Oromia International Bank (OIB) has filed a 7.9 million Br suit against Al Buruj General Trading Plc at the Federal High Court Ninth Civil Bench registrar office. The charge is brought against Al Buruj in what OIB is claiming is failure to deliver on a contract entered a year ago for the provision of seven Toyota Double Cabin cars.

In a contract attached to the charge as evidence, Al Buruj had agreed to provide the cars manufactured in 2010 to OIB for a total of 8.7 million Br to be delivered within 90 days after down payment has been made. Although the 2.6 million Br down payment was made on January 3, 2011 for the contract entered on December 28, 2010, the company had only delivered two cars on June 2, 2011 for which full payment was made, the charge filed by OIB reads.

In case of non delivery at the end of the 90 days, which was March 28, 2011, a weekly five per cent interest of the contract amount in penalties would be paid to OIB, according to the contract attached.

The charge filed with the registrar’s office of the court and is waiting to be assigned to a judge. Once it gets to a judge and hearing commences, the bank is asking to be paid a total of seven million Birr in penalties for the alleged delay according to the terms of contract.

Despite repeated requests of delivery of the trucks, Al Buruj had failed to make the payment the bank alleged. As a result, OIB was forced to look for other suppliers whose lowest offer was more than what it had agreed with Al Buruj and it should be made to pay the difference, the charge also claims.

Along with the charge, the bank has attached the offers made to it for the invitation it had floated to provide the remaining five cars. MOENCO, Greenland Motors Plc and Inter Aman Plc had made offers of 1.444 million, 1.449 million, and 1.435 million Br, respectively, according to the document.

The bank claims in its charge that Al Buruj, an import export company established by Ahmed Abderuf in 1998, should pay the 925,000 Br difference between the contract price they had agreed on and the lowest offer of Inter Aman Plc. All of these added up have seen the company lose 7.9 million Br and Al Buruj should pay nine per cent interest, claims the charge filed by Shiferaw Ahmed, the bank’s lawyer.

The charge was filed with 41 pages of documents and what the bank claims is evidence.


By EDEN SAHLE
FORTUNE STAFF WRITER