In her Council speech, delivered on Tuesday April 26, Mayor Patricia de Lille gave an update on the City’s case against construction companies involved in the construction of Cape Town Stadium
She said that on March 31 the North Gauteng High Court ruled in favour of the City against WBHO in a stadium collusion case.
“In the case against a number of construction companies that colluded in respect of the construction of the Cape Town Stadium, the City is claiming more than R500 million in damages from the construction companies. The judgment relates to an objection by WBHO that the City could not rely on admissions made by other construction companies to prove its claim against WBHO.”
She added that the the court had dismissed WBHO’s objection and ordered it to pay the City’s legal costs.
“This judgment paves the way for the City to recover the amount of damages that it has suffered as a result of the collusion by the construction companies. Recently, the national government entered into settlement agreements with the various construction companies in respect of damages that arose from the collusion. This settlement agreement entered into does not come close to compensating the public for the damages that were suffered as a result of the collusion by the construction companies. This is exactly why the City of Cape Town decided to pursue the matter independently and refused to rely on national government for proper recourse.
“We are committed to continuing to pursue the claim, in order to recover the monies owed to the people of Cape Tow,” said Ms De Lille.