Electricity Management Services Limited (EMS), a company based in the United Kingdom and Wales, has taken legal action against Vice-President Constantino Chiwenga and others after losing a tender to supply smart meters in Zimbabwe. The company has contested the demand for a US$50,000 security payment required to pursue their challenge.
EMS filed a lawsuit naming the Procurement Regulatory Authority of Zimbabwe (Praz), Chiwenga, Zimbabwe Electricity Transmission and Distribution Company (ZETDC), Finance Minister Mthuli Ncube, and Inhemeter Co Limited as respondents. The dispute arose from a tender for the supply and delivery of prepayment vending meters to ZETDC, which was awarded to Inhemeter Co instead of EMS.
In court documents, EMS argued that the requirement to pay security to challenge a bidding process was unconstitutional and infringed upon their rights to administrative justice and judicial review. They also sought a declaration of constitutional invalidity for certain sections of the Public Procurement and Disposal of Public Assets Act.
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The case was heard by High Court judge Justice Sylvia Chirawu-Mugomba, who ruled that EMS had the legal standing to challenge the constitutionality of laws in a foreign country. However, she noted that under Zimbabwean law, the court has the discretion to require security costs from plaintiffs or applicants in legal proceedings.
Despite arguments from EMS’s lawyer, Advocate Tawanda Zhuwarara, that Praz was holding their funds and thus requiring security was unjustified, Justice Mugomba decided that EMS should pay the US$50,000 security for costs. She emphasized the complexity and significance of the case, particularly regarding a foreign entity challenging Zimbabwean laws on constitutional grounds.
The judge’s ruling stipulated that if EMS failed to pay the security, the parties would determine an alternative amount. The case was temporarily stayed pending the payment of the security for legal costs by EMS.
