Drax International Proposes Judges To Mediate In Its US$20M Contract Dispute With Zim Govt

Drax SAGL International has proposed that two (2) retired judges, Justices Moses Chinhengo and Ahmed Ebrahim — together with Advocate Firoz Girachmediate mediate in its US$20 million contract with the government of Zimbabwe.

The contract to supply medical equipment was cancelled by the Ministry of Finance and Economic Development after it had emerged that the equipment was overpriced.

In reaction, Drax challenged the cancellation and sued National Pharmaceutical Company (Natpharm) arguing the termination of the contract was unlawful.

The company is challenging the cancellation of the contract on grounds that it had performed its obligations in terms of the law. A letter from Drax addressed to R. Mtombeni of Natpharm reads:

Our client concluded a contract for the supply and delivery of medical supplies with yourselves on 11th December 2019. Our client performed all its obligations in terms of the law…
Our instructions are to indicate that your purported cancellation of the 11th June, signed by one…Sifeku is null and void….
The contract has already seen the then Health minister Obadiah Moyo and four officials arrested and charged with criminal abuse of office after authorising the supply of the equipment despite objections from Treasury.

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