Joint Press Statement : CCII Claim for Damages
Joint Press Statement
South African Ministry of Defence, CCII Systems (Pty) Ltd and Richard Young
26 May 2007
The legal actions
brought by CCII Systems (Pty) Ltd and its Managing Director, Dr Richard Young
against the Minister of Defence, Armscor and others relating to the Strategic
Arms Procurement process have now been resolved.
An agreement concluded by the parties provides for the irrevocable withdrawal of CCII's claims for damages which, with interest, amounted to nearly R300 million. Two claims for defamation brought by Dr Young have also been withdrawn. Two further court actions relating to the provision of information have similarly been resolved. CCII and Young will receive a contribution between them in the amount of R15 million from the state without admission of liability.
The legal costs incurred to date and the need for the further allocation of time and considerable expert resources going forward were fundamental factors in the parties' decision to search for a constructive resolution.
This brings to an end years of complex defended litigation on terms amicably agreed upon. The parties express the hope that they will continue to enjoy cordial relations.