Johannesburg World Summit Company on Sunday dismissed Aim For Gold’s (AFG) allegations that Jowsco breached an accommodation contract as unfounded.
AFG, a Durban-based company will sue the organisers of the World Summit on Sustainable Development for R26-million for breaching a contract.
AFG representative Belinda Davis said on Sunday the R26-million, plus legal costs, was to compensate the company for loss of profits arising from Jowsco apparently breaching the contract.
Jowsco representative Thandi Davids said Jowsco appointed a destination management company through an open and public tender in 2001 and that company was the accommodation facilitator on behalf of Jowsco.
Davis said Jowsco had an agreement with AFG, an accommodation placement contractor, to house thousands of security personnel and the international media contingent for the summit. The deal was struck in January.
”The allegations levelled against Jowsco by AFG are unfounded and the matter is presently going through the legal process and is therefore subjudice,” said Jowsco CEO Moss Mashishi.
According to Davis, Jowsco was issued with a summons a month ago, but never responded until they were issued with a second summons on Monday.
She said Jowsco responded to the summons on Wednesday and the parties were waiting to obtain a trial date at the Johannesburg High Court.
Davis said AFG stated in its court papers that it sourced accommodation worth around R100-million to meet the contract.
”These efforts were allegedly sanctioned and recognised by Jowsco, as evidenced in documents, correspondence and minutes of meetings with Jowsco officials,” she said.
Davis said that in March AFG was informed that its services were no longer required, despite it having sourced and filled over R77-million worth of accommodation. – Sapa