CS Holdings has lodged an application for provisional liquidation for AST`s systems outsourcing services subsidiary, DTS.
The application, lodged at the Pretoria High Court yesterday, arises over a contractual agreement between CS Holdings subsidiary Getronics SA and DTS.
CS Holdings CEO Annette van der Laan says the dispute centres around R8 million outstanding from DTS for services performed by Getronics.
DTS is a joint venture between Absa and AST to provide outsourcing services to Absa as well as other companies.
"There is no reason why this outstanding sum of money has not been paid. I don`t have much further comment to make, except that it is now in the hands of the courts and AST will have no choice but to address and settle this matter," says Van der Laan.
AST executive chairman Gerrie de Klerk says AST disputes the figure quoted in the suit as well as salient dates and the nature of the contractual obligation between the companies.
"DTS had an agreement with Getronics. We gave notice on the contract and decided to let our DTS division provide its own services that Getronic had previously supplied. A dispute arose over money owing to Getronics and we stopped payment and requested that this matter be sorted out amicably," explains De Klerk.
He admits that a mistake made by the company is that a letter of demand was received from Getronic in December, which was not acted on timeously by DTS management.
De Klerk says while the figures and other points of the contract are under dispute, he would like to settle the matter amicably.
However, he is adamant that unless a less confrontational stance is taken by CS Holdings, he will let the matter run its course through the legal system.
"Strong-arm tactics will not benefit any party right now. Due process has to be followed, but I must stress that I am not in a sweat over this matter and things continue as normal here at the company," concludes De Klerk.
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