Johannesburg – Businessman Moyikwa Sisulu and his company are in trouble with the law for failing to pay millions of rands to two law firms for services rendered on two separate occasions.
Sisulu and his company, Sisulu Management, are being sued for over R2-million by Tshisevhe Gwina Ratshimbilani Incorporated (TGRI) and Ernest and Young Advisory Services (EYAS) for failing to pay them for work regarding two separate mining deals.
The suits were filed separately at the Joburg High Court between late last year and last week, and the company and Sisulu, who is the nephew of Minister of Water and Sanitation Lindiwe Sisulu, were given a couple of days to file a motion to defend them.
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In the papers, which are in our possession, TGRI says that Sisulu’s company, represented by Sisulu himself, entered into an agreement with them on June 19 last year to provide legal services for his mining deal referred to as Project Helsinki.
In terms of the agreement, the law firm was, among others, to undertake detailed legal due diligence in respect of the business affairs of Project Helsinki and its relationship or agreement with third parties.
“The proposed scope of work further included obtaining all regulatory approvals that may be required to implement Project Helsinki but not limited to competition authorities’ approval or notification and of the Department of Mineral Resources’ approval of Project Helsinki,” read the papers.
TGRI said Sisulu had co-terminated its mandate before it could complete the task. Afterwards, the firm sent them a tax invoice of over R1.2-million on July 23 but it later ballooned to over R1.5-million on August 7, after including advocates’ fees.
“It is respectfully submitted to this court, considering the aforementioned, that the defendants are jointly and severally liable to the plaintiff in the amount of R1 561 697.95, VAT included, representing the fee due, owing and payable to the plaintiff,” read the papers.
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EYAS also said Sisulu’s company owed it over R500 000 for work done. It said it had entered into an agreement with Sisulu and his company on May 30 2019 to perform, among others, technical and environmental due diligence.
This when they wanted to acquire 100% of Lanxess Chrome Mine in Rustenburg.
The firm said it complied with the terms and condition of the contract, however, Sisulu instructed them to cease work before the final report could be rendered.
As a result, the law firm had sent them a half a million invoice to pay, but despite undertaking to settle it on June 19 last year, they had failed to do so.
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