PPE subcontractors lose bid to put hold on Koloni Consulting’s bank accounts

Original order based on concern Gwija and Pokwana would withdraw and use all the money in the accounts

VLG Accounting and Tunimart, two subcontractors to Koloni Consulting Enterprise in its R35.5m Eastern Cape health department tender to supply PPE during the Covid-19 pandemic, have lost the chance to reinstate holds on Koloni’s bank accounts.

But even as judge Murray Lowe’s ruling against reinstating the hold on the bank accounts means there is no guarantee they will get the money they allege is due to them, the subcontractors still have a trial date later in September to try to convince a court to hold Koloni accountable to pay them.

The parties have been through protracted litigation since joining forces to procure and deliver essential items to healthcare workers at health institutions around the province.

After their efforts to secure payment for their contribution to fulfilling the tender, VLG and Tunimart obtained an urgent anti-dissipation order in the high court on February 2.

This compelled Absa, First National and Capitec banks to hold an amount of R9.5m, equal to what the subcontractors say Koloni owes them.

The rule nisi order was granted without Koloni’s knowledge and the parties were due in court a month later for a full hearing of arguments on all sides to determine if the interim ruling should be made final.

However, on May 20 the matter was removed from the roll and no order was made regarding the extension of the rule, effectively removing the block on the banks and entitling Koloni to deal with its funds as it wished.

VLG and Tunimart next applied for the reinstatement of the rule nisi, the application which eventually came before Lowe, who said such orders were always conditional upon confirmation by the court.

If there was no extension of the rule, and no date for the matter to be heard in future, “the rule must automatically lapse” discharging the obligation on the banks and Koloni to comply with the original order.

Koloni is owned by Pumeza Gwija, who is the wife of media professional Vukile Pokwana.

Both were cited directly in the legal action.

Pokwana is alleged to have played a leading role in pulling together the successful PPE procurement bid.

The basis for the original order was concern that Gwija and

The lapse of the ‘rule nisi’ has the effect that the prohibited action can be committed or performed without being in contempt of court

Pokwana would withdraw and use all the money in the Koloni accounts.

Lowe effectively acknowledged that, given the substantial time which had passed since the block was removed on May 20, it was unlikely the money was still secured in the bank accounts, removing any rationale for reinstating the rule nisi.

Dismissing the application for reinstatement, Lowe said: “The lapse of the rule nisi has the effect that the prohibited action can be committed or performed without being in contempt of court.”

The parties are due in court again on September 21.

Another supplier in the tender arrangements, Andivect, also obtained an interdict blocking Koloni’s access to R19.36m in an Absa account.

In a merry mixup, Koloni was still able to pay over R16.57m it said was the full amount due to Andivect, causing Absa to place a hold on further funds, and implicating the claims for payment respectively by VLG and Tunimart.