VLG Accounting and Tunimart, two subcontractors to Koloni Consulting Enterprise in its R35.5m Eastern Cape Health Department tender to supply PPE during the Covid-19 pandemic, have lost the chance to reinstate holds on Koloni’s bank accounts.

But a Daily Dispatch report says even as Judge Murray Lowe’s ruling against reinstating the hold on the bank accounts means there is no guarantee they will get the money they allege is due to them, the subcontractors still have a trial date this month to try to convince a court to hold Koloni accountable to pay them.

After their efforts to secure payment for their contribution to fulfilling the tender, VLG and Tunimart obtained an urgent anti-dissipation order in the High Court in February.

This compelled Absa, FNB and Capitec banks to hold an amount of R9.5m, equal to what the subcontractors say Koloni owes them.

The rule nisi order was granted without Koloni’s knowledge and the parties were due in court a month later for a full hearing of arguments on all sides to determine if the interim ruling should be made final.

However, in May the matter was removed from the roll and no order was made regarding the extension of the rule, effectively removing the block on the banks and entitling Koloni to deal with its funds as it wished.

VLG and Tunimart then applied for the reinstatement of the rule nisi, the application which eventually came before Lowe, who said such orders were always conditional upon confirmation by the court.

If there was no extension of the rule, and no date for the matter to be heard in future, ‘the rule must automatically lapse’ discharging the obligation on the banks and Koloni to comply with the original order.

The parties are due in court again on 21 September 2021.

Full Daily Dispatch report