The national Department of Human Settlements has thrown down the gauntlet to listed mass affordable housing construction company Sea Kay Holdings over its multimillion-rand claim for work done at the N2 Gateway housing project in Cape Town.
The dispute is threatening to delay further stages of the project and increase costs.
Chris Vick, a special adviser to Minister of Human Settlements Tokyo Sexwale, said yesterday the department was impervious to attempts by the Ibuyile Development Consortium to mobilise public pressure for its court action for work undertaken on the N2 Gateway project.
Vick would not comment further because the matter was sub judice, but confirmed instructing state attorneys to "vigorously defend the court action as there is clearly no grounds upon which the claim is based".
However, Gerry Holtzhausen, the executive director of Sea Kay, the controlling and managing member of Ibuyile, said a draft agreement from the Western Cape government proposing settling the dispute through mediation or arbitration had been received.
Holtzhausen said the draft agreement ceded the claim against Thubelisha Homes to the Western Cape provincial government.
The section 21 company, set up by the department to facilitate housing projects, was declared technically insolvent earlier this year following the National Treasury's refusal to approve its full funding requirements.
Earlier this week, Holtzhausen confirmed that a multimillion-rand claim for payment was lodged by Ibuyile in the Western Cape High Court against the government for work undertaken on the N2 Gateway project and a claim of R100 million related to 14 housing projects in Gauteng was being prepared.
Holtzhausen said Sea Kay still had a substantial insurance claim outstanding for almost two years for damage caused on the N2 Gateway project. He stressed that the company tried to avoid court action because it was expensive.
A settlement was important to the province because it could unlock 1 800 units that Ibuyile still had to build, he said.
- Business Report
The dispute is threatening to delay further stages of the project and increase costs.
Chris Vick, a special adviser to Minister of Human Settlements Tokyo Sexwale, said yesterday the department was impervious to attempts by the Ibuyile Development Consortium to mobilise public pressure for its court action for work undertaken on the N2 Gateway project.
Vick would not comment further because the matter was sub judice, but confirmed instructing state attorneys to "vigorously defend the court action as there is clearly no grounds upon which the claim is based".
However, Gerry Holtzhausen, the executive director of Sea Kay, the controlling and managing member of Ibuyile, said a draft agreement from the Western Cape government proposing settling the dispute through mediation or arbitration had been received.
Holtzhausen said the draft agreement ceded the claim against Thubelisha Homes to the Western Cape provincial government.
The section 21 company, set up by the department to facilitate housing projects, was declared technically insolvent earlier this year following the National Treasury's refusal to approve its full funding requirements.
Earlier this week, Holtzhausen confirmed that a multimillion-rand claim for payment was lodged by Ibuyile in the Western Cape High Court against the government for work undertaken on the N2 Gateway project and a claim of R100 million related to 14 housing projects in Gauteng was being prepared.
Holtzhausen said Sea Kay still had a substantial insurance claim outstanding for almost two years for damage caused on the N2 Gateway project. He stressed that the company tried to avoid court action because it was expensive.
A settlement was important to the province because it could unlock 1 800 units that Ibuyile still had to build, he said.
- Business Report
No comments:
Post a Comment