Strategic Fuel Fund Costs Spiral As Service Fight Bounces The Courts

27 Days(s) Ago    👁 64
strategic fuel fund costs spiral as service fight bounces the courts

The Strategic Fuel Fund Association (SFF) has lost its bid to withhold a multimillion-rand outstanding payment to Krohne, an international manufacturer of custody-metering systems whose services at the Saldanha Terminal were faulted by the SFF.

This comes as Supreme Court of Appeal (SCA) Judge Selewe Mothle on Friday overturned the decision of the South Gauteng High Court in Johannesburg, which had dismissed Kronhes application for payment of the full service amount.

The high court had dismissed Krohnes application and ruled that SFF pay the company a sum made up of combined amounts of $60 689 (R1.1 million); R150 799; 67 859 (R1.32m); and 10 264 (R237 636); plus interest on the amounts at the rate of 10% per annum from October 27, 2019 to the date of final payment.

Instead, the SCA instead ordered the SFF to pay for Krohnes costs of the appeal, including the costs consequent upon the employment of two counsel, and ordered that the matter be remitted back to the high court to be determined on the merits.

The dispute stems from the accuracy of the KOG-metering system Krohne installed at the Saldanha Terminal to accurately measure the precise volume of crude oil discharged into the tanks and subsequently exported out of the country.