Legal spat between health dept and CDC settled

26 September 2018 | Web Article Number: ME201811922

Government & Municipal
Special Economic Zones

THE Eastern Cape Department of Health (ECDoH) and the Coega Development Corporation (CDC) have reached an amicable resolution to a dispute over the payment of professional management fees.

The impasse related to services rendered by the CDC in its role as a programme Implementing Agent (IA) on the Health Infrastructure Delivery Programme.

“The two organizations have reached mutual beneficial settlement of outstanding issues of dispute. The department holds Coega Development Corporation as a responsible and reputable implementing agent [which] has achieved exceptional quality of work in contracts we had jointly implemented for the province,” said ECDoH Head of Department Dr Thobile Mbengashe.

The agreement follows an arbitration award by a panel of three independent experts to settle the first phase of the dispute relating to management fees for services rendered by CDC to ECDoH as a programme implementing agent.

Discussions are continuing to settle phase two, the proposed Service Delivery Agreement (SDA) between ECDoH and CDC for the period 2018 onwards.

Both parties have committed themselves to improving their relationship and to continue to work together in the implementation of the ECDoH projects.

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