SLOMOES APPLIES FOR ARREST OF AG, PS

MBABANE – Slomoes Corporation (Pty) Ltd wants the Principal Secretary in the Ministry of ICT and the accountant general (AG) to be jailed for failure to comply with a court order. The order was issued on October 4, 2024, directing that Slomoes Corporation be paid the sum of E6 490 117. In the present application before court, the company is seeking orders that the Information Communications and Technology principal secretary (PS) and the AG (respondents) be declared to be in contempt and be sentenced to 90 days imprisonment or until such time that they comply with the order. Alternatively, Slomoes Corporation seeks that the respondents be directed to purge the contempt forthwith by complying with the order of October 4, 2024.

The Managing Director (MD) of Slomoes Corporation, Lucky Dlamini, said the matter commenced before the High Court by way of summons, in which the company sought payment of the sum of E5 395 277 in respect of an outstanding balance. It also demanded payment of the sum of E1 094 840 in incidental charges. Interest was to be charged at the rate of 9 per cent per annum.Dlamini said the summon was served on the respondents on August 25, 2024. According to the MD, upon the lapse of the period for filing a notice of intention to defend, the matter was set down for default judgment on September 26, 2024.A notice of intention to defend was presented by the defendants’ representative. However, Slomoes Corporation’s attorneys objected to it as it was filed way out of time and without an application for condonation being filed.

When the matter was postponed to October 4, 2024, the respondents were ordered to file any court process, if any, by September 30, 2024.According to Dlamini, the respondents reportedly elected not to file the condonation application or any other affidavit as directed by the court.On October 4, 2024, being the return date, the respondents allegedly conceded to the fact that service of court process was properly effected. Dlamini said they further conceded to the fact that Slomoes Corporation was entitled to the order for default judgment. The court duly granted the order for default judgment as prayed for. He pointed out that in addition to the orders granted, the parties went on to endorse a consent order in that the execution of the order be stayed until November 4, 2024, which is a period of one month.

According to Dlamini, the court order was served upon the defendants’ legal representatives. “Therefore, the respondents are aware of the aforementioned court order. In any event, the court order was granted in the presence of legal representatives for both parties. The legal representatives further consented to the stay of execution of the court order,” Dlamini argued. The veracity of these allegations is still to be tested in court. The respondents are yet to file their answering papers. Slomoes Corporation is represented by Nkosinathi Manzini of CJ Littler and Company.

Mandate

Dlamini said in his capacity as the managing director of Slomoes Corporation, and as the one who was in the forefront in the execution of the mandate from the PS, he took it upon himself to make some enquiries on compliance with the court order. He alleged that he was advised that paperwork for effecting payment was at an advanced stage. “I was actually made to understand that the exercise was going to be completed within a short period of time,” he said. “It is unfortunate that, as at the present moment, no payment has been received by the applicant. The above is prejudicial to the operations of the applicant.” In seeking that the PS and AG be sent to jail for 90 days, according to Dlamini, this would ensure that they comply with the orders of the court. He said he believes that court orders ought to be obeyed at all material times. “The conduct of the respondents of disobeying the court order cannot be countenanced by the honourable court,” he argued.

In the alternative, the applicant is seeking an order directing the respondents to purge their contempt forthwith. In motivating the application, Dlamini said his company is suffering great prejudice. “Actually, there is an imminent litigation in the circumstances as the employees who are the mainstay of the applicant have not received their salaries for the month of December 2024, due to cash flow problems, which have been caused by the first and second respondents’ refusal to pay as per the court order,” he submitted. “The coffers of the applicant have run dry, and thus the applicant is failing to sustain its employees and its operations. Failure to maintain the employees has a negative effect on the applicant as service delivery is not guaranteed. Such can lead to the company being liquidated.”

Dlamini informed the court that his company is further being faced by unending litigation from creditors. This, he said, is negatively affecting the operations of the company. He made an example that Standard Bank obtained a judgment against Slomoes Corporation for a sum of E6 752 283.83 in respect of loans advanced to the company for the purpose of servicing its contract with the Ministry of ICT. He submitted that the bank has issued a warrant of execution against his family home, which can be sold anytime to recover the debts owed to the bank in respect of the loan which was to service the contract with the Ministry of ICT. “This is clearly prejudicial to me and my family as we will be left homeless, unless the first (PS) and second (Accountant General) comply with the court order.” He said this alone, renders the matter very urgent. He also told the court that the Attorney General has indicated that he intends to apply for a rescission of the judgment. He said this is contained in a letter dated December 2, 2024. The matter is pending in court.

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