06 December 2019 - NW1398
Chetty, Mr M to ask the Minister of International Relations and Cooperatives
Whether, with reference to the New York Project (NYPP) and the alleged contradicting reports by officials, she can indicate (a) if the agreement on the NYPP in any way entails an agreement between her department and a Gupta – subsidiary company, (b) what total amount has her department paid to date in respect of the project and (c) what will be the penalties if her department cancelled the agreement. NW2612E
a) No, the agreement is between the Department and Simeka Group (Pty) Ltd and Regiments Capital (Pty) Ltd. The appointed companies incorporated a Special Purpose Vehicle in terms of the Companies Act, viz Lemascene (Pty) Ltd and the Department concluded a Project Preparation Agreement with Lemascene (Pty) Ltd
b) The amount paid spent USD 9 million (R 117 million).
c) The penalties are not yet determined as the matterr is before the courts, wherein Lemascene (Pty) Ltd filed summons against the Department on claiming that it has breached the agreement. In terms of the summons Lemascene seeks the following relief:
- Specific performance - in that the Department be directed to honour its obligations in terms of the provisions contained in the Project Preparation Agreement and tender award; or
- Payment of damages in the total amount of R598 606 379.82 plus interest thereon at a rate of 15,5% per annum for loss of profits and out of pocket costs.