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Public Works sued over lease cancellation

A property owner who allegedly spent R14 million revamping a building he leased to the Department of Public Works has gone to court to hold the government to the agreement. Businessman and doctor Asgar Ali Dawood Mahomed said in papers before the Pietermaritzburg High Court on Monday that he owned what was known as the Nestle building in Winston Road, Pietermaritzburg. He said a proper and lawful tender process was followed and he was issued with a letter of award. In October 2013, Sindisiwe Linda, a general manager with the department, signed a lease agreement on behalf of it, relating to the left wing of the first floor of the property. As part of the agreement, refurbishments had to be done by February. Early this year, he received a letter saying: “In the event that the revised time frames are not adhered to, the department will continue with the process of cancelling this contract.”

In February, the department cancelled the agreement, alleging non-compliance, which Mahomed disputes. Mahomed added that no inspections were conducted on January 30, or thereafter, when the entire reconfiguration had been completed in compliance with the agreement. “The cancellation is unlawful and has no legal foundation,” he said. Mahomed said he had spent a lot of money to ensure the building was re-configured according to the specifications in the agreement. The department had leased the property for the Department of Co-operative Governance and Traditional affairs to occupy. The matter was adjourned to a date to be arranged.

Source: www.iol.co.za

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Public Works sued over lease cancellation

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