COTTCO Transporters Demand Payment In United States Dollars
Transporters contracted by the Cotton Company of Zimbabwe (COTTCO) for the 2023-2024 farming season are demanding payment in US dollars for their services.
As reported by Nehanda Radio, the transporters, represented by the COTTCO Transporters group, accuse the company of breach of contract after it allegedly failed to settle their accounts “in full or part timeously”.
Some of the transporters withdrew their trucks and halted operations.
In a letter addressed to the COTTCO Board Chairperson, the transporters said:
The contracts in issue, varying in scope and duration and periods, were denominated in USD.
COTTCO had been paying us in the same currency before they defaulted on payments which extended up to this day.
The transporters said the new monetary policy should not apply retroactively to their contracts, which were signed before the introduction of ZiG. They said:
We believe COTTCO should not apply the ZIG payment policy in retrospect but should be guided by the contract…
Quite shockingly, recently, COTTCO seems to be have raised resources and ready to pay the transporters, albeit, in ZIG.
One could be forgiven for believing that the client seeks to exploit the changes in our currency to the transporter’s detriment.
The transporters highlighted that their operating costs are all USD-denominated, including loans, employee salaries, rentals, and fuel.
They argued that accepting ZiG would leave them struggling to meet their financial obligations. They said:
The transporter appreciates all challenges that are alleged to be bedevilling the company. Unfortunately, the individual contracts remain ex tandi binding and lawful agreements.
The transporters also raised concerns about a potential conflict of interest within COTTCO management and pleaded for fair treatment. They wrote:
Of concern is the revelation that certain members of management are alleged to be competing with the transporters and it will be curious to check on their respective accounts to see if they are owed.
The conflict of interest is gross and stinks of bad faith…
In view of the above compelling issues, reasons and facts transporters humbly request Cottco to settle their overdue payments in USD as per contract.
In all circumstances, it is fair, just and equitable that settlement be made as contracted.
Early this month, Munyaradzi Chikasha (46), who is COTTCO’s Acting Managing Director, was arraigned before a magistrate for corruptly concealing a personal interest in a financial transaction related to his employer’s operations and money laundering.
Chikasha was accused of devising “a plan to have his trucks contracted to ferry COTTCO goods and benefit financially without disclosing his interests in the transactions to COTTCO.” The National Prosecuting Authority (NPA) said:
He bought two trucks and registered them in the name of his nephew and allegedly instructed his nephew to open a bank account where the payments for the transportation services would be made. A contract for the transportation services was then concluded between the nephew and COTTCO Chiredzi Depot.
Thereafter the accused person’s trucks were used to transport COTTCO goods on various occasions and the trucks were always assigned routes on well-maintained roads.
The accused person made sure that all outstanding payments for the services rendered by his trucks were made promptly even when other transporters who had serviced COTTCO ahead of him remained unpaid for their services thereby showing favour to himself.
The money laundering charges arise from the allegations that he used ill-gotten gains i.e. the money he benefited from the transportation services to acquire two more trucks and finance the building of his house.
More: Pindula News
