Roux Shabangu in R5m row

Posted On Monday, 06 June 2011 02:00 Published by eProp Commercial Property News
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Property mogul Roux Shabangu has failed to pay Alert Steel close to R5m as ordered by the Pretoria high court two months ago.

Roux ShabanguIn April this year the court ordered Shabangu to pay Alert Steel an amount of R4742396, 56 for the building material the company had delivered at the Tweefontein police station.

He had had until May 31 to do so or face arrest.

Alert Steel said on Friday that it had not received payment from Shabangu and would take more legal action.

In April the court found that though there was an agreement between Alert Steel, Shabangu and the Public Works Department that all payments due to Alert Steel would be paid directly by Public Works, the fact was Shabangu was the one who signed personal surety to Alert Steel, making him responsible for the debt.

But Shabangu insists Public Works should pay.

"I am not going to pay because doing so would mean that I am building the police station from my own pocket," Shabangu said.

He said in the memorandum of understanding between Alert Steel, Public Works and himself it was recorded that all the money due to Alert Steel would be paid directly by the department.

"Clause seven of the agreement orders Alert Steel to continue supplying building material to the site and the department irrevocably undertook to pay all money directly to Alert Steel, including sub-contracts, labour and material," Shabangu said.

The stand-off between Shabangu and the department, which has been going on since last June, has resulted in the work at the R20million Tweefontein police station grinding to a halt.

Shabangu was roped in last year following the sacking of TTR Construction, which the department said was not performing.

Public Works spokesperson Thami Mchunu said he hoped the dispute would be resolved soon so that work at the site could resume.

Last modified on Friday, 27 June 2014 15:51

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