More lawsuits in Karonga-Songwe Road project

Two more local contractors have dragged Zhejiang Communication Construction Company (ZCCC) to court over contractual disagreements in the construction of bus stops on the Karonga-Songwe Road.

The Chinese company subcontracted Nedi Civil Engineering Company and Professional Merchants Civil Contractors to construct eight bus bays each in the project funded by World Bank.

Some ZCCC vehicles impounded by sheriffs

In separate lawsuits, their  lawyer Leonard Mbulo wants ZCCC to pay over K400 million for allegedly defaulting payments for works completed.

Documents filed by Nedi Civil Engineering show the firm was supposed to construct bus bays worth K26.9 million each, but says ZCCC owes it K170.2 million. It is also claiming damages for breach of contract, two percent interest on the K170 million starting from January 2018 and statutory collection fee of K5.2 million.

“Despite acknowledging receipt of invoice ZCCC neglected to pay the subcontractor the said sum,” reads the statement of claim.

On the other hand, Professional Merchants, which pegged a bus bay at K33.5 million each, is claiming K214 201 000 for damages, two percent interest from January 2018 and K6.5 million as statutory collection fee.

Mbulo said ZCCC has already been served with court summons.

But ZCCC lawyer Wesley Mwafulirwa said the major problem was misinterpretation of contracts.

Recently, sheriffs impounded ZCCC vehicles over failure to pay North Civil Works over K200 million.

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