The Zimbabwe Industrial Development Corporation (IDC) is still pursuing enforcement of a ruling against its Romanian partner in a failed glass project.
An International Chamber of Commerce tribunal o…
The Zimbabwe Industrial Development Corporation (IDC) is still pursuing enforcement of a ruling against its Romanian partner in a failed glass project. An International Chamber of Commerce tribunal ordered Romsit, the Romanian firm which was the IDC“s partner in the National Glass Company of Zimbabwe, to pay damages of US$ 4.2 million. The judgement has yet to be processed by the Romanian courts, however. Payment of the US$ 4.2 million would help recover in part the losses incurred by the IDC in paying creditors after the sudden closure of the Kadoma-based National Glass factory. Production started in November 1990 and continued under IDC management until June 1991 when the Romanians took over under a five-year management contract. It was then, claims the IDC, that the quality of the product started to deteriorate. The plant had to close down in March 1993 as a result of serious technical problems. The tribunal which heard the case between the IDC and Romsit ruled that Romsit“s failure to rectify defects in the plant was responsible for the damage at National Glass, and found that the IDC was entitled to the cost of rehabilitating the glass factory, including the civil works and interest paid to service debts incurred to finance the construction of the plant.