ENGEN DEMANDS E2.6M FROM KUKHANYA

MBABANE - Kukhanya (Pty) Ltd, trading as Kukhanya Civil Engineering Contractors is back in court again.

This time, Engen Petroleum Limited is demanding payment from Kukhanya in the amount of E2 646 244.52 in respect of fuel supplied by the former.
According to Engen Credit Risk Manager Fatima Abader, Kukhanya allegedly breached a written bulk consumer agreement in terms of which Engen undertook to sell and deliver fuel and related products to the construction company.

Complied

Abader told the court that Engen fully complied with its obligations in terms of the supply agreement at the instance of Kukhanya which allegedly failed to effect payment of the fuel sold to it.
The credit risk manager submitted that despite demand, Kukhanya allegedly failed to remedy its breach resulting in Engen approaching the court for relief.

Agreement

She informed the court that the supply agreement was allegedly concluded on August 27, 2013 in Matsapha and it sought to regulate the purchase of fuel and related products by Kukhanya from Engen.
The veracity of these allegations is still to be tested in court.

Kukhanya is yet to file its responding papers. Engen is represented by attorneys from Robinson Bertram.

Abader submitted that as at February 28, 2019, Kukhanya was indebted to her company in the amount of E2 646 244.52.
She said on January 4, 2018 Engen made a demand in writing for payment of the money owed to it by Kukhanya.

Response

In response to the demand, on January 12, 2018, according to Abader, Kukhanya allegedly advised that it was experiencing problems in receiving payment from government and requested to be given until the end of February 2018.

Engen acceded to the construction company’s request only to the extent that it was given until the end of January 2018 to settle its account in full.
Abader said on April 6 last year Kukhanya indicated that it was making effort to secure payment from government which allegedly owed it a sum of E40 million.

The credit risk manager submitted that Kukhanya acknowledged its indebtedness and in an effort to reduce its indebtedness, paid various sums between July 12, 2018 and December 11, 2018 amounting to E800 000.

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