FRA sued for K4 million over alleged breach of maize contract

The Food Reserve Agency (FRA) is facing legal action after Imaber General Trading Limited sued it in the Lusaka High Court, seeking over K4 million in damages for alleged breach of contract.

According to court documents, the Lusaka West-based company claims FRA failed to honor multiple maize supply agreements signed between May 3 and July 12, 2022.

Under these contracts, FRA was obligated to supply Grade ‘A’ Zambian white maize for export after receiving full payment. Imaber General states that it paid FRA K8 million in two installments—K6.8 million on June 30 and K1.2 million on July 30, 2022.

The maize was to be made available within seven days at FRA storage facilities in Northern and Muchinga provinces. However, the company alleges FRA failed to fulfill four of the six contracts, causing significant financial setbacks.

Imaber General claims that 811.13 metric tons of fully paid-for maize, worth K3,244,520, were never released. It also alleges that FRA failed to deliver an additional 6,899.43 metric tons as per agreements signed between July 13 and July 16, 2022.

The company further asserts that it incurred K153,700 in transportation, accommodation, and upkeep expenses while trying to collect the maize from Mbala and Kasama.

Additionally, it claims to have paid K700,000 in demurrage fees after hired trucks remained idle at depots due to FRA’s failure to release the stock.

Imaber alleges FRA ignored security protocols, allowing maize meant for its contracts to be released to unknown third parties.

Despite attempts at arbitration, the company accuses FRA of frustrating the process and even involving the Drug Enforcement Commission (DEC) in what it describes as a baseless investigation against its directors.

It further claims that FRA’s actions led to the unlawful closure of its bank accounts, worsening its financial difficulties.

The company is demanding damages for FRA’s alleged failure to fulfill contracts No. 1, 2, 4, 5, and 6, stating that the dispute has left it in debt with transporters over unpaid demurrage fees.

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