Sibanye-Stillwater hauled to court by disgruntled supplier – report

SIBANYE-Stillwater is embroiled in a legal dispute with a prospective supplier who claims in an article by Business Times today that it was excluded from a contract worth R17.5bn.

The platinum and gold producer responded in the article saying the supplier was under investigation. An anonymous tip-off suggested the company’s directors had been involved in wrong-doing previously.

Parabats Security Pty (Ltd) said it received a letter of intent from Sibanye-Stillwater indicating its intention to award it the R17.5bn tender. Sibanye-Stillwater says the letter of intent sets clear it is legally enforceable only once “a full and formal written agreement has been concluded and signed by both parties”.

The miner also says the contract value is R16m/year.

Sibanye-Stillwater said it had since asked auditing firm PwC to conduct a forensic investigation into the tender process after receiving an anonymous tip-off that some of its employees may have been involved in wrongdoing.

Mzamo Mini, a director of Parabats, has approached the Pretoria high court to challenge the decision to withdraw the letter and award the contract to another company.

In terms of the contract Parabats committed to sourcing 30 trucks for transportation of the cobalt and nickel; providing CCTV surveillance in all the trucks; making sure each truck had a refuelling card; and putting security patrols in place to accompany the trucks to Durban, said Business Times.