UMP Sues Larfage Over US$34K Debt

Spread This News

By Mary Taruvinga

UZUMBA Maramba Pfungwe Zvataida Rural District Council has dragged Larfage Cement Zimbabwe Ltd to court over unpaid landowner and road levy fees with arrears having accumulated to US$34 026.

According to summons at the High Court, the listed cement manufacturer owns a mining claim for base minerals in the RDC’s area of jurisdiction, which is 154 square meters.

In terms of the RDC’s Act and the Mines and Minerals Act they plaintiff is allowed to prepare a budget consisting of proposed tariffs to be applied when levying mining claim holders and to collect the levies raised.

The RDC’s 2021 budget having been approved by Local Government ministry was set at the rate of US$214 per square meter per year and road levy.

Sometime in January this year, the RDC raised and dispatched to Larfage, an invoice for payment of road levy amounting US$1 070 for the whole year of 2021 and landowner’s fee in the sum of US$16 478 for half of 2021.

In October 2021, the RDC raised and dispatched another invoice in the sum of US$16 478 being landowner’s fee for the second half.

“All the funds were not paid within seven days stipulated in the invoice. To date Larfage owes the RDC US$32 955 being landowner’s fee and US$1 070 being road levy fee for 2021,” the summons read.

Despite demand, no cent has been paid towards settling the debt, prompting the local authority to seek legal recourse.

The RDC is therefore demanding US$34 026 being landowner’s and road fee in terms of the law, interest on the amount and costs of suit.

The matter is yet to be heard.