The Eastern Cape government will have to fork out more than R80-million in damages and interest to an East London-based firm of architects after a series of outrageous blunders by the provincial departments of health and public works.It is one of the biggest default judgments ever given against the provincial government. According to court papers, the public works department appointed Ikamva Architects in 2003 as the architectural consultants to oversee the R1.3-billion Frere Hospital upgrade.
An agreement was duly signed between the department and Ikamva to this effect. But shortly after being appointed by public works, the work was again advertised and another firm of architects was appointed to do the same work.
Ikamva said in court papers that this constituted a repudiation of the agreement and sued the department for R41-million in damages that it said it had suffered. as a result. This is the profit Ikamva said it would have enjoyed had the department not unlawfully repudiated the contract soon after awarding it.
With interest this will, by now, amount to more than R80-million.
In its defence, the public works department pleaded it had appointed Ikamva as the consulting architect and principal agent for the Frere Hospital upgrade and that an agreement was signed to this effect.
But, it said it realised the agreement was invalid because the department had no power to enter into it.
It denied that the act of appointing another service provider constituted a repudiation of the contract.
The health department, in turn, said it had appointed the Coega Development Corporation (CDC) as the implementing agent to oversee the upgrading of the healthcare facilities at the East London Hospital Complex, which included Frere Hospital.
It seems the CDC, unaware that public works had signed a contract with Ikamva, then advertised and appointed another service provider to oversee the project.
The health department says it was therefore clearly not liable.
Even more confusion followed once summons were issued when Ikamva sought the discovery of certain documents from the two departments. The departments failed to produce the documents and Ikamva was forced to bring an application to compel them to do so.
Finally, this week, Acting Judge Thembekile Malusi granted default judgment against the two departments for R42-million plus interest.
With interest, the departments will have to find R80-million out of the public purse to pay Ikamva Architects despite the firm never being given the opportunity to do the work for which it was contracted.
Advocates Gavin Dugmore and Izak Smuts, SC, instructed by Stirk Yazbek Attorneys argued the matter for Ikamva. Malusi said his reasons for the order would follow in due course.
Government in EC must pay R80m penalty
It is one of the biggest default judgments ever given against the provincial government. According to court papers, the public works department appointed Ikamva Architects in 2003 as the architectural consultants to oversee the R1.3-billion Frere Hospital upgrade.
An agreement was duly signed between the department and Ikamva to this effect. But shortly after being appointed by public works, the work was again advertised and another firm of architects was appointed to do the same work.
Ikamva said in court papers that this constituted a repudiation of the agreement and sued the department for R41-million in damages that it said it had suffered. as a result. This is the profit Ikamva said it would have enjoyed had the department not unlawfully repudiated the contract soon after awarding it.
With interest this will, by now, amount to more than R80-million.
In its defence, the public works department pleaded it had appointed Ikamva as the consulting architect and principal agent for the Frere Hospital upgrade and that an agreement was signed to this effect.
But, it said it realised the agreement was invalid because the department had no power to enter into it.
It denied that the act of appointing another service provider constituted a repudiation of the contract.
The health department, in turn, said it had appointed the Coega Development Corporation (CDC) as the implementing agent to oversee the upgrading of the healthcare facilities at the East London Hospital Complex, which included Frere Hospital.
It seems the CDC, unaware that public works had signed a contract with Ikamva, then advertised and appointed another service provider to oversee the project.
The health department says it was therefore clearly not liable.
Even more confusion followed once summons were issued when Ikamva sought the discovery of certain documents from the two departments. The departments failed to produce the documents and Ikamva was forced to bring an application to compel them to do so.
Finally, this week, Acting Judge Thembekile Malusi granted default judgment against the two departments for R42-million plus interest.
With interest, the departments will have to find R80-million out of the public purse to pay Ikamva Architects despite the firm never being given the opportunity to do the work for which it was contracted.
Advocates Gavin Dugmore and Izak Smuts, SC, instructed by Stirk Yazbek Attorneys argued the matter for Ikamva. Malusi said his reasons for the order would follow in due course.
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