Moorosi Tsiane
THE government is facing a M3.6 million lawsuit from a local motor spares and diagnostics company that claims it has been storing 11 abandoned government vehicles at its premises for years without payment.
Mobitech (Pty) Ltd has approached the High Court seeking an order compelling the government and several ministries to pay M3,609,536 for specialised diagnostic services and accumulated storage charges allegedly incurred after the vehicles were left at the company’s premises.
The company is also seeking interest on the amount at a rate of 18.5 percent per annum.
In court papers filed by Mobitech director, Tšiu Mokapela, the company says the dispute dates back to 2021 when the government engaged Fleet Management Services (Pty) Ltd to oversee its fleet of business vehicles.
According to Mr Mokapela, Fleet Management Services was contracted to provide fleet-related services including vehicle leasing, maintenance, fuel tracking, driver safety management, accident management and regulatory compliance.
“Around 2021, the government of the Kingdom of Lesotho engaged the services of Fleet Management Services (Pty) Ltd to manage its business vehicle and its contract with the Kingdom of Lesotho encompassed the leasing, maintenance, fuel tracking, drivers’ safety, accidents management and the regulatory appliance on the government business fleet etc,” reads part of the court papers.
Mr Mokapela states that during the execution of the contract, Fleet Management Services subcontracted Mobitech to conduct specialised diagnostic assessments on government vehicles.
“During the tenure of Fleet Management Services (Pty) Ltd’s contract with the Kingdom of Lesotho, Fleet Management Services subcontracted Mobitech to perform certain specialized diagnostic reports on the various Government motor vehicles in execution of its contract with the Kingdom of Lesotho and 11 vehicles were brought for specialized diagnostic reports.”
The respondents in the matter include Morai-Masela & Co (Pty) Ltd, the Treasurer in the Ministry of Finance, the Principal Secretary in the Ministry of Health, the Cabinet, the Principal Secretary in the Ministry of Forestry, the Principal Secretary in the Ministry of Transport and the Attorney General, among others.
According to Mr Mokapela, the agreement between Mobitech and Fleet Management Services stipulated that the diagnostic services would cost M32,736, while storage charges would accrue at M200 per vehicle per day.
“The applicant did perform the agreed specialised diagnostic services on the above-mentioned motor vehicles and then made the required reports to Fleet Management Services (Pty) Ltd per the parties agreement within the agreed period of time. Subsequent to the aforegoing the applicant sent Fleet Management Services an invoice for the services rendered.”
However, Mobitech claims it later discovered that Fleet Management Services’ contract with the government had been terminated before the company settled its outstanding debt.
“It is apposite to highlight that at the time when Mobitech sent Fleet Management Services invoice for the professional services it rendered in respect of the aforementioned motor vehicles, it came to its attention that Fleet Management service contract with government of Lesotho was terminated before it could settle its debt with Mobitech,” Mr Mokapela states.
He further alleges that before leaving the country, Fleet Management Services advised Mobitech that arrangements had been made for all outstanding claims to be pursued directly through the Ministry of Finance.
“Before it left the country, Fleet Management Services informed Mobitech that its contract with the Kingdom of Lesotho had been terminated, it had made arrangements with the Government upon making a hand-over of the services it rendered that all the claims in respect of all the monies that remain due and owing to Mobitech should be claimed directly against the Government of Lesotho via the Ministry of Finance.”
Mr Mokapela claims the Ministry of Finance subsequently accepted responsibility for the debt after Fleet Management Services exited the contract.
“The Kingdom of Lesotho through the Principal Secretary Ministry of Finance accepted the cession of the debt to it by Fleet Management and thereafter nominated and appointed Morai-Masela & Co as its new property manager in the place and stead of Fleet Management Services (Pty) Ltd,” the court papers state.
Despite the transition from Fleet Management Services to Morai-Masela & Co and eventually to direct management by the Ministry of Finance, Mr Mokapela says the vehicles were never collected.
“Ever since Mobitech performed the agreed diagnostic reports on the aforesaid motor vehicles from the above-mentioned various Ministries of the Government of the Kingdom of Lesotho, the said motor vehicles have never been collected from Mobitech’s premises since then onwards until today,” he says.
As a result, Mobitech alleges it has been forced to provide storage and security for the vehicles at its own cost for several years.
“The applicant has since been keeping them in its storage using its own security to guard them day and night since 2020 until now.”
According to the company, the storage charges accumulated over time, resulting in a claim running into millions of maloti.
“In the circumstances the cumulative storage costs that the aforesaid motor vehicles accumulated with Mobitech over the period starting 18 May 2020 to 24 August 2022 is an amount of M3,576,800 plus the remaining costs for the services rendered in the sum of M32,736.
“Thus, the amount that remains due and owing to Mobitech by the respondents totals an amount of M3,609,536 being the costs for both the services rendered and storage of the aforementioned eleven motor vehicles from 2020 until to-date.”
Mr Mokapela further alleges that government officials acknowledged the debt on several occasions but failed to settle it.
“Despite demand, the respondents are refusing and/or neglecting to pay Mobitech the said amount of money for no reasonable and/or probable cause.
“The respondents admitted on several occasions that they owe Mobitech but despite demand have dismally refused and or neglected to settle their aforesaid debt.”
Mobitech is asking the High Court to order the respondents to pay the full M3.6 million claim together with interest and legal costs.
The respondents are yet to file their court papers should they wish to oppose the application.