Supreme Court reverses US$22 million award to Adam Molai’s cooperative

Adam Molai

HARARE – The Supreme Court has reversed a High Court judgment forcing the National Social Security Authority (NSSA) to pay US$22 million to the Housing Corporation of Zimbabwe (HCZ) for breach of contract.

The order was granted last year in favour of HCZ whose representatives are late former president Robert Mugabe’s son-in-law Adam Molai, Stephen Duggan and Aleck Nyatanga.

In an extempore ruling (decision made straight after hearing) on Monday, three Supreme Court judges Susan Mavangira, Tendai Uchena and Felistus Chatukuta set aside with costs the judgment of the High Court by Justice Paul Musithu which enforced an arbitration award.

HCZ’s claim was in addition to US$16 million which NSSA has already paid to the company.

In 2017, NSSA and HCZ had concluded a housing offtake agreement which required HCZ to make available to NSSA 8,000 housing units at US$38,000 per unit in Caledonia, Harare.

Without availing a single unit, and having received a US$16 million deposit, HCZ canceled the contract and claimed US$56 million in damages. Arbitrator Peter Lloyd awarded HCZ US$22 million and a challenge by NSSA to the award failed in the High Court.

Advocate Thabani Mpofu appeared for NSSA while HCZ was represented by Advocate Daniel Tivadar.