Debt: KZN firm sues Mugabe's dairy farm

Zimbabwean president Robert Mugabe's company has been take to court for failing to settle debt with a plastics firm.

Harare - A South African plastics company in KwaZulu-Natal has taken President Robert Mugabe’s company, Alpha Omega Dairy, to the Harare High Court over a debt of more then R600 000 it says it is owed.

Blakey Investments says last year it produced plastic products for Mugabe’s dairy farm in the Mazowe district about 20 kilometres west of Harare.

Early this month, Blakey filed its case at the High Court, case HC3813/16, seeking an order to compel the Mugabe family business to pay the debt of $38 391.72 (R605 232.03), according to Harare daily, Newsday.

Alpha Omega Dairy has indicated it will defend the claim and says it intends to also challenge the debt. Blakey Investments said at around July 27 last year, it manufactured and supplied Alpha Omega Dairy with packaging items worth $2 500 (R39 411).

“On or around October 16, 2015, the plaintiff (Blakey Investments) further supplied the defendant (Alpha Omega Dairy) with further packaging materials worth $33 291.72 (R524 832.31) at the defendant’s special instance and request. The goods also incurred freight charges of $2 600 (R40 988), which the plaintiff paid for on behalf of the defendant.”

It claims despite demand, the Mugabe company failed to settle the debt of $38 391.72 (R605 232.03).

According to Blakey, Alpha Omega Dairy acknowledged the debt in February and said it would settle it, but then failed to pay up.

Mugabe acknowledged last year that the dairy was not making money. It is on land taken from Zimbabwe’s most successful white dairy farmer in 2004. The government paid for half of the farm and some of its top class equipment and cattle.

Independent Foreign Service