Court orders Machakos County Government to pay car dealer Sh 28 million

Milimani Law Courts

Machakos County Government of has been ordered to pay a car dealer company over Sh 28 million for supply of motor vehicles.

Justice Muigai ordered Governor Alfred Mutua’s administration to pay Simba Corporation limited Sh 27,038,610.66 being the balance of purchase price of 21 vehicles, where only 13 of them were paid for.

Simba Corporation told the court that pursuant to a Supply Circular No. R04/2015 – 2016 for supply of Motor Vehicles dated 16th June 2015, and an Award of Tender No. GM/42/2015-2016 for the supply and delivery of 21 Number 4×4 Double Cab pickups to the company vide notification of Award dated 20th  August 2015, the county government sought and the simba corporation accepted to undertake the supply and delivery of the vehicles.

Simba Corporation argued that the terms and conditions of the supply, delivery and payment of the purchase price for the vehicles were set out under the supply circular and special conditions of contract attendant to the tender and stated. 

The motor dealer was required to submit detailed specifications, drawings, catalogues etc for the products intended for supply, the company also was required to indicate on the specifications sheets whether the equipment offered complied with each specified requirement. 

Simba was to deliver motor vehicles as per the agreement; upon each delivery, handling over certificates were issued to signify the same and

the purchase price was to be settled within one month upon delivery of each Motor Vehicle.

The company argued that on 22nd November 2015 the county government issued the plaintiff with an LPO No 2373622 under TenderGMC/42/2015-2016 for supply of 7 4×4 double Cab Pickup vehicle at a total purchase price for the supply and delivery of the motor vehicles was Sh 25,337,858 and were all invoiced and delivered on diverse dates.

The County Government paid for the vehicles on diverse dates Sh 21,718,694.00 in respect of 6 vehicles and the balance for 1 vehicle is Sh. 3,619,694 for Motor vehicle Chassis MMBJNKB70FD062461 as per Invoice No 174415 & handing over Certificate No 007422 of 22nd January 2016.

The county government admitted having ordered and received an assortment of motor vehicles from Simba Corporation but argued that the same were fully paid for as agreed between the parties and put Simba Corporation to strict proof.

According to the County Government, the suit is a non-starter as most of the documents annexed to the suit indicate supply of motor vehicles to different entities other than the county government as the official purchase order and Local Purchase Order in support of the suit show that most of the dealings were with other entities.

County Government added that without prejudice reiterates that full payment has been made to the Simba Corporation as required and shall put the company to strict proof.

The court also declined to award Sh 1,805,658.65million saying  the simba corporation did not prove whether the amount accrues from outstanding debt or from payments made or whether VAT was remitted for payments made for purchase of motor vehicles and VAT is due only for the outstanding amount.