DU VAN WANTED E10.5M EXTRA FOR SASCO BUILDING - KWAKITSI

MBABANE – Du Van Developers allegedly wanted to be paid an extra E10.5 million for the SASCCO commercial building.

The construction company and government had allegedly agreed on E12.5 million. Du Van Developers is challenging the liquidation of Kwakitsi Investment as a subsidiary company of SASCCO. Kwakitsi investment is opposing the application stopping the final liquidation of the company.

According to Kwakitsi Investment Managing Director Grace Dludlu, she alleged that the cause of action between the parties involved failure to pay fees for the construction of the building in the Mbabane CBD behind the New Mall. “The first respondent (Du Van Developers) wanted to be paid a disputed E12 693 646.68 capital plus a further disputed exorbitant interest of E10 510 836.04 incurred in seven years,” alleged Dludlu.

Barely four months after the building was signed over to the Swaziland Government, the SASCCO’s subsidiary company, Kwakitsi Investments, has filed an application against Du Van Developers, and liquidator Paul Mulindwa.
Kwakitsi Investments is seeking an order that the claim of Du Van Developers be deemed to have been settled at E12.5 million as full and final settlement as per the agreement it entered with government on April, 18 2017.
They are further seeking an order directing that the appeal that was filed by Du Van challenging the liquidation deemed to have been abandoned. In her founding affidavit, Dludlu alleged the latest move by the first respondent (Du Van Developers) was an afterthought as it accepted the offer.

Du Van is yet to respond to the new allegations. Dludlu alleged that the Director of Du Van Developers, Maurice Du Pont, wrote a proposal to Cabinet, pleading that the government buys or completes the building so that he could pay building fees that he had incurred. “The third respondent (government), through cabinet, has not been advised of the u-turn made by Du Pont who approached the head of cabinet that he wishes to resile from the agreement that he signed for the E12.5 million as full and final settlement of his claim,” Dludlu alleged.

SASCCO is the Swaziland Association of Savings and Credit Cooperative and it entered into an agreement with Du Van Developers (PTY) Limited in respect of the building, which has been lying idle since 2005.
According to the company (Kwakitsi Investments), they have the legal right to institute the action without the assistance of Mulindwa (liquidator) who is also the second respondent because both Mulindwa and Du Van Developers have settled the claim of the former by accepting payment of its claim as full and final settlement of the matter.

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