Builder wins court dispute over posh Point complex

Posted On Wednesday, 11 April 2007 02:00 Published by
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Judge orders BEE partners to allow locked-out workers back on site
08 April 2007

By Taschica Pillay
 
A Durban businessman has won a court order to continue building an upmarket development he was allegedly kicked out of by high-profile BEE personalities, including Nelson Mandela's granddaughter Nandi Mandela.

Harkrishen Hansraj applied to the Durban High Court to regain access to the site of the multi-storey apartment complex at the Point Waterfront.

Hansraj is the owner of Prainder Civils and Earthworks cc, a Phoenix-based construction company that was given a R52-million contract to build the luxury complex near the Durban Harbour mouth.

Hansraj went to court after Dolphin Whisper Trading, a BEE property development company in which Nandi Mandela owns a significant stake, cancelled his contract following delays in completing the construction of the complex and alleged poor workmanship.

Judge AJ Choudree ordered the company and its partners to return possession, occupation and control of the building site to Hansraj and his co-contractors, despite a detailed presentation opposing the order.

Choudree also ordered Dolphin Whisper to pay the costs of the application.

Dolphin Whisper is owned by BEE engineering consultant Linda Masinga, who has been involved in several developments, including Zimbali, La Lucia Ridge and River Horse Valley in northern Durban.

Nandi Mandela's company, New Grounds Investment, has shares in Dolphin Whisper and manages the marketing of the 56-apartment complex, which is surrounded by a canal.

Units are priced at between R1.6-million and R4.5-million.

Three years ago, Class A Cables, another BEE company owned by Mandela, was involved in a tender dispute with a Durban businessman following claims that it was awarded a R50-million contract by the eThekwini Municipality under dubious circumstances.

In court papers, Dolphin Whisper cited various disputes over the building of the apartments.

Hansraj claimed that Masinga hired Trojan Security Services to station armed guards at the construction site.

He said the guards had ordered his employees to leave the site and fitted new gate locks.

He said Masinga also threatened to replace him and not to pay the nearly R7-million owed to his company.

Replying to Masinga's affidavit, Hansraj denied the allegations of poor workmanship.

"Dolphin Whisper Trading has introduced substantial areas of dispute and various allegations which are irrelevant to the issue of their unlawful actions."

Hansraj said one of the claims was that he had shares in Dolphin Whisper Trading. He said a document submitted to substantiate the claim was signed by a site agent and only put together to obtain a loan.

He said he had not signed a share certificate that purported to prove his interest in Dolphin Whisper. Instead, the document had been signed by a site agent employed by him. "The site agent did not have my authority and mandate to sign the document," he said.

Masinga said he terminated Hansraj's contract and locked him out of the site after experts in his company had notified him of the poor quality of the workmanship.

Masinga said he and other investors were concerned over the lack of progress, which he described as "extremely serious".

"In my estimation, the project was approximately one-third complete," said Masinga in an opposing affidavit.

"Prainder Civils and Earthworths defaulted in its insurance obligations under the contract. It was decided to terminate the contract and seek an alternative contractor."

"The poor workmanship and the lack of progress in the completion of a show unit, which was promised to be completed by November 2006, has affected potential sales."

He said his company had given Hansraj 10 days to remedy the situation, but after the ultimatum had elapsed without any progress, the contract was cancelled on March 16.

He said it would cost him and his partners a further R11-million to complete the apartments.

In her affidavit, Mandela asked the court to dismiss Hansraj's application against her company with costs.

Sunday Times
 


Publisher: I-Net Bridge
Source: I-Net Bridge

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