Housing project deadlock heads to arbitration

BOPEU headquaters
BOPEU headquaters

The Court of Appeal (CoA) has referred the prolonged disagreement between Babereki Investments (BI) and Quality Builders (Pty) Ltd for arbitration, a decision that could break the deadlock that has hindered a multi-million pula residential estate project.

The recent CoA ruling dismissed Quality Builders’ appeal against a High Court decision, which acknowledged a dispute between Quality Builders, BI, and the Botswana Public Employees Union (BOPEU) over a development agreement for transforming a specific plot into a residential estate.

The High Court had referred the matter for arbitration. Quality Builders then challenged the High Court’s ruling that identified a dispute and sent it to arbitration. However, CoA Justices Goemoekgabo Loeto Tebogo-Maruping and Johan Coenraad Froneman, aligned with Justice Isaac Lesetedi’s ruling, supported the High Court’s position. Justice Lesetedi’s judgment explained that there was no substantial reason to contest the High Court’s reference to arbitration under Clause 18 of the parties’ agreement.

Editor's Comment
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