Safa taken to court for failing to settle R1m security bill

Russell Paul
Russell Paul

The SA Football Association (Safa) has seemingly registered another point to its tally of legal woes.

Safa's security service provider Helios Security and Risk Management CC has dragged the football governing body to the South Gauteng High Court after they allegedly failed to pay them almost R1m for services rendered since October 18 last year.

The final cash demand by the Cape Town-based company will most probably balloon to more than R1m due to interest and legal costs the company was demanding from Safa.

The company was praying for the court to grant it a default judgment against Safa.

If the judgment was granted, Safa would be blacklisted and wouldn't be able to apply for credit from any financial institution and will also have some of their assets attached and sold to offset the debt.

In the papers seen by Sunday World, Safa, which was represented by R De Bruyn, entered into an agreement with Helios in July 2014 to render security services at their headquarters in Nasrec, Joburg for three years.

The company said when the contract expired, Safa entered into month-to-month extension contract with them but allegedly failed to pay for their services. They were supposed to have paid them just over R176,000 for five months - from October to February.

"The defendant has breached the agreement by failing to make payment of the contractual fee from October 2018," read the papers.

The papers show that the company cancelled the contract on February 5 this year, after the Danny Jordaan-led body allegedly ignored a letter of demand sent to them on January 22.

"As at the end of February 2019, the total amount of R883,602 is due and owing. Despite the demand, the defendant refuses, fails or neglects to pay the amount of R883,602.

The plaintiff prays for the judgement against the defendant as follows: confirmation of the cancellation of the contract, payment in the amount of R883,602, interest of 10,5% from date of demand and costs of an attorney-client scale, plus VAT thereon," read the papers.

In the letter written to Safa by the company's lawyers Swartz Hess Attorneys on January 22, Helios indicated that it rejected Safa's proposal to settle the debts in monthly instalments and said it would not be held liable for any lapses in security and safety of the organisation.

"We can confirm that our client has previously rejected a proposal by Safa to pay the outstanding amount in instalments.

"We would like to furthermore place on record that any negative consequences ensuing as a result of your non-compliance with our clients's demands, would be as a result of your failure to honour your commitments and therefore our client is not at fault," reads the letter.

Safa CEO Russell Paul said: "We are engaging with the security company in order to resolve the matter."

Helios' lawyer Mark Hess had not responded to questions at the time of going to print.

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