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SKF applies to recover over $300,000 debt from KCM

SKF Zambia has applied to commence proceedings against Konkola Copper Mines (in liquidation) to recover debt amounting to US $305,063 for various specifically custom designed and manufactured inventory products which were ordered at its request.

It wants an order that in the alternative KCM collects and pays for all the inventory products specifically manufactured on its behalf from its warehouses.

SKF also wants an order for storage costs it incurred in Zambia, South Africa and Belgium as a result of KCM’s failure to collect the said inventory.

In an affidavit in support of summons for an order to commence proceedings against a company in liquidation filed in the High Court commercial registry, the plaintiff stated that between August 1, 2018 and December 1, 2019 pursuant to an existing business relationship and agreement, KCM at the instance volition and request entered into an agreement for the supply of various products.

Tony Luwo, a customer experience manager, said by an oral existing business agreement and through purchase orders and back orders, KCM requested SKF to specifically procure and manufacture various products custom made and unique to the mining company’s requirements.

He said in accordance with the said agreement it procured and manufactured the products of inventory valued at US $305,063.52 based on credit limits and the terms and conditions of the agreement between the parties.

Luwo stated that the inventory which was procured and manufactured by SKF at the instance of KCM are being held in different countries such as Zambia, South Africa and Belgium.

“Despite several reminders and probes on the plaintiff’s part, the defendant has to date neglected, failed and refused to collect and pay for the said inventory,” Luwo contended.

He said SKF has wasted a lot of time, energy and money on the matter as a result of KCM’s failure, refusal and neglect to pay and collect the ordered goods but to no avail.

“In breach of the said agreement, purchase orders and back orders and despite numerous reminders sent to the defendant by the plaintiff, KCM has to date failed, neglected and refused to pay the plaintiff US $305,063.52 for the custom-made inventory procured and manufactured by the plaintiff and abide by the terms of agreement with the plaintiff,” Luwo stated.

He added that KCM is indebted to SKF as it has caused it to suffer loss and damage and that the mining company has no defense to the claims made.

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