Service provider demands its dues in court
TV news channel Newszroom Afrika has been dragged to the Joburg High Court by Dreamcast Media for allegedly failing to pay nearly R1-million for services rendered by the company.
According to papers filed on March 10 by Dreamcast Media’s lawyers – Bazuka and Company Inc – the relatively unknown company’s directors Neo Majafe and Lebo Ntsabane sent the station’s executive directors Thabile Ngwato and Thokozani Nkosi a proposal to provide multimedia production services for the nascent channel for a minimum number of six shows as well as the overall channel.
The proposal, which involved a four-phase project plan, included conceptualising the channel’s corporate identity and channel’s on-air.
The plan also incorporated election imaging on a pre-production stage and election imaging one month prior to election coverage.
“The estimated costs of all four phases was R2 124,625.00 [two million, one hundred and twenty-four thousand, six hundred and twenty-five rand].
A deposit of 50% … of the estimated amount was required prior to the commencement of any work on each of the phases,” read the papers.
The papers also said the channel would pay for any additional work by the company. Ngwato and Nkosi accepted the proposal and the quoted amounts on January 20 last year.
The papers further said Ngwato, Nkosi and the station’s project manager Rox Dare commissioned additional work from Dreamcast Media and increased the number of shows to be provided.
Dreamcast Media said it sent invoices to the channel after delivering on its obligation by performing all of the multimedia production services and the additional work commissioned by the channel.
“The plaintiff invoiced for all work, as provided for in the agreement, as well as additional work commissioned by the defendant in the total amount of R2 653 050,” read the papers.
The company said the station paid R945 857 for invoices dated February 1, March 5 and June 3, and R771 291 for invoices dated February 1, June 3 and June 5 last year, bringing the total payments to R1 717,149.50.
The company said the channel had ignored repeated pleas to settle the outstanding balance. “Despite demands, the defendant has failed and/or neglected to pay the outstanding balance of R935 900, which amount is due and owing to the plaintiff for work and services rendered to the defendant by the plaintiff in terms of the agreement,” read the papers.
Ngwato declined to comment on the matter and referred questions to the station lawyers, Rosengarten and Feinberg.
Dan Rosengarten said they were opposing the matter.
“In this regard, Dreamcast Media was paid for work actually performed by it, but the amount of R935 900 was not paid and is not owed to Dreamcast Media by Newzroom Afrika due to non-performance by Dreamcast Media of its contractual obligations,” he said. Rosengarten said they would be launching a counter-claim against Dreamcast resulting from Newzroom Afrika having to employ third parties to complete the work that should have been performed by Dreamcast.
“Newzroom Afrika has full confidence in the legal process and does not wish to discuss the merits of the case before the matter is heard in court,” he said.
