State demands US$52m refund from Advanced Africa Solution Ltd
By Hannock Kasama
The State is demanding 52 Million United States dollars refund from Advanced Africa Solution Limited, a company contracted in 2018 to construct Food Reserve Agency -FRA storage sheds on 79 sites across the country.
The State has demanded the refund as a disputed amount credited to Advanced AFRICA Solution Limited after the company invoked penalty clauses in a contract.
The State has in a Statement of Claim filed in the LUSAKA High Court submitted that initially before negotiations as of June 30, 2020, government had accumulated a penalty of over US$115m.
The State has submitted that to date Advance Africa Solution has received over 75 million dollars against the initial 73 million contract sum.
In the final submissions in the LUSAKA High Court, the Office of the Attorney General, has argued that the penalty clauses invoked by Advanced Africa Solution are unreasonable, illegal, fraudulent and against public policy.
This is in a matter where the state has challenged the invocation of the penalty clauses in a contract with Advanced Africa Solution for the supply and construction of the Food Reserve Agency -FRA-Sheds in 2018.
The state has further contended that Advanced Africa Solution Limited cannot be entitled to a 52 million dollar penalty credit as it has not incurred any loss.
The state has anchored its contention on the fact that Advanced Africa Solutions Limited has not fully executed its contract for the construction of FRA Storage Sheds.
The State has also sought a court order for the Law Enforcement Agencies to investigate the alleged fraudulent invocation of the penalty clauses by Advanced Africa Solution Limited.
Meanwhile, the LUSAKA High Court has ordered Advanced AFRICA Solutions Limited to file its final counter submissions by September 11, 2024.
