State-owned broadcast signal provider has filed papers in defence of a lawsuit brought against it by Altech UEC.
Altech UEC has gone to court to get Sentech to provide it with 70 000 Nagravision Embedded Conditional Access keys, which will enable it to comply with a purchase order in which Sentech ordered 70 000 decoders for a total value of R31.8 million. The access keys are needed to allow Altech to complete the decoders.
Sentech awarded the tender to Altech UEC last May and subsequently placed an order for 70 000 satellite integrated receiver decoders. The decoders were meant to be delivered with encryption security as there had previously been security issues, says Altech UEC.
However, Sentech argues that no contract was ever entered into, and it cannot honour the deal, because this is a breach of National Treasury regulations and the Public Finance Management Act (PFMA). As a result, it says, it is under no obligation to provide Altech UEC with anything.
Sentech chairman Quraysh Patel says the entity is “defending the matter on the basis that we do not have a contract with Altech UEC” and has submitted its papers to oppose the application. The company is now waiting for a court date.
Risks taken
In Sentech's responding affidavit, the entity argues that a number of draft contracts went back and forwards between the parties, but no final version was ever signed.
Altech, however, argues that it had a prior business relationship with Sentech that dated back many years and was comfortable with going ahead with production without a signed contract, especially considering the tight deadlines imposed.
Altech UEC says in its court papers that it has spent more than R25 million gearing up for the production of the decoders. The electronics company says Sentech put the order on hold in April and will not provide it with the access keys necessary for it to finish the order and deliver the set-top boxes.
Sentech placed the order on hold, as it needed to comply with the PFMA and treasury regulations. However, Altech argues that it can not place production on hold without suffering material damages, especially as the decoders could not be sold outside of SA.
Altech UEC MD Rodger Warren says the company is examining Sentech's opposing affidavit.
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