BotswanaPost in contractual dispute with SA firm
Isaac Pinielo | Friday May 13, 2016 15:01
Interfile was contracted by BotswanaPost in September to provide an Electronic Bill Presentment and Payment (EBPP) hosted on a portal known as PosoOnline.
EBPP is the process of delivering a bill from an originator, the biller, to the receiver, usually the customer.
Under circumstances that BusinessWeek could not establish, the two parties then agreed to terminate the contract in December, 2015 with the South African company being paid P870, 000 in a compromise deal that involved Interfile retaining the PosoOnline clients.
But in a letter of demand that was hand-delivered to BotswanaPost last month, Werksmans Attorneys representing Interfile, demanded payment in the sum of P1.8 million including interest at a rate of 10.25 percent per annum within 15 business days.
In the letter, Interfile is claiming BotswanaPost only paid P270, 000 from the agreed P870, 000 and the parastatal was therefore in breach of contract.
According to the attorneys, at a meeting on December 11, 2015 between representatives of the parties, it was conditionally agreed to negotiate certain terms associated to PosoOnline and work on a strategy going forward.
“At the aforesaid meeting, you (BotswanaPost) verbally committed that BotswanaPost would pay the outstanding amount of P870, 000, however, you have only paid P270, 000,” the letter read in part.
The attorneys wrote that BotswanaPost remains in breach of the agreement in that it had failed, neglected and/or refused to make payment to our client in the amount of P1. 8 million of which amount is now due.
Interfile, through their lawyers, warned that failure to pay the amount will leave them with no option, but to explore all their options as advised in accordance with the provisions of the agreement and the law.
Responding to Interfile, BotswanaPost chief executive officer, Cornelius Ramatlhakwane admitted delays in processing payment but denied being in breach of contract.
Ramatlhakwane said at a meeting held last month, BotswanaPost made a new commitment to pay the remaining P600, 000 in two instalments within an agreed timeframe, which hasn’t lapsed.
He also indicated that there was an agreement that the existing clients should remain with Interfile, and that both parties should do a joint statement to the clients to that effect.
“The termination was based on Interfile demanding payment for the P870, 000 and BotswanaPost was given at least two weeks to confirm payment of the figure or try negotiating.
The new timelines agreed haven’t lapsed and it therefore came as a surprise when we received the letter of demand. My office however regrets that both the teams tasked by our offices to close the matter have rather taken long to meet the set timelines.
BotswanaPost therefore proposes to make full and final payment of P600, 000 in two equal instalments,” wrote Ramatlhakwane.
He said the parties agreed to terminate the brand ‘PosoOnline’ and not to be used by either party going forward.
When contacted for comment, BotswanaPost head of communications, Lebogang Bok said: “The matter in reference is an on-going matter and therefore we will not comment on it”.