THE Luanshya Municipal Council has terminated the lease agreement of Baluba Motel with Nu-Logistics Limited for failure to settle monthly rates amounting to more than K280, 000.
Council public relations manager Gideon Thole said in a statement yesterday that the decision to terminate the agreement was arrived at after Nu-Logistics failed to settle the rates arrears.
Mr Thole said the company gave the council protracted excuses for not settling the outstanding bill which had been accumulating over the past months.
Nu-Logistics is owned by a former State House aide Alfred Chipoya, who served in the MMD administration.
Mr Thole said the council was seeking to maximise benefits from its commercial ventures and would not tolerate tenants who default on paying for the services rendered.
“It is a well-known fact that Luanshya Municipal Council as a local authority uses its commercial properties to generate resources for financing the delivery of various services to the residents,” he said.
Luanshya Municipal Council and Nu-Logistics Limited entered into the lease agreement for Baluba Motel situated along the Kitwe-Ndola dual carriageway in March 2011.
Times of Zambia