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.

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Inside News24

Traffic Alerts
There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.