GOVT, COMPANY AT LOGGERHEADS OVER PROPERTY COMPENSATION

MBABANE – A company is at loggerheads with government over a compensation amount for demolition of its property to give way for the construction of the Manzini/Mbhadlane Highway.

Government is offering a compensation of E172 515 44 while the company contends that the property was valued over E1.8 million. Kashgar (PTY) Limited has since taken the Swaziland Government (Ministry of Works and Public Transport) and Inyatsi Construction Limited to court. Inyatsi Construction has been cited in the matter because it was the one which was awarded the tender for the construction of the road. The company wants the High Court to interdict and restrain government from entering onto and destroying its property pending the finalisation of the compensation which would become due to it as a result of the latter’s action. The company is represented by Senior Lawyer John Henwood from Henwood and Company in Mbabane. In his founding affidavit, the Director of the company, Kerry Smith, stated that government was currently in the process of constructing a major highway between Manzini and Mbadlane towards Sikhuphe Airport in the Lubombo Region. He informed the court that his company’s property was situated at Hhelehhele, Lugaganeni and the portion of it abutted onto the proposed highway construction.

Letter

Smith pointed out that on December 4, 2013 the applicant (Kashgar (PTY) Limited) received a letter from the Attorney General. He alleged that in terms of the letter the Attorney General indicated government’s intention to expropriate a portion of the applicant’s property and to that end, it offered compensation  in the amount of E172 515 44. “The applicant did not accept that offer of settlement and engaged government together with other affected property owners with the view to agreeing to a fair compensation amount,” submitted Smith. He alleged that various meetings took place but no satisfactory agreement was reached. According to Smith, in approximately mid -2014, the applicant then engaged the services of Henwood to assist it and in that regard  on August 19, 2014 he (Henwood) is reported to have addressed a letter to government advising that while the company did not have objection in principle to the acquisition of its property, it required fair and reasonable compensation. Smith alleged that pursuant to that a number of meetings were held and a number of letters were exchanged between the applicant’s attorney and the Attorney General.
This was allegedly in a bid to try resolve the issue amicably but the parties could not agree on satisfactory compensation.

Affidavit

These are allegations contained in an affidavit whose veracity is still to be tested in court and government is yet to file its papers. He mentioned that on June 24, 2016, the applicant Director Robert Nilsen, him, lawyer Henwood and a property valuator Paul Malichi met with the representatives of government in an attempt to reach an amicable solution.

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