Tenix ends Oakton contract, demands $19m

The traffic infringement and management branch of Tenix Solutions has terminated a contract with IT services firm Oakton and has filed a claim for $19.36 million in damages, Oakton alleged this morning.

The traffic infringement and management branch of Tenix Solutions has terminated a contract with IT services firm Oakton and has filed a claim for $19.36 million in damages, Oakton alleged this morning.

"After the close of trading on the Australian Stock Exchange on 15 February, Tenix served on Oakton's contracting subsidiary a notice purporting to terminate the relevant contract and a claim for damages estimated at $19,364,900," Oakton said in a statement.

"Tenix's notice was preceded by the referral to arbitration by Oakton of several disputes arising from the contract."

Oakton did not say which specific contract the dispute referred to. However, the division of Tenix which Oakton named appeared to have a contract with the Victorian Government to deliver Infringement Management and Enforcement Services in the area of traffic control.

Oakton has been reported to have several contracts with Tenix over the past decade — for example, a $1.5 million deal inked in 2004 to provide Tenix with IT services relating to the development of an infringement management solution, and another $8 million deal in late 2007.

Oakton chief executive Neil Wilson wasn't immediately available to comment on the deal termination, but Oakton said in its statement that it denied the grounds on which Tenix had "purported" to terminate the contract and had referred the claim to its lawyers.

A spokesperson from Tenix has not yet responded to questions on the matter.

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