Square One confident of vindication

By Nicola Mawson, Contributing journalist

Johannesburg, 18 Jun 2009

Square One has filed affidavits in response to claims by Agang Cabling Solutions that it is owed money, and is confident it will be vindicated, says CEO Craig Alexander.

The affidavits have yet to be heard in court and a date has not yet been set. He says once the company is vindicated, it will decide what to do going forward.

Agang Cabling Solutions CEO Deon du Plessis says he has received Square One`s affidavits and the matter is proceeding to court.

Du Plessis says Square One owes him close on R1 million for work he had done for it. In addition, Square One had offered to purchase Agang, through subsidiary Structured Networks, since renamed Structured Infrastructure Solutions. However, the offer did not materialise, according to Du Plessis.

Du Plessis previously said the matter had dragged on for about 18 months, and seven months after the agreement to sell Agang, no paperwork had been forthcoming. "When I asked how far the acquisition was, no one could tell me."

Not us

Square One has denied it owes the company money, saying the deal was between Structured Networks and Agang, and did not affect it.

Lawyers for Square One, in a letter, said the liquidation application was "vexatious" and any claim would be opposed, as Square One was solvent. In its latest results for the year to December, Square One said it had cash and cash equivalents of R10 000. It generated R2.4 million from operating activities.

The payment issue, which arose in December, appeared to be based on invoices, said the lawyers. But further inspection indicates the agreement was based on Square One`s takeover of Agang.

"It is further interesting to note that the amount claimed varies from time to time, not only in quantum, but also from a causation point of view."

However, the lawyers said, the test was one of solvency, and the company was solvent, even if the claim was due and owing. The lawyers said the claim was abusive and the matter would be "vigorously" opposed. "Square One should not be held to ransom and pay amounts which are not due, owing and payable."