The South African Gqom Awards has been canned after its sponsor, Diageo South Africa, backed out and demanded the R1.1-million sponsorship back.
This after the awards organisers allegedly failed to host the event on the date they had promised, April 20 2019, following numerous activations around KwaZulu-Natal.
However, in sponsorship documents between the two parties, the event had initially been planned for February 9 2019 at the Durban International Convention Centre.
The team had announced the postponement on its social media platforms and has never released a new event schedule.
In a notice of termination, Diageo South Africa expressed dissatisfaction in how the event planning has been put out. “Having regard to the aforementioned, we have taken the decision to withdraw our sponsorship from the event. We therefore hereby terminate the agreement in accordance with clause 22.7 of the agreement effective 2 October 2019,” reads the letter in part.
“Furthermore, we demand full refund of the sponsorship fee [refund] paid by us in the amount of R950 000. The refund is to be deposited within 14 days from the date of this letter being 2 October 2019, failing which we will commence recovery proceedings against you at your expense.”
Diageo has since been running to and from court in an attempt to get its money back from the owners of the event. After failed numerous attempts in the last three years, Diageo South Africa requested a default judgment on the matter.
“As a result of the breach of the sponsorship agreement by the defendant, the plaintiff has suffered damages in the amount of R1 139 545.14 [one-million one-hundred and thirty-nine thousand, five hundred and forty-five rand, and fourteen cents].”
This includes the initial sponsorship fee for the awards and “R189 545.14 arising from services rendered to the plaintiff by co-suppliers in anticipation of the event”.
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