Kimberley – Damages resulting from the dismantling of the Kimberley Diamond Cup (KDC) could cost the Northern Cape Department of Economic Development and Tourism (DEDAT) nearly half a billion rand.
This is according to the president of the World Skateboarding Grand Prix (WSGP), Tim McFerran, who said on Tuesday that the KDC service provider was continuing with legal action against the department, which could be liable for in excess of R400 million should the courts rule in their favour.
Last year saw the 2016 instalment of the KDC cancelled after DEDAT defaulted on its contract with WSGP.
This has left the provincial government and the American-based company at loggerheads, with McFerran saying on Tuesday that WSGP remained adamant that DEDAT be held accountable for its actions.
The WSGP president said that an arbitration date has been set for July with DEDAT potentially liable for damages to the value of hundreds of millions of rands.
“WSGP’s claims are pretty cut and dry and it feels comfortable on a victory in this matter,” McFerran said.
“However, this is only the beginning of the process. After the arbitration is over, WSGP will pursue additional claims in the high court regarding additional contract breaches.”
McFerran said that WSGP felt that it had an obligation to the community to expose the “wrongdoers” and their efforts to undermine the best interests of the community for their own personal gain.
Meanwhile, spokesperson for DEDAT, Zandisile Luphahla, accused McFerran of trying to divert attention away from the issues at hand.
“We believe that this is a matter for the courts and cannot understand why McFerran runs to the media instead of letting the process take its proper course,” he said. “We are not going to entertain him nor comment on the allegations he is making.”