Port Elizabeth company Distinctive Trading – which received millions of rands during an IPTS spending spree more than five years ago – is suing the Nelson Mandela Bay municipality for R27m for developing a mobile application for the city’s beleaguered bus system.

The Herald reports Distinctive Trading was hired in May 2014 through oral and verbal contracts to build the application for R24m and then provide training to municipal staff for R8.4m.

But after only receiving just over R10m of the agreed amount split between two payments, the company filed court papers in May 2017 demanding that the municipality cough up a further R27m, which includes interest.

The municipality’s lawyer, Sureshni Moodliar, of Gray Moodliar Incorporated, has since requested the matter be struck off the roll as the claim was vague on details.

This, as Distinctive Trading was unable to supply evidence and answer questions posed to the company about work done on the application.

Moodliar stated in court papers that the particulars of the claim – mainly details on the oral contract – were also embarrassing.

But in court papers, Advocate William Mokhari SC argued that the municipality was hell-bent on frustrating Distinctive Trading and delaying in paying the company what was due to it.

Eastern Cape High Court (Port Elizabeth) Judge Fatima Dawood gave Distinctive Trading two weeks from 21 February to amend its particulars of claim and provide the requested information to Moodliar.

Full report in The Herald (subscription needed)