Developer sues municipality over R18m tender
A businessman awarded an R83m tender by the Raymond Mhlaba municipality to construct an office park is suing the council for R18.6m.
The council allegedly failed to sign a service level agreement (SLA), which would have paved the way for Osher Properties to solicit funding and begin with the project.
A Daily Dispatch report notes owner Piko Namba was awarded the tender in November 2016, but the company says it has had been sent from pillar to post since, whenever it tried to get the municipality to sign the SLA.
The unsigned SLA states the company will develop the office park, then lease it to the municipality for 25 years, and that the lease agreement will be subject to renewal for another 25 years.
Namba’s company has approached the Eastern Cape High Court (Grahamstown) in a bid to force the municipality to sign the agreement.
Failing that, it wants the municipality to pay it R18.6m for loss of profit and third party services which, Namba says, it had already procured.
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