A Gauteng construction company, Tebello Construction, is taking on Momentum Insurance in the Gauteng High Court (Pretoria) for the latter’s repudiation of a R3m theft claim.

Rapport reports that Tebello submitted an insurance claim on the basis that the so-called ‘construction mafia’ plundered its offices and stole equipment.

But Momentum argues that the loss was a civil dispute due to ‘breach of contract’. 

The court is now called upon to ascertain whether the loss fell within the theft coverage of the insurance policy.

Tebello’s André van Rooyen says in court papers it was busy with fibre optic operations in KZN and appointed a sub-contractor, Straibo Constructions, in Durban.

A ‘business forum’ was upset with Straibo for allegedly not paying certain fees.

The ‘business forum’ then visited the premises of Tebello in Centurion and removed computers and other equipment to the value of R3m.

Tebello says in its court papers the argument of a ‘civil dispute’ cannot hold true as it was not Straibo which removed its equipment, but the so-called construction mafia with whom Tebello had no commercial relationship.

President Cyril Ramaphosa announced in his Opening of Parliament address last week that the curtailing of mafia activities in the construction industry would be one of the priorities of the seventh administration.

Full report in Rapport (subscription needed)