Mbabane – Flying Squad Security (Pty) Ltd has sued the Eswatini Water and Agricultural Development Enterprise (EWADE) for E249 440 in damages, alleging that the statutory body breached a contract by terminating its security services agreement without giving the required notice.
In a summons filed before the High Court under case number 2535/26, the security company claims that EWADE unlawfully terminated their agreement with effect from April 1, 2026, despite a contractual provision requiring at least 90 days’ written notice.
Flying Squad Security is seeking payment of E249 440, which it says represents the income it would have earned during the remaining period of the contract, together with interest at nine per cent per annum and legal costs on an attorney-and-own-client scale.
According to the particulars of claim, the two parties entered into a written agreement on June 29, 2015, under which Flying Squad Security was to provide security and gardening services at sites identified in the contract.
The agreement provided for monthly payments within 30 calendar days of the company submitting invoices for work performed.
The company claims that the contract was initially due to expire in June 2018 but contained a clause allowing automatic renewal for further three-year periods if the service provider indicated its intention to renew and EWADE failed to respond within two weeks.
Flying Squad Security alleges that it notified EWADE of its intention to renew the agreement in March 2018, but the enterprise failed to respond within the stipulated period.
It further claims that the agreement was automatically renewed in 2018, 2021 and 2024, extending its validity until June 2027.
Alternatively, the company argues that the parties tacitly renewed the agreement through their conduct, as it continued providing security services while EWADE continued receiving the services, approving invoices and making payments.
However, Flying Squad Security alleges that EWADE issued a written termination notice dated March 30, 2026, which it received the following day, purporting to end the agreement with effect from April 1, 2026.
The company contends that the notice did not comply with the 90-day termination requirement and constituted a breach of contract or repudiation of the agreement.
On April 13, 2026, Flying Squad Security says it sent EWADE a letter of demand calling on the enterprise to remedy the alleged breach, withdraw the termination or compensate it for the resulting loss.
According to the particulars of claim, EWADE failed or refused to take any of these steps or make payment.
The security company maintains that it suffered damages of E249 440 as a direct consequence of the alleged breach, claiming that the amount represents contractual income it would have earned had the agreement continued for its remaining term.
It also states that it took reasonable steps to mitigate its losses but was unable to secure alternative engagements to replace the lost income.
Flying Squad Security is asking the High Court to order EWADE to pay the claimed amount, interest from the date of service of the summons until final payment, and legal costs.
Discussion about this post