Headline NewsHealth

Honeybee discontinues US$17m case


HONEYBEE Pharmacy Limited has discontinued the matter in which it sued Government demanding payment of $17, 958, 150 for the alleged “defective’ medical kits supplied in 2020 to pursue an out of court settlement .

The company wanted the Lusaka High Court to compel the State to pay it $4, 998, 375 for the 500 medical kits it supplied under contract no. MOH/SP/032/19-02 and in the alternative for specific performance of the contract. The kits supplied included condoms and gloves.

It claimed that Government had breached the contract.

Honeybee through its lawyers Tutwa S. Ngulube and Co filed a notice of discontinuance.

“Take notice that pursuant to the provisions of the arbitration act no.19 of 2000, and with a view to an amicable settlement of these proceedings herein. The plaintiff wholly discontinues these proceedings to pursue an excuria in the matter,” read the notice.

The State in an intended defence which they had filed as exhibit in May this year, contended that Honeybee was not entitled to any of the reliefs sought saying the goods supplied were neither of merchantable quality not fit for the purpose of the contract.

It argued that the contract was fraudulently acquired as by section 89 (1) (a) of the public procurement act, no.8 of 2020, a bidder is eligible to participate in a procurement if the bidder has the legal capacity to enter contract, which Honeybee did not have at the time.

The State said Honeybee was only incorporate in April 2, 2020.

It is also a requirement by section 90(4) of the Public Procurement Act, no.8 of 2020, qualification of a bidder shall be assessed by examining whether the bidder meets the qualifications criteria.

Therefore, the State contended that the contract was fraudulent and the company has been reported to Drug Enforcement Commission and Anti-Corruption Commission.


Related Articles

Back to top button