Publication: City Press Issued: Date: 2003-11-20 Reporter: Sapa

Court Rules Against Radar Boss



City Press

Date 2003-11-20



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The High Court here ruled against Richard Young and his company, C2I2, on Thursday, paving the way for the installation of a hi-tech radar-tracking system on the SAS Amatola and subsequent new navy corvettes.

Judge André Blignault essentially ruled against C2I2 because he felt that the balance of convenience suited Reutech Radar Systems.

Young, the managing director of C2I2, brought an urgent application in the Cape High Court last Tuesday, seeking to prevent the installation of the radar systems on the navy's new corvettes, which formed part of the government's controversial multibillion-rand arms package.

In last Tuesday's application against Reutech, Young told the court in papers an agreement concluded in 2000 stipulated that payment had to be made to C2I2 before Reutech could install the radar devices.

According to the contract, the devices remained C2I2's property until paid for, he said.

All the equipment had been delivered to Reutech, but had not been paid for in full, with R14.9m outstanding.

'More than just the money'

"All it means now is we have to go through a lengthy arbitration process to get our money," Young said on Thursday.

He said the judgment would "absolutely" affect the business relationship between Reutech and C2I2, which had generated between R40m and R50m in the past.

Young said getting the money was a bit more than just the principal of the matter, because the R14.9m or R28m at today's prices was not a little money in anyone's terms.

"It's just a case of a big company putting financial pressure on a smaller company in order to get a better deal for themselves with regard to the radars," he said.

Earlier this year, C2I2 brought a R150m lawsuit after it lost a subcontract to supply information management systems for the corvettes.

The contract was awarded to Detexis Systems, a sister company of African Defence Systems which has been linked to the firm of deputy president Jacob Zuma's friend, Schabir Shaik.

Apart from the R150m lawsuit, Young has also instituted four defamation suits against various parties in the arms deal.

He won the first against Yunis Shaik, brother of Nkobi Holdings boss Schabir Shaik, in September this year.

With acknowledgement to Sapa and City Press.

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