By David Gold
November 9 – An African businessman is seeking 506 million South African rand (£40 million/$63 million) from the Department of Education in Gauteng to compensate the losses made by his now liquidated hospitality company, set up to provide a range of services for the 2010 World Cup.
Soweto Focus Point, set up by Channon Merricks, company teamed up with a number of local businesses in each Province in the country to provide cleaning, security, transport and catering services, among other things.
Investors were promised RS (South African rand) 2.9 million (£227,000/$363,000) but never received this, despite having borrowed money in some cases or taken out bonds.
The investments made were used to pay schools for accommodation but they failed to attract tourists to stay there.
Investors took Merricks to court in Johannesburg over the money they believe is owed to them, and the Soweto Focus Point owner has subsequently started a case at the High Court in the city, demanding the compensation from the Gauteng education department.
Merricks claims there was an agreement with the department but their spokesman categorically denied any culpability on their part, alleging that the deal in place was with school governing bodies.
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