Judge grants appeal in pay row
THE Department of Economic Development, Tourism and Environmental Affairs was granted the right to appeal a against a previous court decision compelling it to honour a “promised” payment to an events company.
Acting Durban High Court Judge Yvonne Mbatha made the decision on Friday.
The matter related to the department’s last-minute decision to withdraw R6 million for a biking event staged by Nkosin Projects and Marketing last month.
Nkosin Projects learnt a few days before the start of “Light the Fire”, part of the South Coast-based Africa Week, about the change of heart.
The reason was “financial constraints”. The department agreed to the funding in March.
Payment would be in two instalments: one before the event and the other after the company produced its close out report.
With the event thrown into disarray due to lack of funding, and many contracted service providers threatening to pull out of the extravaganza, Nkosin Projects made an urgent High Court application.
Judge Mbatha granted the applica- tion, which appeased the organisers and service providers alike, and the event went ahead as planned.
In granting the application Judge Mbatha said she realised that Nkosin Projects initially brought an urgent application and would have not afforded the department enough time to raise an adequate defence.
The judge said her ruling would help other departments that raised financial constraints, in similar matters, in their defence.
Sinethemba Dhlomo, project manager of Nkosin Projects, said she had been putting out fires as the company’s creditors had been pressing for payment. She said the funds delay was ruining her company. “We’ve lost deals and been unable to pay wages.”