A fuel station franchise manager has been ordered to pay the national parent company almost R5-million.
Phumlani Nene, of Mdantsane, and his Firefly Investment 154 are in hot water with Total South Africa after a 2009 agreement went sour three years ago.
Total approached the Bhisho High Court to ask that it order Nene and Firefly to pay back the capital amount, as well as interest on fuel and lubricants, totalling R4.9-million.
As part of its business model, Total leases immovable property to approved operators, who then run the filling stations.
According to court papers, on March 2 2009, Nene, acting on behalf of Firefly Investment as the sole director, completed and submitted a written application for a credit facility with Total. This was to enable Firefly to purchase fuel and lubricants from Total on an ongoing basis. The deal was signed two months later.
The garage in question is located at NU6 Mdantsane, on the Qumza Highway.
The partnership ran smoothly until 2012, when Firefly began falling into arrears. Between February and November of that year, the invoices mounted until the debt reached the capital amount.
An amount of R4.3-million is owed for fuel sold and delivered, R306469.26 for rentals in arrear, R83050.51 for lubricants sold and delivered and R187922.56 for utility fees.
In his founding affidavit, Zeenat Cajee of Total said the agreement was cancelled on August 15 2012.
“ has failed, neglected or refused to make a payment to ,” Cajee said.
The matter was in court unopposed. In his heads of argument on behalf of Total, advocate Charles Wood said his client’s legal fees also ought to be paid.
“As per application for credit facilities and the dealership agreement, Firefly Investment agreed that it would be liable for legal fees, including collection commission and tracing fees,” Wood said.
Last week, Judge Nozuko Mjali granted an order in terms of the draft order presented by Wood.
She said: “Firefly Investment and Nene, jointly and severally, the one paying the other to be absolved are to pay the sum of R4.9-million”.
They were also ordered to pay interest on fuel and lubricants, rent and utilities, as well costs of the application. — siyab@dispatch.co.za
Mdantsane garage told to cough up
Phumlani Nene, of Mdantsane, and his Firefly Investment 154 are in hot water with Total South Africa after a 2009 agreement went sour three years ago.
Total approached the Bhisho High Court to ask that it order Nene and Firefly to pay back the capital amount, as well as interest on fuel and lubricants, totalling R4.9-million.
As part of its business model, Total leases immovable property to approved operators, who then run the filling stations.
According to court papers, on March 2 2009, Nene, acting on behalf of Firefly Investment as the sole director, completed and submitted a written application for a credit facility with Total. This was to enable Firefly to purchase fuel and lubricants from Total on an ongoing basis. The deal was signed two months later.
The garage in question is located at NU6 Mdantsane, on the Qumza Highway.
The partnership ran smoothly until 2012, when Firefly began falling into arrears. Between February and November of that year, the invoices mounted until the debt reached the capital amount.
An amount of R4.3-million is owed for fuel sold and delivered, R306469.26 for rentals in arrear, R83050.51 for lubricants sold and delivered and R187922.56 for utility fees.
In his founding affidavit, Zeenat Cajee of Total said the agreement was cancelled on August 15 2012.
“ has failed, neglected or refused to make a payment to ,” Cajee said.
The matter was in court unopposed. In his heads of argument on behalf of Total, advocate Charles Wood said his client’s legal fees also ought to be paid.
“As per application for credit facilities and the dealership agreement, Firefly Investment agreed that it would be liable for legal fees, including collection commission and tracing fees,” Wood said.
Last week, Judge Nozuko Mjali granted an order in terms of the draft order presented by Wood.
She said: “Firefly Investment and Nene, jointly and severally, the one paying the other to be absolved are to pay the sum of R4.9-million”.
They were also ordered to pay interest on fuel and lubricants, rent and utilities, as well costs of the application. — siyab@dispatch.co.za
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