IDC wins reprieve in fight over failed firm

John Tyler, a businessman seeking to claim R256-million in damages from the Industrial Development Corporation (IDC), suffered another setback this week in his long-running battle with the state finance institution.

On Wednesday, the Johannesburg High Court interdicted Tyler's company, Evertrade Medical Waste (EMW), and the master of the court from holding an inquiry to investigate the failure of EMW Operations.

EMW Operations had been co-owned by Tyler's EMW and the IDC. It processed medical waste through two plants, but it folded in 2005.

Dana du Plessis, the IDC's legal counsel, argued that EMW was "harassing and intimidating" the IDC to keep a finalised matter alive.

But Tyler said the state-owned institution wanted to hide criminal activity.

He said an insolvency inquiry would help establish howSolid Waste Operations won the deal to operate the plants after EMW Operations folded. He wanted to find out who was paid for this deal.

But the IDC argued that Tyler's request for the inquiry was just a fishing expedition for his damages claim. The IDC did not reply to queries.

Tyler said EMW Operations became the top medical waste company in the country, measured by the number of hospital beds it served.

The trouble began in 2004 when it needed working capital to service new contracts. Tyler said the company collapsed in 2005 because the IDC refused to lend it R7-million, which he argued was a breach of its shareholder agreement.

So EMW sued the IDC for damages of R256-million in 2008. The claim was dismissed by the high court in 2012.

But a year later, EMW resumed the case. This year, EMW approached the master of the high court to hold an insolvency inquiry, and it agreed to. The inquiry was due to start in Johannesburg last week, but this week's court order put a halt to it.