Duped contractors reject Jaguar discount demands

LOCAL contractors who were allegedly duped of over US$1 million by an Indian firm, Jaguar Oversees have rejected a Memorandum of Understanding by the company’s board of directors demanding huge discounts and that the matter be settled outside court.

The Indian firm was sued over nonpayment of contractual obligations by local contractors who were engaged to construct 208 health posts in Central, Eastern and Copperbelt provinces in 2014 using their own money. The local contractors earlier rejected a “meagre” down payment of US$50, 000 from the over US$ 1 million the foreign company owed since 2015. The contractors also rubbished the proposal by Jaguar for the payments to be made at a rate of K7. 25 per dollar, the rate which was prevailing at the time the contractors were engaged. After about four years of legal battles, the board of directors for Jaguar Oversees have now intervened in the matter. An MoU, however, which was prepared by the board of directors has been rejected by Zambian contractors, who have since submitted another one prepared by them. Winston Siame, a director for one of the main subcontractors of Jaguar Oversees, said the MoU was rejected because some of the conditions were unfavourable. Mr Siame pointed out that the MoU demanded that the matter be withdrawn from the courts of law and settled outside court. He, however, said the courts were the only protection they had in the matter as there was no guarantee that the debt would be settled with the intervention of the board. Mr Siame said the board was also demanding a discount which would be agreed to if the foreign firm would pay immediately. The Indian firm had partnered with Horizon Contractors Limited because it did not have a construction licence. Horizon Contractors also sub- contracted over 100 local firms, with an agreement for the firms to use their own money to carry out the works, then receive a contractual payment upon completion of the works. The over US$19 million project for the construction of the health posts and installation of essential equipment was signed between the Zambian government and Jaguar Overseas on 3rd July, 2013.