Danya Cebus Ltd. (TASE: DNYA) has rebuffed a demand by Israel National Roads Company Ltd. to replace some dividers on newly completed Road 431 between Rishon LeZion and Modi'in. The National Roads Co. claims that the dividers are a safety hazard and should be replaced with temporary dividers at a cost of tens of millions of shekels.
Danya Cebus has notified the government tenders committee that it wants an objective external inspector to examine the dividers in question and provide an expert opinion as to their safety.
The National Roads Co. functions as the supervisor for Road 431. It notified Danya Cebus that it found that some of the road dividers violated installation procedures. The National Roads Co. also asked the tenders committee to suspend all payments to Danya Cebus, including the NIS 250 million set-up grant, until the flaws are fixed.
Danya Cebus replied that it rejects this demand, and that it will not consent to bearing the extra costs for replacing the dividers.
Danya Cebus is the contracting arm of Africa-Israel Investments Ltd. (TASE:AFIL; Pink Sheets:AFIVY), controlled by chairman Lev Leviev. Africa-Israel's share fell 4% today to NIS 30.82, and Danya Cebus fell 5.4% to NIS 5.32, as part of the general plunge in the TASE.
Published by Globes [online], Israel business news - www.globes-online.com - on March 1, 2009
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