CMST wins K4.5 billion court battle


Central Medical Stores Trust (CMST) is set to be paid back US$4.3 million (about K4.5 billion) which the trust paid to SADM Pharmaceuticals as a penalty for late payment of a $340,000 debt.

A panel of nine Supreme Court judges has today ordered SADM Pharmaceuticals to pay back the money to the trust, reversing a High Court ruling which forced the trust to make the payment to SADM.

The case started in 2013 when CMST awarded a tender to SADM Pharmaceuticals to provide medical supplies worth $12,577,605 (about K12.8 billion).

CMST made a $12,236,790 (K12.4 billion) payment and remained with balance of $340,815 (about K350 million).

CMST, however, delayed to settle the balance and only did so in 2020.

SADM Pharmaceuticals then dragged CMST to the High Court Commercial Division demanding interest on the payment.

In June, 2020 the court ruled in favor of SADM, awarding the company $4.3 million.

CMST appealed against the ruling and today a nine-member panel of the Supreme Court of Appeal has ordered the pharmaceutical firm to pay back the money.

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