Transnet in fuel storage tank deal fiasco

Transnet in fuel storage tank deal fiasco

Durban – Directors of Elgin Engineering in Durban, brothers Ian and Lee Donjeany, are accused of being involved in an “elaborate corporate shell game” involving the award and subsequent cancellation of a R125 million Transnet contract to construct two fuel storage tanks in the harbour.

Transnet alleges that Elgin has launched three high court applications, each using different attorneys, in its attempts to put a company awarded the contract into business rescue and attach assets on site that Transnet says it owns.

Elgin has denied the allegations, saying they are “unfounded and based on pure speculation”.

“We are a respectable company. We remain true to our values and the laws of this country,” the company said in a written response to The Mercury.

“We are owed money and we are doing whatever we lawfully can to collect it.”

The allegations against Elgin emerged in an application before the Durban High Court in which Transnet sought to intervene in the asset attachment application, which it says it “stumbled upon by chance”.

Transnet project director Theunis Steenkamp said in his affidavit that the Donjeany brothers and their co-director in Elgin, Vincent Chetty, had made “factually and mutually destructive” statements under oath in the court applications.

Steenkamp said the contract was awarded in 2012 to a consortium comprising Intershore Africa Trading, Channel Construction and an Oman company, VJ Tanks.

But the following year, he said, the parties “purported” to cede and assign the contract from the initial consortium to one comprising Elgin and Channel Construction.

Steenkamp said this was not permissible in terms of the constitution, but Transnet’s project management team had mistakenly continued with the project until March when, “out of an abundance of caution”, the contract was terminated.

He alleged that the “corporate shell game” had been uncovered in investigations by Transnet…

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