By Asa Sokopo

A multi-million rand lawsuit is under way between Walter Sisulu University (WSU) and a local property developer over student residences for which both parties claim they are owed money.

WSU took Slip Knot Investments 777 (Pty) Ltd to court, claiming it was owed more than R1.8 million for money the university overpaid between February 2006 and March 2009 for the lease of Union Arcade in the East London CBD.

Earlier this month, WSU withdrew its application for summary judgment before acting judge Phillip Zilwa granted Slip Knot leave to defend the action.

In court documents, WSU claims that Slip Knot invoiced it for 411 students while the premises only accommodated 362 students.

“The additional sum paid in respect of the difference between 411 and 362 students throughout the period was paid without there being any legal obligation or cause for such payment,” documents filed by WSU stated.

Slip Knot hit back, filing a notice to oppose the matter, claiming they did not owe WSU any money.

In court papers, Slip Knot director Jean Prieur du Plessis said the two parties’ lease agreement was between August 1, 2005 and July 31, 2010.

Du Plessis stated in court papers that WSU only occupied Union Arcade on February 1, 2006, and despite this, the institution was still liable for seven months’ rental amounting to more than R1.8m.

Du Plessis further stated that WSU had proposed to pay rent based on a cost of R750 a student, while Slip Knot estimated that each student would occupy 10m², thus rent was R308 250 a month in total.

Following alterations, the premises could only accommodate 398 beds and 500m² was used as a common room, space which would have accommodated about 49 students.

Du Plessis said at the instruction of WSU, larger rooms were subdivided into smaller rooms resulting in some rooms not having windows.

Slip Knot then built louvres above the doors for light and ventilation but this was rejected by WSU, leaving the rooms unused.

WSU, Du Plessis further stated in court papers, accepted that 36 beds were lost and only 362 could be accommodated. The rental remained.

Du Plessis further claims that WSU is indebted to them for more than R1.4m for the lease of Patterson House in King William’s Town and for placing an antenna on the Allied Building in East London, owned by Slip Knot.

He further claims that WSU owes Slip Knot for:

Altering premises and failing to restore them to their original state which would cost Slip Knot R1.2m;

Two toilet rolls a week, which were provided to each student, however, the amount is undisclosed;

Electricity and water consumed on the leased premises in excess of R40 000;

R750 plus VAT for each late payment made by WSU to Slip Knot; and

Interest on all arrears at the rate of 17.5 percent a year.

Source: Daily Dispatch