AFROTIM AGREES TO PAY KWIKFORM SCAFFOLDING E1.5M

MBABANE – Afrotim Construction (Pty) Ltd has acknowledged its indebtedness to Kwikform Formwork and Scaffolding to the value of E1.5 million in respect of hired equipment.

In the agreement of settlement, which has been made a court order, it was mentioned that Afrotim Construction acknowledged the debt which was due and payable as at July 19, 2018.

The company confirmed that it had signed a credit application incorporating the surety with Kwikform Formwork and Scaffolding on August 10, 2017.
They accepted that they were still bound by the credit facility’s terms except in so far as there was a variation to the terms in relation to payments of the capital amount.

The precise amount owed was E1 534 868.13         
It was submitted that Afrotim Construction was incurring charges in respect of the equipment on hire from Kwikform Formwork and Scaffolding.

The owing company agreed to make a payment of E400 000 on or before September 7, 2018. It also acceded to make a subsequent monthly payment of E100 000 on or before October 30, 2018.
Further, it was agreed that Afrotim Construction would make a payment of E100 000 on or before the last day of the month until the owed amount has been paid in full.

“The parties agree that in addition to the repayment of the capital sum, all charges incurred in respect of the equipment hire from Kwikform Formwork and Scaffolding (should be paid) strictly on 30 days from presentation of statements,” reads the settlement agreement in part.

It was pointed out these payments would be made directly to the Kwikform Formwork and Scaffolding bank account, which was not disclosed. However, for the E400 000 and E100 000 instalments, the Boxshall – Smith Attorneys account held with First National Bank (FNB), would be used.   

“It is also recorded that should Afrotim Construction make payment strictly within 30 days, Kwikform Formwork and Scaffolding would provide a five per cent settlement discount in relation only to the hiring charges,” stipulated the agreement. 

It was also emphasised that should any of the tranches contained in the agreement not be made, the full amount, less any payments made, would immediately become due and payable.
Afrotim Construction also agreed to return some of the equipment in its possession so as to bring down the current hiring charges.

“This agreement shall be governed and interpreted according to the laws of Eswatini and the parties consent to the jurisdiction of the High Court of Eswatini,” read the court application for the agreement to be made an order which was stamped on September 26, 2018.

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