Siemens Taken Court Over Breach Of Contract

by Mahakamani News

Siemens Limited has been sued over a debt of Sh 43 million plus Sh 20 million interest owed to Enterprise Generale Malta Forrest Entity.

The company moved to court after Siemens Limited breached the contract in which Malta had entered with Isolux Ingenieria SA (ISOLUX) as a sub-contractor to construct transmission line to Ethiopia.

Through Mohammed Muigai Advocates, Malta claims that it executed the works and were entitled to payment but before the same could be effected by Isolux Ingeniera, which is a Spanish company, it was placed under management in Spain due to liquidity problems.

The Contract expressly provided that ISOLUX could assign all the rights and obligations of the contract to a third party including but not limited to Siemens Aktiengesellschaft, the Defendant.

Through a letter dated June 27, 2017 ISOLUX notified the Plaintiff that it had assigned the contract to Siemens, the Defendant to substitute ISOLUX as the contractor. The Defendant was to assume all rights and obligations relating to the ISOLUX subcontracts.

As a consequence, they are indebted to the Plaintiff to the sum of Sh 43,539,922.38 and USD. 211,957.90 accruing interest at the rate set out in the contract.

“Even though there have been numerous demands, Siemens has not been willing to settle the claims due subcontractors,” according to court documents.

They have simply been stringing subcontractors along most of whom are Kenyan companies with no intention whatsoever to payments due from them.

MaIta said that as provided by the contracts, upon execution of the works due from the plaintiff under contract, the plaintiff raised requisite invoices for settlement by ISOLUX INGENERIA S, A, which have not been settled.

In the affidavit of Christophe Fierens, Malta entities Company director said that all indeed Siemens limited owes them over Sh 43 million and USD 211,957 plus interest.

“Despite demands and notices of intension to sue, Siemens has declined, refused or neglected to settle the outstanding amount due to Generale Malta Forrest Entity,” said Fierens.

The company further states that Siemens has been not willing to settle the claims due to the Enterprise company

He says at the hearing of the dispute he will ask the court to pass judgement in favor of the Enterprise company that executed the contract

Siemens limited has until next week to file it’s response to the case.

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