Close This website uses modern features that are not supported by your browser. Click here for more information.
Please upgrade to a modern browser to view this website properly. Google Chrome Mozilla Firefox Opera Safari
your legal news hub
Sub Menu
Search

Search

Filter
Filter
Filter
A A A

Court to decide whether BEE partner can be removed

Publish date: 03 December 2018
Issue Number: 802
Diary: IBA Legalbrief Africa
Category: Litigation

The Gauteng High Court (Johannsburg) is set to decide whether a BEE partner can be removed from a consortium for failing to rake in enough tenders, says Rapport. Dr John Tembalikayise (TJ) Lupepe, a dentist turned construction magnate and chairperson of the company Mdali, is requesting the court to interdict the Portugese construction company MotaEngil Construction from appropriating its 49% shares in local BEE venture Mecsa for a nominal amount of R59. This is the amount Mdali paid for 59 of the 120 shares in Mecsa. According to court papers, Mdali’s role in the venture was to rake in R3bn worth of tenders by a deadline, which has been extended more than once. MotaEngil wants to take back Mdali’s shares for failure to meet this threshold, but Lupepe says in his affidavit that his company made good on the promises. He says his father was a ‘prominent struggle icon’ and that his expertise lies in getting business for Mecsa. Lupepe lists six tenders which he allegedly brokered, including the controversial incomplete Kimberley Psychiatric Hospital, two social housing projects and extensions of the Fourways Mall. MotoEngil disputes this, saying some of the contracts Lupepe claims are ‘signed’ are still in the tender process. Mdali argues if the BEE deal is nullified, it means that Mecsa has obtained several contracts since 2014 under the auspices of being an empowered company while this was not the case. Judgment in the interdict application is expected today.

Full report in Rapport (subscription needed)