Vivian Reddy facing R35m suit over building project
A construction outfit involved in prominent KZN businessman Vivian Reddy’s R4.3bn development in Umhlanga is suing the businessman for about R35m, according to the Sunday Times. A joint venture between WBHO and Sibonele Africa filed papers in the KZN High Court (Pietermaritzburg) demanding that Reddy pay R34.4m plus interest in terms of a personal surety he signed late last year.
The companies say they are owed the money for work on Reddy’s Oceans Umhlanga development, where work stopped in October. The report says that if judgment is granted against Reddy and he is unable to pay, it could result in the forced sale of his assets or sequestration.
In an affidavit, WBHO MD Craig Jessop said: ‘The debt is undisputed, due, owing and payable.’
He said it was for work done and completed and that the necessary certificates had been issued and approved by Oceans’ principal agent. Because of non-payments and a debt of R75m, WBHO suspended work last year on a development due to comprise two residential towers, a shopping mall and a hotel.
In early December, Reddy entered into a ‘repayment’ agreement with the joint venture and bound himself as surety. Jessop said R30m and R10m had been ‘paid timeously’ but the balance of R34.4m, due on 15 March, remained outstanding.
Reddy denied this and said dozens of flats, which were selling for between R2.5m and R50m, had been sold.
He said demand for the apartments was ‘still very strong’. He promised that construction would soon ‘steam ahead’. Attorney Peter Barnard, for WBHO, confirmed that the application papers had been served on Reddy. A notice of opposition was filed on Friday, he said.
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