A big legal fight is happening in South Africa between a black woman-owned gas company and a subsidiary of Remgro, which is controlled by Johann Rupert, the richest man in South Africa.
Zaza Gas, run by Zandile Chiwanza, a businesswoman from Zimbabwe living in Johannesburg, is suing Air Products, a part of Remgro and the largest producer of industrial gas in Southern Africa, for R29 million.
This lawsuit comes after Air Products suddenly ended their business agreement. The case raises issues about fair business practices and the struggles of black-owned businesses.
Chiwanza had a valuable seven-year contract that started on October 1, 2018. This contract gave Zaza Gas the exclusive right to sell Air Products’ gases at a set price.
According to the contract, it was supposed to continue beyond the initial seven years unless either party gave 12 months’ notice before the contract’s anniversary date to end it. The sudden termination of this agreement has caused Zaza Gas major financial problems and harm to its reputation.
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Air Products ended the contract in March 2024, accusing Zaza Gas of theft. Chiwanza strongly denies these claims, insisting the allegations are false and meant to cover up the termination of a profitable deal. Air Products is valued around R10 billion, which shows the size of the company involved in this case.
Zaza Gas’s lawyers responded strongly to Air Products’ actions, arguing that the termination shows Air Products does not respect the contract. This legal battle is about more than just money; it’s also about enforcing the rights of the agreement.
In addition to the financial claims, Chiwanza is seeking R5 million for damage to her business’s reputation. She says Air Products spread false information about Zaza Gas, claiming the cancellation was due to fraud and theft.
Chiwanza’s team argues that Air Products knew the theft claims were false but continued to spread this information to harm Zaza Gas’s reputation. This raises questions about Air Products’ ethics in business.
Chiwanza has also questioned why no one from Air Products or Zaza Gas was arrested if a theft actually happened. She points out that there was no conversation with Zaza Gas about the alleged incident, which makes her believe the claims are not true. The delay in reporting the supposed theft adds more doubt to the allegations.
This legal conflict has been very stressful for Chiwanza and her family, putting a heavy financial burden on them. She has asked for free legal help because it is hard for her to fight a large corporation alone.
Zaza Gas used to employ 40 people and made R4.5 million to R6 million each month, serving over 5,000 customers before the contract ended. The loss of this contract threatens their jobs and income, impacting many lives.
When asked about the situation, Air Products said, “This matter is in court, and we are confident we will win. However, we cannot provide many details. We respect our contracts with all partners and are committed to fair and lawful practices. We deny any unfair treatment in our dealings with Zaza Gas.”
