A Gauteng store has been given a go-ahead to attach the assets of the Gauteng department of social development to the value of R236m.
This came after the department yesterday failed to produce proper documents to stay the execution order granted by the South Gauteng High Court.
GP2 Power Foods was contracted by the department as part of the Food Bank service providers to give groceries to NGOs in the province.
The department stopped all payments to the service providers in 2018 on the arrival of new HOD Thembeni Mhlongo.
GP2 Power Foods attorney Khumbulani David Xiviti of Xiviti Attorneys said they would now attach the bank account and some assets of the department so that they can recover the R236m they are owed. "We received a default judgment in January this year and a warrant of attachment was issued, but the department decided to oppose the judgment," Xiviti said.
"They did not even have any documents to stand before the judge. I proposed a settlement but their attorneys refused.
"So we are going ahead with attaching the department's bank accounts and some of their assets."
Gauteng department of social development's assets to be attached
A Gauteng store has been given a go-ahead to attach the assets of the Gauteng department of social development to the value of R236m.
This came after the department yesterday failed to produce proper documents to stay the execution order granted by the South Gauteng High Court.
GP2 Power Foods was contracted by the department as part of the Food Bank service providers to give groceries to NGOs in the province.
The department stopped all payments to the service providers in 2018 on the arrival of new HOD Thembeni Mhlongo.
GP2 Power Foods attorney Khumbulani David Xiviti of Xiviti Attorneys said they would now attach the bank account and some assets of the department so that they can recover the R236m they are owed. "We received a default judgment in January this year and a warrant of attachment was issued, but the department decided to oppose the judgment," Xiviti said.
"They did not even have any documents to stand before the judge. I proposed a settlement but their attorneys refused.
"So we are going ahead with attaching the department's bank accounts and some of their assets."
Acting judge James Grant removed the case from the roll on procedural grounds, saying the order was still valid.
GP2 Power Foods said they were forced to close down last year and let go of 2,500 employees. CEO Dennis Rodgers said the arrogance of government in not paying for services rendered is destroying small, medium & micro enterprise businesses.
"They could have given us three months' notice about the cancellation of Gauteng Food Banks and we would not be in court today. I urge the government to reclaim the fruitless and wasteful expenditure directly from the HOD's pockets. We will be happy to take the matter to the Hawks, special investigating unit and Zondo commission," Rodgers said.