ARTICLE · 02 NOVEMBER 2025

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Consequences Of A Liquidator Ceding Rights Under A Contract

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The Western Cape High Court recently delivered judgment in a dispute between Phuhlani Bafazi Construction (Pty) Ltd, trading as Chuma Security Services ("Phuhlani"), and the Passenger Rail Agency of South Africa...

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The Western Cape High Court recently delivered judgment in a dispute between Phuhlani Bafazi Construction (Pty) Ltd, trading as Chuma Security Services ("Phuhlani"), and the Passenger Rail Agency of South Africa ("PRASA"). The case concerned the lawfulness of PRASA's termination of security services and the enforceability of contractual constraints in a public procurement context. Phuhlani sought interim interdictory relief to continue providing services after PRASA issued a late-August 2025 instruction to vacate PRASA sites. For this, Prasa asserted that no lawful relationship existed between PRASA and Phuhlani.

The dispute originated from a 2011 master agreement between PRASA and High Goals Investments CC ("High Goals"), which traded as Chuma Security Services, for the provision of security services. The agreement was repeatedly extended and eventually operated on a month-to-month basis.

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