INSS ordered to comply with 1.5 billion MT contract

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INSS ordered to comply with 1.5 billion MT contract

1:37 CAT | 16 Nov 2018

The Administrative Court has ordered the National Social Security Institute (INSS) to comply with a contract it entered into with the construction company Nadhari Opway for a building in central Maputo which it has since taken possession of without complying with the terms of the contract between the parties.

This is the building that is under construction along the Avenida Zedequias Manganhela next to the Desportivo de Maputo Sports Club pavilion. For its construction, the National Social Security Institute entered into a promise-of-sale agreement with Nadhari Opway on 10 October 2014. The cost of the building was 1.5 billion meticais and the work was to be carried out within 22 months. It was agreed that the INSS should pay 30% of the total amount immediately, the remaining 70% to be paid in monthly instalments.

In compliance with the agreement, 14 days after signing the contract – on October 24, 2014 – the INSS transferred more than 436 million meticais to the Nadhari bank account.

During the execution of the contract, the INSS failed to pay more than 113 million meticais of the remaining 70% over the course of three consecutive months, and the contractor also requested the revision of the initial value of the work due to increasing costs.

The INSS refused to make any adjustment and demanded compensation for the delay in the delivery of the building. When its request failed to transpire, it took ownership of the property using administrative possession, on the grounds that it was built with public funds.

The construction company appealed to the Administrative Court, which, through ruling Number 54/TACM/2018, ordered the INSS to comply with the agreement reached with Nadhari Opway, and make the payments agreed upon for the construction of the building.

By Francisco Mandlate

Source: O País