- Money paid to two Chinese companies for breach of contract
- The breach was a DISS goof in an instruction to WUC
- Analysts say cash-strapped WUC will suffer more financial stress
This is gleaned from a copy of “notification of payment” that a top local bank has submitted to the trust account of Tengo Rubadiri Attorneys, which was one of the legal firms that represented one of the two Chinese companies.
The document, “WUC Court Order,” shows that after the bank credited the trust account of the two companies’ lawyers, WUC sent the copy of notification of payment to confirm that it had complied with the court order compelling it to do so.
The settlement puts an end to a lawsuit over a breach of contract signed by WUC and the two Chinese companies. Insiders say the out of court settlement has resulted in more financial challenges at the debt-ridden utility. The matter arose from a controversial instruction of the Directorate of Intelligence and Security Service (DISS) for WUC to cancel its contract with the two companies that DISS considered a security threat to the country.
The two companies consequently approached the High Court for redress. Following a protracted legal battle, the parties reached a court of settlement agreement that was fulfilled when WUC paid the two companies P112 million. “The contract that the parties had entered into arising from the invitation to tender that was published by Water Utilities Corporation bearing reference, essentially, Design, Supply, Treatment Plant-Tender No. WUC 015 (2018) is here by terminated,” said Justice Tebogo Tau of the Lobatse High Court.
“The Respondent (Water Utilities Corporation) agrees to pay the sum of P112 000 000.00 into the Trust Account of Tengo Rubadiri Attorneys on or before 1st June 2020, in full and final settlement of all contentions between the parties relating to the Invitation to Tender that was published by the respondent bearing the reference, essentially, Design, Supply, Treatment Plant – Tender No. WUC 015 (2018).”