Department ‘owes events company R2.1m for services’

AN EVENTS company that organised a Mandela Day event in Limpopo in 2011 turned to the high court in Pretoria, claiming that the Department of Arts and Culture still owed it money for its services.

Lerato and Moloko Events Management CC said in court papers that it was still owed R2183000 – the money it paid to other service providers on behalf of the department.

The appointment of the events company in 2011 made headlines when it emerged that it was paid R3087093 – despite the budget being R2.1 million – by the national department.

Although the company claimed it had been shortchanged by more than R2m, Judge Sulet Potterrill on Tuesday ordered that the Limpopo Department of Sport, Arts and Culture had to pay the company

R1 447 800. The order was made by consent between the parties.

The company said in court papers that it had entered into a written agreement with the department to host the Mandela Day celebrations for an amount of slightly more than R3m. It did receive payment of this amount, but the acting head of the department at the time, Mabakane Mangena, asked them to render further services.

The company said the agreement was that the department would reimburse it. According to the company, it had to pay an additional R2.7m to various other service providers.

In spite of agreeing to now pay more than R1.4m to the company, as per court order, the department denied it owed anything.

It denied that it had asked the company to secure further services and that the department had orally agreed to pay for them.