INCARCERATED businessman Moses Mpofu is demanding over US$1 million from the City of Harare for the alleged unjustified suspension of a street-lighting contract.

According to a letter addressed to acting town clerk Phakamile Mabhena Moyo, Mpofu said his company Juluka Projects & Plant Hire had completed 65% of the contracted work and invoiced the City for US$1 107 420,42.

“Sometime in or about the month of May 2024, you entered into a contract, ‘the contract’ or ‘the agreement’, with our client in terms of which it, our client, was to install, and did install, streetslights along various roads within the city. The contract price was, or is, the sum of US$1 745 570,21,” wrote Nahuna Law representing Mpofu.

Harare suspended the contract citing ongoing legal proceedings, a claim the company disputes.

“So soon after the signing of the contract, our client busied itself performing the works up to July 26, 2024 when you purportedly, unilaterally and abruptly suspended the agreement through your letter of that date. In your said letter, you cited that the agreement was being suspended,” the law firm said.

“Our client was, and remains, shocked by your move to suspend the contract for the reason given as it is not aware of any legal proceedings relative to the contract. 

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“In this last regard, we ask that you let us know the nature of the legal proceedings referred to in your letter. This is vitally important, we must say.”

The letter demanded immediate payment of the outstanding invoice and lifting of the contract suspension.

“The aforesaid notwithstanding, our client instructs that as at the date of your purported suspension of the contract, it had performed approximately 65% of the works and had duly invoiced you the sum of US$1 107 420,42, being the value of the completed works up to that date,” the lawyers said.

“Even though you were invoiced as aforesaid, you failed, refused and/or neglected to pay the said amount, which is unserious and a breach of your obligation under the contract. 

“This being the case, our instructions are to demand, as we now do, the immediate release to our client, of the said invoiced amount immediately upon your receipt of this letter or at the very latest, by Friday November 15, 2024.”

Mabhena yesterday said the letter had been referred to the city’s legal department.