TV licence fee collection company Lorna Vision is taking legal action against the SABC for refusing to pay it millions for its collection work.
The City Press reported that Lorna Vision argued in court papers it has met its contractual obligation to collect around R300 million in outstanding fees.
It said the SABC needed to stop hiding behind allegations that the contract with Lorna Vision was suspect.
In August 2016, the Sunday Times reported that former acting SABC CEO James Aguma awarded a contract to Lorna Vision in 2015 without going out to tender.
According to the deal, Lorna Vision would create and implement a pilot debt collection system – getting a 10% cut of 10,000 TV licence renewals a month.
“But in its contract, the scope was expanded to include being paid a cut for collecting from pirate viewers, too,” reported the Sunday Times.
Documents showed that Lorna Vision was paid consulting fees for its 24-month pilot upfront, before all services were delivered.
The SABC is now opposing Lorna Vision’s legal application, saying the agreement was concluded in contravention of the SABC’s provisions.
“Lorna Vision cannot lawfully be entitled to receive payment flowing from an unlawful and/or irregular contract,” said the SABC.