PRETORIA – The South African infrastructure market was in crisis, says financially troubled listed construction and engineering group Aveng.
Eric Diack, the executive chairperson of Aveng, said yesterday that this reflected the marginal economic growth experienced in South Africa, which was exacerbated by “unprecedented and widespread threats of violence, community unrest and protest action on construction sites which employers (clients) seemingly expect contractors to accept as the new normal”.
The Aveng-Stabag Joint Venture (ASJV), in which Aveng wholly-owned Southern African construction and engineering business Grinaker-LTA was a 50 percent partner, terminated the SA National Roads Agency (Sanral) Mtentu Bridge contract last month following a force majeure event.
Aveng said the joint venture launched a pre-emptive urgent application in the North Gauteng High Court last week for an order preventing Sanral from making a call on the contract securities until the dispute between the parties regarding the termination of the contract had been finally determined.
The group said the ASJV had secured an interim undertaking from Sanral preventing a call on the contract securities pending judgment in the application.