Valor IT has won an application to appeal a court ruling that it must pay Mantra Consulting R2.5 million, and will head to the Bloemfontein Appellate division next year to argue its case.
In May, the Gauteng South High Court, in Johannesburg, ordered Valor IT to pay Mantra R2.5 million with interest.
Mantra went to court to force Valor IT to pay it for services it had supplied to Valor. The issue hinges around a contract awarded to Valor IT to upgrade IT systems at the Companies and Intellectual Property Registration Office (Cipro).
The Department of Trade and Industry pulled the plug on Valor IT's contract last week, and work on the R153 million contract came to a grinding halt. Valor IT is set to take the DTI to court next Wednesday in a bid to have the contract declared valid.
A forensic investigation earlier this year into the awarding of the contract to Valor IT resulted in the suspension of Cipro CEO Keith Sendwe and CIO Michael Twum-Darko. The department has not responded to a query as to whether the two have been criminally charged.
Fighting back
Josias Molele, Valor IT chairman, says no date has been set for the appeal hearing yet, but he expects the matter will be heard next year.
Mantra's initial claim to the Johannesburg court was for a supply contract between it and Valor to be declared valid, and for payments of about R10.5 million to be made. The court ordered Valor IT to immediately pay R2.5 million and interest, and make representation as to why the balance should not be paid.
Valor IT had argued that a cheque it had sent to Mantra for R2.5 million was in full and final settlement of any debt. However, the court found that both parties had to be in agreement that the payment was the final one.
Mantra argued that it was not in agreement and based its argument on the fact that, although it had deposited the cheque, it was still owed more money.
Molele believes Mantra accepted the payment in full and final settlement when it deposited the cheque. He will argue this in court when the matter is heard. “If I didn't believe I had a case, why would I fight so much? I could just have walked away.”
Mantra CEO Abe Mbulawa says the fact that the matter is going on appeal works in his favour.
He explains that the company will have the opportunity to argue the entire outstanding amount, plus interest, and not just plead its case for the R2.5 million Valor IT was ordered to pay. “This will once and for all stop all the hullabaloo,” says Mbulawa.
In May, he said he was pleased the court had awarded the verdict in the company's favour. At the time, he was confident the balance of the outstanding amount would be paid.
Related story:
DTI cans R153m Cipro contract
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