ZIMBABWE Stock Exchange listed Lafarge Cement Zimbabwe Limited (Lafarge) could lose about US$320 000 over a debt owed to Rubtech Machinery and Spares (Private) Limited (Rubtech).
According to the High Court, while Lafarge was directed to pay all the other costs and charges incurred by Rubtech, it is also set to pay taxes charged in terms of the law.
The writ of execution follows an October 25, 2022 judgement by High Court Judge Justice Jacob Manzunzu.
The High Court has since issued a Writ of Execution directing the Sheriff of Zimbabwe to attach Lafarge’s property to settle the debt.
“You are required and directed to attach and take into execution the movable goods of Lafarge Cement Zimbabwe Limited… of Manresa, Arcturus Road, Greendale, Harare and of the same cause to be realised the sums of US$307 204, 49 together with interest thereon at prescribed rate calculated from November 16, 2020 to date of final payment, payable at the Reserve Bank of
Zimbabwe (RBZ) auction rate on the date of payment…,” reads part of a Writ of Execution from the High Court registrar to the Sheriff dated October 26, 2022.
Lafarge was also ordered to pay US$14 117, 85, together with interest, to be calculated from November 16, 2020 to date of full and final payment using the RBZ auction rate as well as all the costs on an attorney-client scale.
In an October 27, 2022 Notice of Seizure and Attachment, the Sheriff of Zimbabwe ordered the transfer of money from Lafarge’s bank account into Rubtech’s bank account.
“The defendant’s (Lafarge) interest in the following account… belonging to Lafarge Cement Zimbabwe Limited held at CBZ Bank Limited Msasa Branch is hereby placed under judicial attachment and the sum of US$321 322, 34 together with Sheriff costs and commission should be transferred into the Sheriff of High Court CBZ Bank Selous Branch account number… (nostro) within 48 hours of service of this notice,” the notice reads.
Despite this setback, Lafarge Cement Zimbabwe is upbeat about its ability to double its production volumes next year when its vertical cement mill (VCM) becomes operational in the fourth quarter of this current financial year.
Chairman Kumbirai Katsande said this will position the group on its growth path while it further consolidates its market share.
“The commissioning process of the new VCM started in Q2 2022. The Company will essentially double its cement production capacity and improve raw material availability to the new DMO plant (Dry Mortar Operations).
“The launch of the new VCM will reposition the company on a growth path into the future. This will have a positive effect on the company’s revenue generation and profitability,” he said in a performance update for the half-year to June 30, 2022.
Despite start-up challenges associated with the newly commissioned VCM, the company has already noted an improvement in cement availability since the end of June 2022 and is confident that volumes will continue to grow in the second half of the year in line with strategic objectives.
During the half-year period, Lafarge recorded volume of cement sold declined by 56 percent versus the same period last year.