Reddy to sue CCG for R28m

2017-05-24 06:00


CHAIRMAN of Edison Property, the developer spearheading the new mall development in KwaDukuza, Vivian Reddy is coming out guns blazing in a R28 million damages claim against the Concerned Citizens Group (CCG).
This follows an application brought before the Durban High Court in March to have work on the development halted. 

However, on April 21 the Court dismissed with costs, CCG’s application to stop construction of the mall.

Reddy has pledged that whatever damages he will be awarded by a court of law will be donated to local charities in iLembe.

According to a letter by the attorney’s acting on behalf of Reddy’s Double Ring Trading (DRT), the defamation suffered by DRT and the delay of the development resulted in DRT incurring costs amounting to R18 464 330,00 exclusive of VAT.

The attorneys’ letter further states that they have been instructed that in respect of the defamation allegation, DRT will be instituting a damages action for R10 million.

“For almost a year, a local group of ‘objectors’ led by Haroon Mohammedy, have placed every obstructionist obstacle in the way of this much-needed development that will eventually turn out to be the life-blood of a town that has been in limbo for decades.
“This has resulted in escalated costs running into millions of rands apart from impact of time delays to the project and the severe commensurate cost of price increases on the development,” Reddy said.

He said the consequences of the CCG’s application, which led to almost a year’s delay on construction of the mall, has delayed the employment of thousands of people in the region, directly and indirectly, during the construction period.
He further states that it has delayed the injection of millions of rands into the economy of the region in terms of purchases of materials and goods that will be made in the region during construction as well as delayed the earning potential and economic upliftment of hundreds of people during construction and after completion.
According to Reddy, financial contribution to the municipal coffers by millions of rands per annum which, he said, could have been used to improve service delivery has also been delayed.

Reddy reiterated that this claim for damages brings him no financial rewards or satisfaction, and has therefore embarked on an undertaking to distribute all damages awarded in a court of law to charities in the iLembe District.

“Some of the charities that are grappling with the ravages of unemployment and poverty have greatly welcomed this undertaking. Further, in response to our advert last week inviting local construction, designer and supply companies to participate in the mall project, we received over 80 requests for inclusion in the development,” Reddy said.

He confirmed that he has a full list of the ‘obstructionists’ and will access any further information required on the funders of these actions through the Access to Information Act.

In the meantime, the project has moved full steam ahead in an attempt to make up for lost time.

Speaking to the Weekly on Tuesday morning, CCG chairman Haroon Mohammedy said the group will vigorously defend any action that Reddy brings against the CCG and its members.
“The issues surrounding the development of the mall and the selling of the sports field are far from over. We will be pursuing the matter on various fronts. The CCG will issue a statement shortly with their further intent.”

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