Drax Challenges Cancellation Of Contract By Natpharm

Lawyers representing Drax Consult SAGL (the controversial company which cost Obadiah Moyo’s cabinet post) have this Monday written to the National National Pharmaceutical Company (NatPharm) challenging its cancellation of the contract under which the company supplied drugs to the state-owned dispensary.

In a letter dated 13 July 2020 and addressed to Natpharm, Samukange Hungwe Attorneys said the purported cancellation of the contract for the supply and delivery of medicine and medical sundries by the company on 11 June is null and void. The lawyers wrote:


We represent Drax Consult SAGL, kindly note our professional interests.

Our client concluded a contract for the supply and delivery of medicine and medical sundries with yourselves on the 11th of December 2019. Our client performed all its obligations in terms of the law.

Our client learnt with shock that you purported to cancel the contract for the alleged public interest on the 11th of June 2020.

Our instructions are to indicate that your purported cancellation of the 11th of June 2020 signed by one Mrs F.N. Sifeku is null and void for the following reasons;

  1. The purported cancellation appears founded on a directive from the Ministry of Health and Child Care which clearly is outside the contractual parameters that govern the parties’ relationship.
  2. The purported termination is allegedly in terms of Section 89(b) of the Public Procurement and Disposal of Public Acts Act (Chapter 22:23). This Act does not exist.
  3. The purported termination is not for any breach at the instance of our client hence the supposed ground of public interest is erroneous and unsupported at law.
  4. Our client did not, in fact, breach the contract between the parties

Against the above background and in line with the General Conditions of Contract and the contract between the parties, our client hereby gives notice of its intention to commence arbitration under the London Court of International Arbitration Rules (LCIA).

This route is being pursued on the basis that the purported cancellation is not only unlawful but was capriciously and un-procedurally done.

Unless you desire to resolve the apparent dispute amicably, in line with the General Conditions of Contract, Clause 18.2, the process of arbitration shall be pursued.


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