Airport contractor sues govt in P43m dispute :: Mmegi Online

A P43 million performance penalty slapped on Chinese firm Sinohydro after government terminated the company’s airport expansion contract has sparked another legal battle between the two parties with the construction company accusing the state of ignoring a verdict handed down by a dispute adjudication panel.

Government retrieved the penalty from the project’s initial P433 million contract sum in November 2012 as a contract default penalty. This followed the termination of Sinohydro’s Sir Seretse Khama International Airport (SSKIA) contract in July 2012 for “ failure to complete the expansion of the airport within stipulated time frames and cost estimates”.

In a matter heard by Justice Michael Leburu last week, Sinohdryo is seeking the High Court to order government to pay back the P43 million, and deposit the monies into a mutually held account as directed by the Dispute Adjudication Board(DAB).

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