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Battle between Tshwane and fleet management provider back in court

The ongoing and bitter legal battle between the City of Tshwane and its fleet management provider has made yet another turn in the court, with the Moipane group of Companies claiming that the City owes it millions. The company claimed that the City was in arrears of between R60 million and R100 million with its payments for services rendered and that it was in contempt of court for approaching other services providers to provide it with its fleet requirements. The Moipone Group (applicant) turned to the Gauteng High Court, Pretoria, to try and force the City to honour its obligations. It said that not only is the City in arrears of payment, but it is also in contempt of a former court order as it has approached other service providers, while the contract was clear that the applicant was the exclusive service provider.

One of the gripes is that the City had ordered 187 waste trucks, but when Moipone delivered the trucks, the City refused to accept them. The applicant said the City had to honour its agreement, pending the outcome of review proceedings instituted by the City. The latter has instituted review proceedings, to be heard at a later stage, as it wanted to get out of its contractual obligations with Moipone. Acting Judge Norman Davis, however, earlier this year ordered that the City had to comply with its obligations until the contract was set aside or confirmed. Moipone said the City is forcing it to its knees by not paying for services rendered to it and that will result the in the applicant being liquidated.

They said the Davis judgment was clear that the contract remained in place until the final word on its validity had been spoken. The applicant said if the City remained in breach of that order, City Manager Moeketsi Masola should be jailed for 30 days for contempt of order. The City, on the other hand, denied it was in breach of the court order, nor that it was liable to pay the amounts claimed by the applicant. It relied on another judgment issued this year where Judge Hans Fabricius said the City could source waste services from other service providers. But the applicant pointed out the order also said the waste trucks must be sourced from it (Moipone). The court meanwhile reserved judgment on these issues.

Source: www.iol.co.za

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Battle between Tshwane and fleet management provider back in court

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