The SA Gymastic Federation (SAGF) cannot be held liable for a bill of almost R2.6 million run up at the Manhattan Hotel in Pretoria, during the 2014 African Gymnastics Championships, a high court judge in Pretoria has ruled.
The hotel sued SAGF after the federation’s executive team and VIPs were “treated like royalty”, but their massive hotel bill remained unpaid.
The hotel’s managing director Nico Rowan told the court although the hotel had demanded prepayment for the guests, he was placated by a letter stating that there was delay in payment, but that the championships sponsor, Algrodex, would make full payment for the hotel bills.
Manhattan not only provided accommodation, but also transport, spoiled VIPs with goody bags, hosted a VIP cocktail function. The hotel claimed the federation was ultimately responsible for payment.
The federation insisted the Manhattan had concluded an agreement with Algrodex and that members of the management committee appointed to oversee the championships did not have a mandate to act on the SAGF’s behalf, but were acting on behalf of Algrodex when the agreement was concluded.
Judge Dawie Fourie ruled that the hotel had no claim against the gymnastic federation, as it could not prove that an agreement had been concluded between the hotel and the SAGF.
The judge referred to a 2015 affidavit signed by Rowan in which he accused Algrodex of defrauding the hotel.