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Home Affairs sued for refusing to pay R76m bill

By Amukelani Chauke | Nov 14, 2012 | COMMENTS [ 6 ]

AFTER years of unsuccessfully trying to negotiate payment of a multi-million rand bill, a disgruntled Johannesburg businessman is suing the Department of Home Affairs for refusing to pay him.

Otto Moswane, the chief executive officer of Double Ring, has since 2009 fought with Home Affairs over its refusal to pay his company R76-million and has now approached the Pretoria High Court.

Double Ring was appointed in 2006 to supply mobile offices. This enabled the department to send vehicles with internet connection to remote areas to allow it to process identity documents to the public on the spot.

At the centre of the dispute is the fact that Double Ring sourced internet bandwidth from a foreign company and the department claims that it was invoiced in US dollars while it believed services were provided locally.

Double Ring claims that the department knew, when signing the contract, that the bandwidth would be sourced from abroad.

The Double Ring lawsuit, and other legal claims, form part of several reasons why Auditor-General Terence Nombembe gave the department a qualified audit opinion for the 2011/2012 financial year.

The department is currently faced with R1.2-billion in pending legal claims, varying from tender disputes, civil and immigrants claims to vehicle collisions and personal injuries.

Mkhuseli Apleni, the department's director-general, said they would defend the case against Moswane.

Last year, the department paid a R2.27-billion settlement to JSE-listed ICT group Gijima after initially disputing the validity of a contract in which Gijima was in 2008 appointed to overhaul the department's ICT infrastructure.

COMMENTS [ 6 ]

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And people were cheering Dlamini_Zuma on about how well she ran the department?

Nov 14, 2012 10:28 | 0 replies

Lehido, how someone could cheers that woman is beyond me. She took DHA from the gutters into the sewerage tank. In her time DHA spent R33m to upgrade the refugee centre, Crown Mines, only for the surrounding business owners to get a court order to close it, as no ablution facilities were provided for the refugees, and they were doing their thing sommer in front of other businesses. The place is now a white elephant, and the refugees have to go to the Marabastad refugee centre.

Nov 14, 2012 10:43 | 0 replies

Everyone seem to be suing the governement these days and I think I should also. I am suing SARS R5 Million for delaying my R500 refund....when I paid mt taxes in time...

Nov 14, 2012 11:25 | 0 replies

Gijima was paid because it always sponsor anc campaigns. Just pay double ring.

Nov 14, 2012 11:29 | 0 replies

South Africa, always live with posibilities

Nov 14, 2012 1:50 | 0 replies

Horror Affairs please pay up

Nov 14, 2012 2:42 | 0 replies