Mbada Diamonds in trouble

Daniel Nemukuyu Senior Court Reporter
MBADA Diamonds has fallen on hard times with the High Court this week ordering the firm to pay up debts amounting to $700 000. The company failed to defend claims by Tandamanzi Drilling and Hennem Investments for $230 000 and $469 365, respectively. This prompted Justice Joseph Mafusire to rule in favour of the creditors.

Several other cases pitting Mbada are yet to be determined by the High Court.
Mbada, in one of the cases, filed a notice of opposition, which the judge dismissed as a “delaying tactic” as the diamond mining company was not denying its indebtedness. Tandamanzi Drilling was engaged by Mbada to undertake core drilling services at Marange diamond fields.

In terms of the agreement, Mbada was supposed to foot all the costs incurred by Tandamanzi in the execution of the task and payment for actual service.
Mbada would pay for the incurred costs upon production of invoices by Tandamanzi. Tandamanzi carried out the services and produced invoices for extra costs incurred. The bill, according to the invoices, totalled $570 742 but Mbada Diamonds only paid $340 000, leaving a balance of $230 742.

Mbada Diamonds did not pay the balance on demand. Mbada acknowledged the debt and promised to settle it through monthly instalments, but failed.
On January 24 this year the parties met in Borrowdale and Mbada undertook to settle the debt by May 14.
It did not.

On July 22, Mbada once again made an undertaking to settle the debt through monthly instalments of $62 686 but still failed. In the Hennem Investments case, the company provided Mbada Diamonds with goods between 2013 and 2014. The transactions resulted in Mbada owing Hennem $469 365.

On July 24, Mbada wrote to Hennem acknowledging the debt and promised to clear it in monthly instalments of $147 200 but did not do so. Two widows who lost their husband when he was hit by a dumper in Chiadzwa in 2012 are also claiming $700 000 in compensation.

Ms Egna Nyanzou and Ms Mwanyara Njanji blame Mbada Diamonds for the death of their husband.
They have issued summons at the High Court. The widows want the company to compensate them for loss of support, pain and suffering following the death of their husband on December 18, 2012.

According to the claim prepared by their lawyers Mugiya and Macharaga, their husband was a security officer at Mbada from 2009 until his death.

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