Dear MyPE
Since the end of 2016 a number of untrue and unfounded allegations were published in respect of Afrisec and specifically regarding a civil action instituted by the Nelson Mandela Bay Metropolitan Municipality (“the Municipality”) against Afrisec during October 2016. This action is currently still pending.
Afrisec responded to these allegations in The Herald of 11 January 2017. Afrisec is aware of the fact that the aforesaid action is still pending and therefore sub judice. However, the recent spate of publications, once again levelling untrue and unfounded allegations against Afrisec, leaves Afrisec with no other option but to publicly respond.
It is a known fact (and has been reported in the press on numerous occasions) that the Municipality’s Integrated Security Systems Network is currently dysfunctional, with inter alia allegedly only 137 of 1167 CCTV cameras functioning. The Municipality is currently experiencing an all-time high crime level which is clearly spiraling out of control, with the Municipality being the second most violent city in South Africa based on murder rates.
The main reason for the Integrated Security Systems Network’s current dysfunctional status is the lack of any proper maintenance. In an article published in the media on 9 April 2019 a senior official of the Municipality stated:
“It is a system that is tired, not maintained and in urgent need of being replaced as it is in many ways redundant”.
Already in 2016 Afrisec warned that the integrity of the Integrated Security Systems Network is at risk in the absence of a proper maintenance plan and proposed the implementation of a well-structured Maintenance Programme, leaving a hard copy of such proposed Maintenance Programme with a strategic decision maker at the Municipality, at the time, during a meeting arranged at Afrisec’s request on 6 October 2016.
The current administration of the Municipality approached Afrisec, which was responsible for the construction and installation of the Integrated Security Systems Network, to assess a section of the Integrated Security System, in order to advise upon the possibility of restoring the functionality of the Integrated Security Systems Network. Afrisec advised that the system need not be replaced (as was advocated by others) and that the system was capable of functioning properly at a fraction of the cost of replacing it.
Afrisec proposed a first phase, during which the security integrity of the existing Integrated Security Systems Network be restored as a matter of urgency and a second phase, during which the current Integrated Security Systems Network be upgraded to the extent necessary, while, as far as possible, making use of existing stock of equipment (refer www.afrisecgroup.co.za) of the Municipality.
Afrisec offered its services for free for a period of at least three months in order to get the process started. The Municipality accepted Afrisec’s offer and on 22 July 2019, within only approximately 5 hours on site, Afrisec managed to restore more than 100 CCTV Street Surveillance and premises cameras, two Workstations and Control Equipment to full operational functionality, linked to the SAPS 10111 Control Room at no cost to the Municipality whatsoever.
However, following the spate of publications referred to above, this process was derailed and Afrisec was requested not to provide its services anymore. Afrisec contends, without any hesitation, that it would probably have been able, with no cost in respect of labour to the Municipality whatsoever and by making use of existing stock of equipment of the Municipality, to restore a major part of the Integrated Security Systems Network to full operational functionality within a period of three months.
Afrisec did not conclude any contract with the Municipality in respect of the aforesaid services. Afrisec did not receive any payment in respect of such services, nor did Afrisec expect any payment whatsoever.
Afrisec expressly denies the untrue and unfounded allegations published in recent months. Afrisec unconditionally remains deeply devoted to clean governance, honest and ethical business practices and socially responsible corporate management.
As in the past, it has now been alleged again that Afrisec is liable to pay an amount of R 95 million to the Municipality and that Afrisec was paid an amount of R 45.5 million by the Municipality in respect of stock and equipment which does not exist, despite the fact that the Municipality was, at all relevant times, aware of the fact that this stock was stored at Afrisec’s premises, at the specific request of the Municipality, as well as at the premises of the Municipality.
The true facts are that:
- The Municipality issued summons against Afrisec for payment in the amount of R 92 433 301.55 in an attempt to recover amounts paid to Afrisec in respect of services rendered and goods sold and supplied by Afrisec to the Municipality;
- Afrisec instituted counterclaims against the Municipality for payment in the respective amount of R 16 903 313.21 and R 5 731 025.27 for services rendered at the special instance and request of the Municipality;
- The Municipality filed an exception against Afrisec’s second counterclaim, which exception was dismissed by the High Court on 23 January 2018 and the Municipality was ordered to pay Afrisec’s costs;
- All the services rendered and goods sold and supplied by Afrisec to the Municipality, were rendered and supplied in terms of a written agreement, concluded between Afrisec and the Municipality, which agreement was even extended after the aforesaid summons was issued;
- The stock and equipment stored at Afrisec’s premises (at the specific request of the Municipality) as well as at the premises of the Municipality, were properly identified, tested and handed over by Afrisec to the Municipality’s representatives during the period 12 to 16 December 2016, as recorded in Afrisec’s response published on 11 January 2016 in the media; and
- The aforesaid identification of the stock and equipment, the stocktaking, testing and handover of the stock were duly documented by Afrisec’s external auditors, which report is available for inspection by anyone.
Consequently, Afrisec denies that it is liable to pay any amount whatsoever to the Municipality.
Afrisec, as a responsible corporate citizen:
- Remains devoted to finding an amicable solution to the pending litigation in order to avoid the fruitless expenditure of tax payer’s money;
- Repeats its offer to assist the Municipality in order to ensure that the Integrated Security Systems Network is restored to full operational capacity; and
- Remains willing to provide the required labour and skilled technicians at no cost whatsoever for a period of three months in order to achieve the aforesaid goal, for the benefit of the community at large and the local business community.
Regards
Gary Cowper Johnson
Managing Director, Afrisec Strategic Solutions (Pty) Ltd
Port Elizabethan
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