A PLUMTREE-BASED businessman has dragged the town council to court demanding 175 residential stands or alternatively about US$2,6 million after the local authority allegedly failed to deliver on an agreement which it made with him.
According to summons issued to the council by the High Court on May 21, the local authority is supposed to allocate and peg 170 low-density stands measuring 1 200 square metres and five high-density stands to Mr Charles Moyo who owns Kombani Lodge within three months of the order.
In the event of the council failing to avail the stands, it has been ordered to pay about US$2,6 million.
According to papers filed through his lawyers Lazarus and Sariff, Mr Moyo and the Plumtree Town Council entered into an agreement where the businessman was supposed to assist council with resources to operate in exchange for stands.
“Sometime in 2007 and 2008 the Plumtree Town Council allocated Mr Moyo a stand for the construction of a lodge, another for the construction of a funeral parlour, 170 low density residential stands, seven high-density residential stands and stand for a shopping mall.
“In exchange Mr Moyo was requested by the council to provide financial support and sponsorship to the local authority for various expenditures which included buying a motor vehicle and motor vehicle spares, computer printers and computer accessories, motor cycle, funding construction of Plumtree Border Post terminus, construction of roads and buying stationery among other resources,” read the papers.
The papers further state that sometime in 2008 it was realised by both parties that the value of the total financial investment and contribution as well as the work that the plaintiff had done under the agreement with the council outweighed the value of the land he had been allocated.
As a result, the council resolved to pay Mr Moyo $10,9 billion. The papers further state that council complied with some of the obligations to Mr Moyo while leaving out others.
“Over the past years Mr Moyo has been engaging the council over the matter without luck. In the circumstances the plaintiff claims the following relief against the defendant. That the defendant be ordered to allocate and peg for the plaintiff 170 low-density stands measuring 1 200 square metres and five high-density suburb stands within three months. Or alternatively the defendant be ordered to pay the plaintiff a total sum of US$2,575 million,” read the papers.
The council through their legal practitioners James Moyo-Majwabu and Nyoni Legal Practitioners filed an application for appearance to defend.