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ACSA and Khuselani security settles arbitration matter
Tuesday, July 30, 2002 | 00:00

Airports Company South Africa (ACSA) and Khuselani Security & Risk Management (Khuselani) have reached a settlement agreement in terms of which a physical security contract between the two parties is regarded as cancelled, the Company announced today. (See attached background information)

In terms of the agreement, Khuselani has withdrawn all claims it may have against ACSA arising from the tender to provide physical security services at all ACSA airports.

ACSA has agreed to allow Khuselani to service existing contracts to various third parties at Johannesburg, Cape Town and Durban international airports until they run their course but will not be renewed or extended.

Khulani Fidelity Services Group and Score Force Enlightened Security will continue to provide ACSA with physical security services on a temporary basis until an open tender for a suitable company is finalised.

The arbitration, which the parties were contractually bound to enter into, was in relation to ACSA's right to cancel a contract between the two parties.

ACSA is delighted that this matter is now behind us and wishes to commend the teams who were involved in the negotiations for finding a win-win solution for both parties.

Background information

The R99 million three-year contract, effective from 1 September 2000, was on 30 November 2001 cancelled after several security breaches, particularly at O.R. Tambo International Airport (ORTIA), over an extended period of time.

These breaches were viewed as serious and were not acceptable in terms of ACSA's obligations to the flying public.

Khuselani made an urgent application to the Johannesburg High Court in late November to stop ACSA from cancelling the contract. The matter was dismissed with costs.

Before the Court proceedings, the intention to participate in the arbitration process was communicated to Khuselani. Names of possible arbitrators were suggested and Khuselani was duly informed that Advocate Tom Plewman was available to conduct the arbitration on 14 and 15 November 2001 and that a meeting had been set for 7 November 2001 to discuss way forward.

The meeting did not take place because Khuselani raised new issues which were not part of the original dispute and did not require urgent resolution.They also did not make themselves available for the meeting. 

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