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Firm awaits court decision on Aecom R8m

Judgment has been reserved in a court case which could see one of the City’s main tender-implementing agents liquidated. Local construction company Good Hope Construction (GHC) hauled Aecom to court in August 2015 for failure to pay R8 million. GHC filed an application seeking a final court order to liquidate Aecom and made its final arguments in the North Gauteng High Court in Pretoria last week. GHC attorney Sean Pienaar told the Cape Times his client was pleased with the “fair hearing” and felt confident they would win the case. GHC chief executive Raziek Rajah said he was determined to see the matter through to show other construction companies experiencing similar situations that they need not fear litigation.

Aecom attorney Hielien Venter said her client was unable to comment on a matter which she claimed was sub-judice. “We do, however, wish to reiterate... Aecom has strongly opposed the application since its inception due to: the lack of legal merits justifying liquidation; Aecom denying that it is indebted to GHC; and liquidation proceedings being an inappropriate forum to resolve contractual payment disputes,” Venter said. Aecom handed GHC a contract to refurbish City-owned flats in Manenberg, but failed to pay GHC after the City cancelled its contract with Aecom in August 2015, Rajah said in court papers. He said Aecom was to pay GHC R7896242.18 by January 2015, but this had not been done. In GHC’s founding affidavit, Rajah said his company applied for liquidation on the grounds that Aecom was unable to pay its debts.

“Since 2014, Aecom began defaulting on various payments due to us. I was told that Aecom did not have sufficient funds to pay us,” said Rajah. But Aecom chief executive Alex Du Plessis Le Grange disputed this in an answering affidavit, saying his company opposed the liquidation application. Le Grange said Aecom owed GHC R6 225 537.18, not R7 896 242.18. “I do not understand how the applicant values its total claim at R7 896 242.18. “Aecom issued a further interim certificate reflecting that GHC is indebted to Aecom in the amount of R10766427.52,” said Le Grange. He added that the contract work had not been completed, and the contract still existed. “GHC is, therefore, not entitled to recover any of the retention monies from Aecom,” Le Grange maintained. Rajah had said Aecom began defaulting on various payments due to GHC since 2014. But Le Grange refuted this. Judgment was reserved.

Source: www.iol.co.za

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Firm awaits court decision on Aecom R8m

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