Wednesday, November 11, 2009

Low cost housing company sues government over slow payments

Sea Kay Holdings has turned to the courts for assistance because of slow and delayed government payments. (from IOL)

A multimillion-rand claim for payment has already been lodged by the Sea Kay-led Ibuyile Development Consortium in the Western Cape High Court against the government for work undertaken in the N2 Gateway project.

Gerry Holtzhausen, an executive director of the listed affordable mass housing construction company, said yesterday that documents were also being prepared for a claim of up to R100 million related to 14 housing projects in Gauteng. It is expected to be lodged at the South Gauteng High Court by next week.

Holtzhausen said Sea Kay's board had to resort to court action in terms of its fiduciary duty to shareholders.

"It's a good business if only government paid," he said.

Sea Kay has also requested an urgent meeting with Human Settlements Minister Tokyo Sexwale in an attempt to resolve the disputes outside court.

Holtzhausen said an expert that it had appointed to assess its N2 Gateway project claim had arrived at an amount of just over R133m, including interest, that was claimable.

There had been a response to its Western Cape court action involving a proposed mediation process to prove its two-year-old claim. A settlement was the key to unlocking the door to it resuming work on the project.

No comments: