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.”

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.
NEXT ON NEWS24X

Inside News24

 
ADVERTORIAL
Competition regulation for a growing and inclusive economy

ADVERTORIAL: The Competition Commission of South Africa is conducting advocacy work in the South African automotive aftermarket industry and has gazetted a Draft Code of Conduct for public comment.

/News
 

5 top leg exercises for men

Here’s our selection of the five best leg exercises that you can do in the comfort of your own home.

 
 

You won't want to miss...

WATCH: Pornhub is giving users free access to premium content this holidays
5 top leg exercises for men
10 best dressed men of 2017
How to open a beer bottle without an opener
Traffic Alerts
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

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.

Settings

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.