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Senior Reporter
CMED (Pvt) Ltd has filed a US$4 million lawsuit against two suspended senior managers, First Oil Company boss and its four directors implicated in the fuel scandal in attempt to recover the US$3 million the State enterprise was defrauded of.
The four are Mr Maxwell William Katunga, Mr Lynon Gilbert Katunga, Mr Alex Kudakwashe Mahuni and Mr Gavin Allen Katunga.

According to summons filed on Thursday by CMED lawyers Musunga and Associates at the High Court, the firm is demanding US$2,7 million, US$665 000 from the six being damages and US$611 611,84 in interests and lost profit.

“The plaintiff demands payment of the sum of US$2,7 million with interest at the prescribed rate from the 1st of March 2013 to date of full payment from all defendants the one paying the other to be absolved,” the summons stated.

The summons further state that: “Payment of the sum of US$665 000 being damages for the cost of finance with interest at the prescribed rate from 1st of January 2014 to date of full payment from all defendants.”

The court papers also said the six defendants should also pay US$611 611,84 being damages for loss of profit with interests at the prescribed rate from September 30, 2014 to date of full payment.

The lawsuit comes after the trial of three First Oil directors -Mr Mahuni, Mr Katunga and Mr Nyamadzawo – which had been set for August 21 failed to kick off.

The three were arrested in July this year and are yet to appear in court on charges of fraud after they allegedly received US$3 million for diesel from CMED early last year, but never delivered it.

The three directors are now being jointly charged with CMED managing director Mr Mhaka and Mr Manjengwa, who are also implicated in the fuel scandal.

Two others cited in the case are National Oil Infrastructure Company chief executive officer Mr Wilfred Matukeni and his counterpart at Petrotrade Mr Tanaka Sikwila, but have not yet been arrested.

The two are accused of misrepresenting to CMED that they were storing three million litres of diesel on behalf of First Oil at Msasa depot when they knew they did not have the commodity.

CMED board chairman Mr Godwills Masimirembwa has said the criminal matter was in the hands of the Prosecutor-General but the board was pursuing another avenue to ensure that it recovers all the stolen funds.

“For us and CMED the focus is on the recovery of the US$2,7 million and interest charges we have suffered which is now about US$4 million,” Mr Masimirembwa said.