Firm demands K99 million from government over alleged unpaid road contracts

Construction firm, Pittscon, Zambia Limited has taken legal action against government, demanding immediate payment of over K99 million in outstanding dues for roadworks carried out under multiple public contracts between 2017 and 2021.

In a statement of claim filed in the Lusaka High Court, Pittscon is suing the Attorney General, who represents the State, alleging breach of contract by the Ministry of Local Government and Housing.

The company claimed that despite completing the contracted roadworks to the ministry’s satisfaction, it has not been paid the certified amounts due.

Pittscon, a Zambian-registered company, was awarded four separate contracts by the Ministry to carry out road maintenance and rehabilitation works in Chibombo, Serenje, and Kapiri Mposhi districts.

These projects included the periodic maintenance of selected feeder roads in Chibombo under Contract No. MLG/W/002/2018, valued at K67.1 million; rehabilitation of the 83 km Ndabale-Chibale (Kaseba Junction) feeder road in Serenje under Contract No. MLG/W/0027, valued at K91.3 million; maintenance of 55 km of feeder roads in Chibombo (M20 to Kapalu Mission) under Contract No. MLG/W/77/26/2020, valued at K70.2 million; and maintenance of 28.1 km of roads in Masansa, Kapiri Mposhi under Contract No. MLG/W/29/1/2020, valued at K35.9 million.

The company stated that it submitted all required interim payment certificates, with the last one submitted on August 3, 2021.

However, by August 21, 2021, an outstanding balance of K33.9 million remained unpaid.

Pittscon claimed that under the terms of the contracts, government was required to make payments within 56 days of certification. Failure to do so, it argued, attracted interest at the prevailing Bank of Zambia (BoZ) lending rate.

As of December 20, 2024, the unpaid amount had accumulated K22.9 million in interest.

The company also contended that inflation had eroded the real value of the debt, which it says is now equivalent to K76.4 million in today’s terms bringing the total claim to K99,364,171.70.

Despite repeated demands, the company alleged that government had failed to fulfill its financial obligations, causing significant financial strain and inconvenience to the business.

Pittscon is seeking immediate payment of K99.36 million, damages for breach of contract, interest on the total amount at the current commercial bank lending rate until full payment is made, and legal costs.

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