CIC DEMANDS OVER E1.3M FROM STEFFANUTTI STOCKS (PTY) LTD

MBABANE - The Construction Industry Council (CIC) is demanding over E1.3 million from Steffanutti Stocks Construction Swaziland (PTY) Limited.
The exact amount which the council is demanding from the company is E1 354 426.13.

According to the council, the money is in respect of a construction levy, for the new Eswatini Revenue Authority (SRA) Headquarters in Ezulwini.
The multi-million tender, to construct the new SRA headquarters, was awarded to Steffanutti Stocks Construction Swaziland (PTY) Limited.
The contract value of the project including levy was E321 252 364.20.

Through its attorneys from SV Mdladla and Associates, the council has since instituted legal proceedings against Steffanutti Stocks Construction Swaziland (PTY) Limited.

In its particulars of claim, the plaintiff (Construction Industry Council) submitted that on or about September 2016, the SRA awarded Tender No.SRA 2014/010 to the defendant (Steffanutti Stocks Construction Swaziland (PTY) Limited).

 “On or about October 10, 2016 through Legal Notice No.166 the Construction Industry Levy Regulations were published under Section 21 and 46 of the Construction Act and as such, the regulations came into force on October 10, 2016,” submitted the council.

Registered

CIC submitted that in terms of Section 3(3), all construction projects in progress at the commencement of the regulations were to be registered with the plaintiff by the contractors responsible for the execution.
Section 4(1) of the Construction Industry Levy Regulation 2016 states; “a contractor shall pay to the council a levy determined in accordance with schedule in respect of each project undertaken.

“Clause 4(2) provides that, the owner of a project may pay the levy direct to the council on behalf of the contractor.”
The plaintiff asserted that on or about March 23, 2017, in compliance with Section 3(2) of Legal Notice No.166, the defendant duly registered Tender No.SRA 2014/010, project title; New Swaziland Revenue Authority Headquarters, Ezulwini.

“Steffanutti Stocks Construction Swaziland (PTY) Limited was advised that the project was subject to payment of the construction levy at the rate of 0.5 per cent of the contract value as provided for in the Construction Industry Levy Regulations of 2016,” submitted the council.

According to CIC, at the time the regulations were published and came into force, the project was nine per cent complete.  The amount subject to levy according to the council was E299 654 094.00.

In its particulars of claim, the plaintiff claimed that it advised the defendant that the levy payable was E1 454 426.13.
“The aforementioned amount was based on the total project cost before the VAT of E319 654 093.70. The defendant has paid an amount of E100 000 on a ‘without prejudice’ basis,” alleged the council.

These are allegations contained in particulars of claim whose veracity is still to be tested in court and the defendant is yet to file its papers in the event it is disputing the claim against it.

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