12 August 2004 Press Release JOBURG COMES OUT TOPS! An arbitration ruling on 28 July 2004 found the City of Joburg liable to pay only R12.5 million including interest of an initial claim of R40million to ERM (Enterprise Risk Management), formerly known as Specialised Outsourcing Ltd for services rendered whilst contracted to the City. Director of Expenditure Mr Kayoom Bhyat was upbeat on the award. He said, "After two years of arbitration, this is a victory for the City". Continuing Bhyat said, " At no stage of the arbitration were we not confident of winning our case against ERM". According to him, this is a saving of R27 million for the City on the initial claim of R40million. Bhyat said that it was his duty as Director Expenditure to examine large invoices prior to payment in relation to work done by any company on behalf of Council. A number of invoices submitted by ERM for payment could not be justified. "A dispute arose which subsequently ended in an arbitration ruling which we are happy with", said Bhyat. He added, "Good governance and transparency is essential in our daily functions because we are working with public funds and are accountable to our ratepayers". Ends Virgil James Media Liaison Officer Communications Telephone: 407 7226 Facsimile: 403 3494 Cell: 082 467 9415 Email: virgilj@joburg.org.za