in Business & Finance

Zimbabwe government minister in legal battle over Rainbow Airlines

Posted 18 October 2017 · Add Comment

Zimbabwean Minister for Information Communication Technology, Supa Mandiwanzira, has been taken to court by a fellow shareholder of local start-up carrier Rainbow Airlines citing breach of contract, reports ch-aviation.

Frank Humbe, through his firm, Day Investments, has issued summons against the minister's company, AB Communications, together with Rainbow Airlines.

Humbe said in his declaration that he had entered into an agreement with Mandiwanzira with the aim of launching Rainbow Airlines.

However, when this failed, Humbe said he concluded a concluded a sale agreement with Mandiwanzira in respect of his 700 shares in Rainbow Airlines, which constitute 70% of the airline’s issued share capital.

Mandiwanzira, through his AB Communications vehicle, was to have paid Humbe, through Day Investments, USD355,419.43. However, when Mandiwanzira failed to make the payment by on February 12, 2017, Humbe cancelled the deal. Humbe added that in subsequent discussions, Mandiwanzira’s firm made a compromise offer for the same shares, offering to pay off the full amount in monthly installments of USD10,000.

“In breach of the compromise agreement, first defendant has failed, refused and/or neglected to either pay the agreed installments or liquidate the sum in full ... The first defendant has on the basis of the agreement whose terms it has not complied with taken its position in second defendant and is now solely running that entity,” Humbe said.

AB Communications has since countered Humbe's claims stating that the talks concerning the installment plan were without prejudice and that no binding consensus was ever reached on the matter.

“The defendants further aver that the parties were and still are to reach consensus on the terms of payment as discussions are underway and have not yet yielded any binding terms. Plaintiffs are, therefore, put to the strictest proof of the alleged binding compromise.”

* required field

Post a comment

Other Stories
Advertisement
Latest News

IBAC welcomes ICAO decision on CORSIA baseline

The International Business Aviation Council (IBAC) has welcomed the decision by the Council of the International Civil Aviation Organization (ICAO) to remove 2020 emissions levels from the calculation of the baseline of the Carbon

Bolloré Logistics extends the airlift with Africa to ensure supply continuity

Bolloré Logistics is extending until 31 July 2020 its special weekly cargo freight service between Europe and West Africa, the WARA AIR SERVICE.

Quarantine measures threaten aviation restart in Africa

The International Air Transport Association (IATA) urged governments in Africa and the Middle East (AME) to implement alternatives to quarantine on arrival that would allow economies to re-start while avoiding the importation of

Airbus' H160 receives EASA approval

Airbus Helicopters’ multi-role twin engine H160 has been granted its type certificate by the European Union Aviation Safety Agency (EASA).

Ethiopian welcomes back business and leisure customers

Ethiopian Airlines has announced that it’s happy to welcome back business and leisure travellers with programmes aimed at safeguarding their health and safety.

African airlines post smallest cargo contraction in May

The International Air Transport Association (IATA) released data for global air freight markets in May showing a slight improvement in the air cargo market, although African airlines post smallest cargo contraction.

See us at