Firm fights move to end medical waste contract
KZN Health MEC Sibongiseni Dhlomo has been taken to court by Durban-based Compass Medical Waste Services over the termination of a multimillion-rand contract to dispose of body parts and hazardous waste from state hospitals and clinics.
The company has applied for an interdict in the KZN High Court (Pietermaritzburg) to prohibit Dhlomo from terminating the contract worth about R185m. The matter will be heard on 29 April, notes a Sunday Times report.
Compass, which has been the sole medical waste service provider to the province for 20 years was served with a termination letter dated 24 March, giving it a month's notice.
In his affidavit opposing the termination of the contract, Compass MD Ian du Randt says that if the interdict is not granted, Compass will be required to remove its services and personnel from hospitals and clinics throughout the province before 1 May, which, he says, will cause ‘extreme disruption’ to hospitals and clinics.
He points out that medical waste disposal is highly specialised. Compass is suing the department for R50m for allegedly breaching an agreement relating to a 2000 contract. The department is defending the lawsuit.
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