MITTAH SEPEREPERE CONVENTION CENTRE
THE DIRECTORS of Umfana Enterprises CC, Silver Solutions (trading as Bothale Communications Joint Venture) and International Convention Solutions CC (ICS) have washed their hands of the exorbitant rates and taxes bill that now stands at over R9 million.
This money is owed by the Mittah Seperepere Convention Centre for water and lights.
In court papers, the companies insist that they have been running the convention centre “very well” since 2012 and that they have no obligation whatsoever to pay the water and lights expenses.
“We are not unlawful occupiers.”
Their legal representatives stated that the companies were complying with the service level agreement.
“The directors deny that they are contractually obligated to pay for municipal services or are liable for any municipal accounts to date.”
Counsel for the defence indicated that the convention centre was occupied by the Mittah Seperepere Convention Centre (MSCC), through an agreement it had concluded with the Northern Cape Economic Development Trade and Investment Promotion Agency (NCEDA), after the first service level agreement had lapsed in 2012.
In correspondence in 2014, the shareholders of ICS, Clarissa Carstens and Tsholo Wesi, had urged the acting CEO of NCEDA at the time, Johan van Schalkwyk, to refrain from threatening to close down the convention centre.
Carstens and Wesi advised that they had not received payment and that they were maintaining the venue without being remunerated and claimed that they furnished all relevant financial information as required.
“We also need to mention that events are hosted successfully without the help of yourselves, which is an outstanding performance from our side. We have requested several interventions and nothing has happened.”
Their legal representatives pointed out that the joint venture was the only events management company in the Northern Cape that was capable of arranging and managing functions of the “magnitude that the convention centre was designed to host” where over 150 events were hosted for provincial government.
They added that the Northern Cape government had booked events to be hosted by the MSCC at the convention centre for 2017 along with a list of upcoming bookings that had to be catered for.
“MSCC has an agreement with NCEDA that government-related events will be hosted at a 50 percent discounted rate for venue hire. It is a quid pro quo for its use and enjoyment of the convention centre. MSCC provides employment to 11 permanent staff members and up to 150 casual workers and was never called upon to make payment, in any shape or form, for its occupation of the centre or for water or electricity consumption.”
MSCC also provided the convention centre with its own equipment to the value of R5.2 million.
“The Office of the Premier provided MSCC with bridging finance to host the Northern Cape Brics expo and international trade and tourism conference at the convention centre from in July 2016. The MSCC occupies and uses the convention centre in terms of a tacit agreement.”
The directors stated that the convention centre achieved its purpose “entirely as a result of the blood, sweat and tears of the joint venture and MSCC”.
The defence pointed out that, since 2012, NCEDA had failed to transfer the management of the convention centre to a permanent management agency.
“The joint venture is the preferred service provider for all government departments and its subsidiaries hosting events at the convention centre. The joint venture received R165 000 per month from the NCEDA. If there was anything sinister about these payments, NCEDA must explain why we were not entitled to these payments. NCEDA has sidestepped this very issue.”
Counsel denied that the directors had collected and kept any money contrary to the provisions of the Public Finance Management Act.
“Had it not been for the joint venture and MSCC, the convention centre would still be an empty building and would not have hosted a single function and/ or created employment for the community. NCEDA was, from the very outset, not equipped to see to the proper utilisation and management of the convention centre. That was the core problem.”
The directors’ legal representatives refuted claims that they had unlawfully benefited in any way.
“The R990 000 that was paid, was a legitimate payment for the service that they rendered in terms of the valid and binding service level agreement. NCEDA agreed to the monthly fee and was happy to pay it. To now suggest that we unduly benefited is nothing short of disingenuous.”
Van Schalkwyk has questioned an alleged irregular R1.2 million payment made to Umfana, where he had queried why procurement processes were not followed.
Fairbridges Attorneys, on behalf of ICS, pointed out that their clients and their staff members were subjected to emotional stress due to job insecurity and the future of the contract.