Anderson Scanning Technologies (AST), which has been placed in provisional liquidation, has finally given up its battle against Gijima to have its premises and staff returned to it and will not fight the final liquidation.
The company had been involved in a dispute with JSE-listed Gijima about a 10-year contract that Gijima won from the Department of Rural Development and Land Reform. It sub-contracted scanning of documents for 10 deeds registries, as part of a project known as Vulindlela, to AST.
Gijima has claimed publicly that AST did not perform under the deal and that it had to step in to deliver to the department. It also said it had taken a write-down of about R160 million after writing off advances it paid out, which Anderson used for working capital and equipment.
AST hit back, accusing Gijima of hijacking the company and taking over its equipment, which has left it in an "invidious position" as it incurred damages daily. AST also tried to claim damages of R184 million from Gijima.
Deep in debt
However, AST will now cease to exist after South Gauteng High Court judge Caroline Heaton-Nicholls found it was indebted to Gijima, was unable to pay its debts, and the only business it was conducting - the Vulindlela contract - no longer existed.
Gijima took over running the Vulindlela contract after claiming AST was unable to deliver on its mandate. AST, however, argued the deal was repeatedly extended beyond its initial scope without the amount it was paid being increased. It blamed its financial position on Gijima and argued its company and staff were hijacked.
However, Heaton-Nicholls said AST had failed to make a case to have the premises, equipment and staff returned to it, and dismissed this counter-application. CEO Andrew Anderson argues Gijima "hijacked my company and got away with it".
Heaton-Nicholls set down the final liquidation for 3 March. Anderson says he will not oppose the application any further as he has run out of money and has no option but to give up. "I don't have the money anymore."
Anderson says the ruling means the demise of yet another family-owned business. Gijima has not responded to a request for comment, but previously stated that none of Anderson's claims are based on fact.
Gijima CEO Eileen Wilton said Anderson was happy to let Gijima step in to run the contract, and was considering exiting.
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