Fleet giant in BEE dispute

An Eastern Cape fleet management giant faces court action by its black economic empowerment partner for allegedly using them as a front in a state contract.

An Eastern Cape fleet management giant faces court action by its black economic empowerment partner for allegedly using them as a front in a state contract.

The contract with the Eastern Cape government amounted to about R731 million.

The BEE partner, Kei Fleet Solutions (KFS), were seeking court intervention on issues relating to alleged fronting, management interference and non-compliance of contract.

The respondents are Fleet Africa, FleetAfrica Eastern Cape (FAEC) and the MEC for transport, Thobile Mhlahlo.

In an affidavit KFS's director Mkululi Pakade accused Fleet Africa of sidelining KFS and taking control of all management functions within FAEC.

FleetAfrica lodged an application for security of R180000 from KFS to cover legal costs if KFS lost. - Sapa

X