Two Bhisho government departments ordered by a court last December to pay more than R80-million in damages to a firm of architects, have returned to court to avoid payment.
The departments of public works and health were ordered by the Bhisho High Court on December 1 to pay Ikamva Architects after a dispute over a contract awarded to the firm in 2003 to oversee the R1.3-billion Frere Hospital upgrade.
Last week the two departments filed an urgent application to the court to appeal the ruling.
In the papers, the departments plead with the court to rescind acting Judge Thembekile Malusi’s default judgment which ordered them to pay Ikamva.
They also want the court to prevent the company from taking any action against them to recover payment.
However, their urgent application was turned down, with the matter now expected to be heard at a date yet to be decided by the court.
According to the court papers, the public works department appointed Ikamva Architects in 2003 as the architectural consultants to oversee the Frere upgrades.
An agreement was duly signed between the department and Ikamva to this effect.
But shortly after being appointed by public works, the contract was again advertised and another firm of architects was appointed to do the work.
In court papers Ikamva said this constituted a repudiation of the agreement and sued the department for R41-million in damages.
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 just more than R80-million, according to court papers.
Ikamva’s attorney Garry Stirk yesterday confirmed the two departments had filed for leave to appeal Judge Malusi’s December judgment, but would oppose the judgment as “there is no merit to them appealing” it.
Roads and public works spokesman Mphumzi Zuzile yesterday refused to comment on the matter.
In papers to court in December, the department said 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.
Health department spokesman Siyanda Manana also refused to comment.
In their court papers, the health department 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, advertised and appointed the second service provider to oversee the project.
The health department said it was therefore not liable. — asandan@dispatch.co.za
R80m damages claim back in court
The departments of public works and health were ordered by the Bhisho High Court on December 1 to pay Ikamva Architects after a dispute over a contract awarded to the firm in 2003 to oversee the R1.3-billion Frere Hospital upgrade.
Last week the two departments filed an urgent application to the court to appeal the ruling.
In the papers, the departments plead with the court to rescind acting Judge Thembekile Malusi’s default judgment which ordered them to pay Ikamva.
They also want the court to prevent the company from taking any action against them to recover payment.
However, their urgent application was turned down, with the matter now expected to be heard at a date yet to be decided by the court.
According to the court papers, the public works department appointed Ikamva Architects in 2003 as the architectural consultants to oversee the Frere upgrades.
An agreement was duly signed between the department and Ikamva to this effect.
But shortly after being appointed by public works, the contract was again advertised and another firm of architects was appointed to do the work.
In court papers Ikamva said this constituted a repudiation of the agreement and sued the department for R41-million in damages.
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 just more than R80-million, according to court papers.
Ikamva’s attorney Garry Stirk yesterday confirmed the two departments had filed for leave to appeal Judge Malusi’s December judgment, but would oppose the judgment as “there is no merit to them appealing” it.
Roads and public works spokesman Mphumzi Zuzile yesterday refused to comment on the matter.
In papers to court in December, the department said 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.
Health department spokesman Siyanda Manana also refused to comment.
In their court papers, the health department 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, advertised and appointed the second service provider to oversee the project.
The health department said it was therefore not liable. — asandan@dispatch.co.za
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