JOHANNESBURG, Swifambo Rail Leasing says it will challenge Monday’s court ruling declaring its 2013 contract to supplu locomotives to the Passenger Rail Agency of South Africa (PRASA) unlawful.
The High Court in Johannesburg set aside the more 3.0 billion-Rand (about 227.3 million US dollars) contract which tasked Swifambo with providing Prasa with 70 new locomotives.
The Prasa Board has indicated that it will meet Transport Minister Joe Maswanganyi on how to recover the 2.6 billion Rand already paid to Swifambo for the new fleet. Swifambo had delivered only 13 and they are lying idle after being found to be too tall for the local railway system.
Prasa had asked the court to review and cancel the contract after adverse findings on the contract by both the Auditor General and the Public Protector (Ombudsman). The Prasa board has welcomed the favourable court judgment.
With the term of the current board coming to an end on July 31, the board says it will engage the Minister of Transport to discuss how the funds can be recovered.
However, Swifambo is not taking this lying down. The company says it will be filing a notice to appeal the court’s judgment.
It says the legal grounds for challenging the judgment will be set out in the appeal papers.
Source: NAM NEWS NETWORK