EEC opposing E100 000 lawsuit

MBABANE - EEC is opposing the E100 000 lawsuit filed against it by a sub- contractor which is accusing the former of alleged breach of contract.

Through its lawyers from Warring Attorneys, the Eswatini Electricity Company ( EEC) has since filed its notice of intention to oppose. EEC is yet to file its papers outlining why it is against granting of the order as prayed for by Zacro Investments ( PTY) Limited.

Zacro Investments ( PTY) Limited is further seeking an order staying investigations allegedly instituted by the Eswatini Electricity Company ( EEC) against it pending finalisation of the court case.

In his founding affidavit, the director of the company Zacro Investments ( PTY) Limited Henson Ngwenya informed the court that on or about August 2020, the applicant ( Zacro Investments ( PTY) Limited) entered into a service level agreement with the respondent ( EEC).

The applicant is also praying for an order for the termination of the service agreement entered into between the parties on August 1, 2020.

He submitted that among other terms, the material terms of the agreement were as follows; the applicant was to provide professional electrical services, provide electrical maintenance due to the expansion of network operations on a dynamic basis on the respondent’s part.

According to the applicant, it was also agreed that after it had provided the professional electrical services, it would submit an invoice for work done and EEC was to pay the invoiced amount within 30 days of submission of same to the project manager.

Ngwenya narrated that on March 229, 2021 at Nhlambeni, while employees of the applicant were carrying out their duties as per the agreement of the parties; two of its ( applicant) employees were injured by a police vehicle. He said pursuant to the accident, the two employees were taken to hospital and the applicant further reported the accident to EEC and to the relevant body in the Ministry of Labour and Social

Security.

These are allegations whose veracity is still to be tested in court and

EEC is yet to file its papers.

“After the applicant had reported the accident to the respondent, EEC through a letter dated April 13, 2021 suspended the applicant from doing work on its behalf,” averred Ngwenya.

He submitted that as per the letter of suspension, EEC suspended the applicant in order to carry out an investigation of the accident and a team was tasked to come up with a comprehensive report of the accident within 14 days period calculated from the date of the suspension.

Ngwenya brought it to the attention of the court that through a letter dated April 14, 2021, the applicant appealed the suspension with EEC to reconsider its decision to suspend the company ( applicant) and reverse same as it would allegedly cause irreparable harm to it.

APPLICANT

According to Ngwenya, the reason for the applicant to appeal the suspension included that Zacro Investments ( PTY) Limited allegedly provided all its employees with protective gear as per the standards and policies of EEC. He also averred that the accident was unfortunate and no fault could be apportioned to the applicant or its employees.

“The applicant felt that the suspension was a harsh punishment as an investigation into the cause of the accident could be carried out by a team even if the applicant was not suspended as there was no way the applicant could jeorpadise the investigation,” submitted the director of the applicant.

He also alleged that the applicant was allegedly never given the right to be heard before the suspension hence the rules of natural justice were breached, in particular Audi Alterman Partem Rule.

“The applicant is contractually inclined to service loans with financial institutions and other creditors hence the suspension would render the applicant incapable of servicing its loans which would expose him to massive lawsuit and breach of contract,” he argued.

Ngwenya alleged that EEC had breached the terms of the Service Level Agreement in that it was no more than two months since the suspension without any decision by the investigating team on the accident. He argued that there was in fact no indication when the investigation would be concluded; hence he reasonably feared that it might drag on for months to the applicant’s prejudice.

The matter is still pending in court and appearing for the applicant is Sabelo Mngomezulu of Mngomezulu Attorneys in Mbabane.

‘ ‘ Af ter the applicant had reported the accident to the respondent, EEC through a l etter dated April 13, 2021 suspended the applicant f rom doing i t s work on i t s behalf”