Cacadu deal a nightmare

A CAPE Town company which won a R5.2-million tender from the Eastern Cape Health Department five years ago is in so much debt it faces being auctioned off next week over R14000 it owes in property levies.

This was because it had struggled to get payments from the department and was still owed R500000 for services rendered between 2009 and 2012, the company said.

Phoenix Fire Services, which supplied and serviced all hospitals and clinics' fire equipment in the Cacadu district from 2009 to 2012, is due to go under the hammer on Tuesday. The auction was advertised in a Cape Town newspaper on Friday.

Company managing director Pedro Webb said it could not pay the R14 000 owed in property levies because the department was yet to pay the outstanding R500000 owed in terms of the contract – which was its biggest source of income - Mkhululi Ndamase