KSA asks court’s help

2019-02-13 15:15

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Security company Khuselani Security and Risk Management (KSA) is back in the high court — this time challenging the cancellation of a contract with the KZN Treasury Department based on “unsubstantiated” allegations of fraud against it.

The company on Tuesday brought an urgent application in the Pietermaritzburg high court to set aside the cancellation of the contract.

Since KZN Treasury is opposing the application and filed its papers late, no order was granted.

A date has yet to be arranged for the matter to be heard on an urgent basis.

The contract was for KSA to provide five armed security officers to protect Treasury officials at the Trizon Towers Building in Chief Albert Luthuli Street from January to March, costing R75 700 a month.

It was awarded in January and terminated that same month.

Treasury said in a letter to KSA that the cancellation is because “it has come to the light of the department that serious fraudulent allegations were laid” against the company.

But its managing director, Mahomed Yacoob, has in court papers denied that KSA has made itself guilty of any “fraudulent conduct nor has any fraudulent conduct been established against it in a court of law”.

Yacoob added that if the cancellation is accepted then it means that a government department can simply make decisions based on unsubstantiated allegations against a supplier, which would have a knock-on effect in respect of future tenders that KSA wishes to consider for services to government departments.

He said if the termination of the contract is accepted by the court then it would point to an acceptance that KSA is guilty of corrupt or fraudulent conduct without the allegations being established or fully investigated and confirmed.

Yacoob said that KSA performed its obligations in terms of the agreement by deploying the armed security officers on January 24.

The termination letter was received six days later.

He added that KSA then wrote back to Treasury saying that the termination letter was “unlawful, premature and invalid”.

Yacoob said that there is no allegation that KSA committed any corrupt or fraudulent act during the bidding process or execution of the contract between it and Treasury.

Neither did any official or other role-player commit any corrupt or fraudulent act during the bidding process or the execution of the contract.

He said that if the guards do not maintain their presence at the building then the staff will be at risk because they will not have any protection.

In addition, KSA will suffer harm if the order is not granted because it has already incurred all the training and administrative costs in respect of the guards.

Also, the five guards will lose their jobs.

Yacoob also said that KSA has budgeted for the income from the contract in its total budget and in order to meet its expenses in its total budget, the income derived from this agreement was incorporated.

“The sudden termination of the agreement and the loss of income will thus have a knock-on effect for the company as a whole,” he said.

Read more on:    pietermaritzburg

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