Wescoal in dispute with contractor

2011-03-14 12:59

Wescoal is involved in a dispute with one of its contractors, Sutha Civils, the listed coal mining company said today.

Wescoal “wishes to inform the market that a dispute has arisen with Sutha Civils, one of the contractors engaged to mine at Khanyisa Colliery,” it said in a statement.

Wescoal said it had investigated alleged irregularities involving Sutha within five months of appointing the contractor to mine the West Pit at Khanyisa Colliery near Kendal in Mpumalanga.

“No meaningful explanations were forthcoming from Sutha and the situation was exacerbated, until December 2010 when Wescoal removed Sutha from the Khanyisa property and operation in entirety,” the company said.

Business Day reported today that Sutha had laid a charge of fraud against Wescoal at the Krugersdorp police station for allegedly overstating tonnages of coal mined at Khanyisa.

“We categorically deny this – we are a company with integrity and ethical principles and in this case, a target of malicious intent,” said Andre Boje, CEO of Wescoal.

“Sutha’s intentions are malicious and have no grounds for success and Wescoal has therefore suspended any communication with Sutha.”

Wescoal planned to take legal action.

According to Business Day, Sutha on Tuesday wanted to apply in a Johannesburg court for the liquidation of Wescoal.

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