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CTA Ordered to Pay Compensation of 24.3M Meticals to Construtora do Mondego

CTA Ordered to Pay Compensation of 24.3M Meticals to Construtora do Mondego

The Confederation of Economic Associations (CTA) of Mozambique has been ordered to pay compensation of 24 million meticals to Construtora do Mondego, due to non-payment of the construction cost of an office building.

According to a judgement published by Lusa, the judges of the 1st civil appeal section of the Maputo City Judicial Court dismissed the appeal filed by CTA, upholding the decision of the first instance court, “where they set the total amount of the conviction at 24.3 million meticals”.

“The ruling, dated 10 April, upholds a first condemnation made by the Centre for Arbitration, Conciliation and Mediation in Maputo city, following an action brought by Construtora do Mondego for CTA’s failure to pay the cost of constructing an office building, called Casa do Empresário de Inhambane, in the city of Maxixe, Inhambane province,” explains the news agency.

“Invoices were issued for the work, but Mozambique’s largest business organisation did not pay the amount, due to its inability to pay, which led to the work being left unfinished,” it adds.

According to Lusa, the Maputo City Court ruled that CTA had failed to prove that it had acted with the necessary diligence to avoid the damage, and that it should compensate Construtora do Mondego.

The ruling also found unacceptable the argument put forward by a witness who testified for CTA that the organisation did not have the debt capacity to mobilise the resources needed for the contract.

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