GOVT ORDERED TO PAY FIDELITY OVER E170 000

MBABANE – Government has been ordered to pay Fidelity Security Services Swaziland (PTY) Limited a sum of E177 096.30.

The order directing the State to pay comes after the security company instituted legal proceedings for services it rendered in 2016.
High Court Judge Cyril Maphanga ordered government to pay the aforementioned amount with interest at a rate of 13.5 per cent accruing on the outstanding balance from time to time to date of final payment.

In the combined summons issued by Fidelity’s lawyers from Magagula & Hlophe Attorneys, the security company was demanding payment for its services provided, where the latter guarded the government weighbridges at Matsapha and Siteki.
The security company alleged that on June 1, 2015, it entered into a written agreement with the Government of Eswatini through the Ministry of Public Works and Transport for the provision of security services.

However, in an email annexed to the summons, government acknowledged its indebtedness to the security company further assuring that they were giving the matter the urgency it deserved.

“We appreciate that it has taken too long to reach a solution with regards to payment,” read the mail that was written by a lawyer representing government.
When the written agreement was entered into, the security company was reportedly represented by its Principal Executive, Malcolm Barlow-Jones, while government was represented by Nathaniel Dlamini.

It was alleged that Fidelity would provide at least two security guards at each of the premises in Matsapha and Siteki respectively.

Terms

It was further the terms of the agreement that the defendant (government) would remunerate the plaintiff (Fidelity) for the security services rendered in the sum of E16 099.54 per month in respect of each of the premises in the aforementioned places.
The cost for the monthly services according to the summons would be paid in advance and that any arrears would attract interest at the prime rate ruling at that point in time at two per cent.

“The plaintiff provided the aforesaid security services for the periods between August 1, 2015 to January 31, 2016 in the business of the defendant and duly delivered the invoices reflecting the agreed date,” read part of the particulars of claim.

Fidelity, in its claim, asserted  that in breach of the agreement between the parties, government failed to pay for the services rendered.
The breach, according to Fidelity, resulted in government terminating the contract.
Notwithstanding demand, government reportedly failed to pay the security firm the arrears in the sum of E177 096.30.
“The defendant is liable to the plaintiff for interest on the sums outstanding from time to time at the rate of 13.5 per cent per annum constituting the bank prime lending rate plus the additional two per cent in line with the agreement between the parties,” contended the plaintiff.
Meanwhile, during argument of one of the matters against the State, Minister of Finance Neal Rijkenberg disclosed that government had accumulated more than E3.5 billion in arrears (invoices for service rendered and goods supplied that has not been paid).
 “We are in a financial crisis. Road projects are on suspension (costing us more than E10 million per month), building projects have been stalled, suppliers are suing us and medical supplies are in short supply,” government submitted.

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