS

    • +7
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      Only a dunderhead like GBV sues the person he was trying to steal from! And then these blood thirsty 1mbeciles from the United Party for National Destruction/ Dunderheads keep pretending that their leaders are not crooks! What a bunch of cretins!

    • vote

      When the post produced evidence you all including ACC said ba post nibaboza so now after 3 years they become truthful? Give him the money for bleach of contract.

  1. +3
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    So Zesco aborted to an agreed contract without any clear reasons?
    What does ‘specific performance’ demand?

  2. +6
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    In all fairness a contract is contract weather one is in PF or UPND because at the end of the day it’s a one zambia one nation. Let’s stop hating .It won’t do us any good.

  3. +1
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    Bad timing Geoffery ,,, You should have let this one under the carpet. Let the sleeping dog lie …

  4. 0
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    Sue them and let them pay through their foreskins. An eye for an eye, a tooth for a tooth, a bleeding nose for a bleeding nose………..
    ..

    ……

  5. 0
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    That’s my vice president. Following and trusting the law to settle disagreement unlike lungu who just unleashes pf police to settle scores because he has a tiny penis. Be a man ka lungu

    • +4
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      Ba LT don’t you have a way to avoid publishing of insults like the ones of NEZ. He can not be insulting the head of state.I can not do that if Mr. HH was a president.please block him.

  6. +8
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    Now he is out of govt, these million dollar contracts have dried up so is the life of Zambian Politicians…no wonder the most disappointing politician of the year Miles Sampa wants back in…I am sure ZAFFICO would easily have supplied and delivered wooden poles at half or quarter the cost and pump back the funds in new Plantations and equipment.

  7. +10
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    GBM by suing Zesco for that dubiously acquired contract, You have potentially opened up a pot of worms that will definitely lead you into long jail term in Chimbokaila which the Government with his Excellency had messfuly let you off.
    Greedy,arrogance and ignorance will always prevail when self egocentric person finds himself with Financial Challenges.

  8. +2
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    @mokongo, yes commentators appear not to have read the story properly. The contract was stopped because the Post revealed that it dubiously awarded and way above other bidders. In short this case can easily turn against GBM. And why now?

  9. +3
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    @Bemba Man, yes, a contract is a contract but not always. It ceases to be one once founded on illegality or other vitiating factors such as capacity, duress etc. And all looks like GBM wanted power so as to cement his contracts with govt agencies! Someone don’t tell me that all these individuals vying for public office do so out of ulterior motives or selfish interests. Fellow citisens, we are in for a ride with or without PF.

    • +1
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      There is also a clause that states that as you have mentioned that a contract can be canceled.

    • +3
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      Yes I’ve seen this in the mines where management will just instruct you not to receive ordered items from Supplier “X “. No reason is given and if you had received a “cut ” you just start sweating.

  10. +5
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    We are sure if they had won all these ‘contracts’ would have been ‘honored’ part of the reason ZESCO under performs is issue such as this they end up over paying for the supply of goods and then at the same time someone cries load shedding. Money meant for re-investment goes into the pocket of one fattie madumbo just because he is Minister of ‘defense”….

    • +3
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      The Upnd knew all dubious deals GBM had with parastatals but because of desperation for power all is “forgotten “

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