An Eastern Cape businessman and his partner are suing government for hundreds of millions of rands over a broken contract to lease two private jets for President Jacob Zuma.
Prince Sivile Mabandla of the AmaBhele nation in Alice and business partner Adegboyega Olulade of AdoAir Aviation claim they were set to earn more than R800-million after successfully bidding for the contract in 2010.
AdoAir Aviation was to supply two luxury Embraer Linaege 1000 jets equipped with sleeping quarters, computer and satellite communication services and a conference cabin with space for six people.
The contract was for a period of five years ending March 31 2015 and the jets would also be used by Zuma when his presidential jet, Inkwazi, underwent maintenance, the department said at the time.
The deal, however, fell through when former Defence Minister Lindiwe Sisulu declined to sign the lease agreements, saying the contract had received adverse legal findings from the department’s lawyers.
On July 1 2011 the department instead took delivery of a Boeing business jet and Bombardier Global Express XRS with a different aviation company.
Newly appointed Defence Minister Nosiviwe Mapisa-Nqakula argued in court papers filed in the Pretoria High Court that the contract was invalid and unenforceable and contravened the Public Finance Management Act.
The contract did not meet Treasury regulations and was not advertised publicly, Mapisa-Nqakula said.
The parties later agreed on an out-of-court settlement in May 2012, according to papers seen by the Saturday Dispatch.
However, no settlement has been reached and for years AdoAir has been unable to get a satisfactory answer from the ministry.
Attorney for Mabandla and Olulade, David Kahn, said they had launched a fresh round of litigation to force the national Department of Defence to pay damages or honour the contract.
Defence spokesman Siphiwe Dlamini yesterday denied any knowledge of a contract or any obligation to pay any settlement.
“There was never any contract valued at R826975162.00 signed nor any out-of-court settlement ever reached between Ado Air and DOD,” Dlamini said in response to a list of questions by the Dispatch.
The newspaper is in possession of a contract confirming the deal signed by Lieutenant-Colonel Mahlage Nape, in charge of the procurement division in the defence department.
Kahn yesterday said: “We are going back to court because we believe we have a fairly good case against the state. These people have shown no interest in settling. They have cancelled one meeting after another and I don’t want my client to incur further legal costs.”
Kahn said they were looking for nothing less than R233-million plus interest in settlement if the department is not willing to validate the R826-million contract.
“The money is for damages and cost of leasing of the aircraft. The papers are already in court – we just have to go and get a trial date.”
In reply to Dlamini’s comment Kahn said: “The department talks nonsense because they have litigation pending.”
On Tuesday, the lawyer also called on a member of the portfolio committee on defence and military veterans in parliament Dumisani Gamede to intervene.
“As this matter has dragged on for a considerable matter of time our client would like to bring it to finality as a matter of urgency,” Kahn wrote adding he looked forward to hearing a response from Gamede.
Gamede yesterday told the Dispatch the committee’s hands were tied as it was an operational matter and that only the secretary of defence could deal with it as the accounting officer.
Olulade has been described as a major business investor and contributor to the SA economy.
Battle over Zuma jets
Prince Sivile Mabandla of the AmaBhele nation in Alice and business partner Adegboyega Olulade of AdoAir Aviation claim they were set to earn more than R800-million after successfully bidding for the contract in 2010.
AdoAir Aviation was to supply two luxury Embraer Linaege 1000 jets equipped with sleeping quarters, computer and satellite communication services and a conference cabin with space for six people.
The contract was for a period of five years ending March 31 2015 and the jets would also be used by Zuma when his presidential jet, Inkwazi, underwent maintenance, the department said at the time.
The deal, however, fell through when former Defence Minister Lindiwe Sisulu declined to sign the lease agreements, saying the contract had received adverse legal findings from the department’s lawyers.
On July 1 2011 the department instead took delivery of a Boeing business jet and Bombardier Global Express XRS with a different aviation company.
Newly appointed Defence Minister Nosiviwe Mapisa-Nqakula argued in court papers filed in the Pretoria High Court that the contract was invalid and unenforceable and contravened the Public Finance Management Act.
The contract did not meet Treasury regulations and was not advertised publicly, Mapisa-Nqakula said.
The parties later agreed on an out-of-court settlement in May 2012, according to papers seen by the Saturday Dispatch.
However, no settlement has been reached and for years AdoAir has been unable to get a satisfactory answer from the ministry.
Attorney for Mabandla and Olulade, David Kahn, said they had launched a fresh round of litigation to force the national Department of Defence to pay damages or honour the contract.
Defence spokesman Siphiwe Dlamini yesterday denied any knowledge of a contract or any obligation to pay any settlement.
“There was never any contract valued at R826975162.00 signed nor any out-of-court settlement ever reached between Ado Air and DOD,” Dlamini said in response to a list of questions by the Dispatch.
The newspaper is in possession of a contract confirming the deal signed by Lieutenant-Colonel Mahlage Nape, in charge of the procurement division in the defence department.
Kahn yesterday said: “We are going back to court because we believe we have a fairly good case against the state. These people have shown no interest in settling. They have cancelled one meeting after another and I don’t want my client to incur further legal costs.”
Kahn said they were looking for nothing less than R233-million plus interest in settlement if the department is not willing to validate the R826-million contract.
“The money is for damages and cost of leasing of the aircraft. The papers are already in court – we just have to go and get a trial date.”
In reply to Dlamini’s comment Kahn said: “The department talks nonsense because they have litigation pending.”
On Tuesday, the lawyer also called on a member of the portfolio committee on defence and military veterans in parliament Dumisani Gamede to intervene.
“As this matter has dragged on for a considerable matter of time our client would like to bring it to finality as a matter of urgency,” Kahn wrote adding he looked forward to hearing a response from Gamede.
Gamede yesterday told the Dispatch the committee’s hands were tied as it was an operational matter and that only the secretary of defence could deal with it as the accounting officer.
Olulade has been described as a major business investor and contributor to the SA economy.
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