Department being sued for millions

The Gauteng department of infrastructure development is facing legal claims of more than R230-million, most of them for failing to pay money it owes.

The department admits its failure to pay its debts in its response to an application by Jack Bloom, a DA member of the provincial legislature, made under the provisions of the Promotion of Access to Information Act.

The department is responsible for building and maintaining public schools, hospitals and housing projects. According to the department, of the 45 claims, 27 have been paid at a cost of almost R8-million and three have been dismissed.

The highest claim - for more than R41-million - was by construction company Group Five. The claim has been settled but the amount paid was not revealed.

The department also faced a R3-million defamation claim against its former MEC, Faith Mazibuko, and Premier Nomvula Mokonyane.

The claim was subsequently settled for R350000.

The outstanding claims, some of which are still in litigation, amount to about R223-million.

• The department offered R16-million to Rent Works Africa after running up a R30-million rental bill for office equipment. The company chose to go to court; a trial date has yet to be allocated;
• Country Cloud Trading claimed just over R20-million when the department cancelled its contract, allegedly illegally.

The department then allegedly paid a "remobilisation fee" to another company that was in a joint venture with Country Cloud.

The department sued Country Cloud for not adhering to "reasonable safety measures" in carrying out its obligations and won the case. Country Cloud has applied for leave to appeal.

Bloom blamed "incompetence" and "poor contractual arrangements" for the department's woes.

At the time of going to press the department had not responded to questions put to it by The Times.