Zambezi Portland Cement Vs Dangote
A new legal dispute has come before the Lusaka courts as two of the top cement producers clash over a purchase deal.
Dangote Industries Zambia Ltd., a newcomer to Zambia owned by the Nigerian billionaire Aliko Dangote, has filed suit against Zambezi Portland Cement Ltd. (ZPC) seeking to back out of a paid transaction for the construction of their plant. ZPC has conversely filed a counter suit against Dangote Industries disputing their claim and pointing to the rights of the contract.
One year ago, as Dangote Industries was building its cement plant, the company entered into an agreement to purchase 990 tonnes of cement from ZPC – although this deal had been made under the previous illegal management of Rajan Mahtani, who has since been removed from the management. Now, according to the suit, the Nigerians want more than 800 ,000 kwacha to be returned to them instead of taking the cement they already bought.
According to the counter-suit, Zambezi Portland has nevertheless fully honoured its past contractual commitments and supplied all the cement to Dangote Industries that was paid for, and are awaiting collection of the product.
Zambezi Portland is in the business of selling cement, not investment banking, said one source at the courts with knowledge of the dispute. Dangote Industries must come collect the product they have paid for, he said, otherwise they don’t have a case to stand on.