eThekwini Municipality's legal challenges: Officials clarify the impact of recent court rulings
eThekwini Municipality's head of Legal, Malusi Mhlongo and municipal manager Musa Mbhele at a media briefing held on Thursday on recent court judgments against the City.
Image: Doctor Ngcobo / Independent Newspapers
An official who issued an illegal instruction to offer a settlement to a service provider, which has subsequently resulted in the eThekwini Municipality having to pay R53 million, will be dealt with. This was said by senior municipal officials who were at a media briefing held yesterday by the City, which was aimed at dispelling concerns about the mismanagement of ratepayers' money through fruitless litigation.
The officials also defended city manager Musa Mbhele. They asserted that he is being unfairly maligned when the cases predate his term, emphasising that he has acted with integrity and has the full authority and support of the council.
The City's Head of Legal, Malusi Mhlongo, discussed various legal cases involving the municipality. One significant case was the dispute between the City and Daily Double Trading. Recently, the Constitutional Court concluded the matter by denying the City the right to appeal an earlier judgment that found in favour of the company.
At issue in the court case was a settlement agreement that the municipality entered into years ago after being sued by the service provider. The City contends that the agreement was illegal because the official who authorised the settlement lacked the necessary authority. While the company initially claimed R30 million, the total has now escalated to R53 million, including accumulated interest.
Mhlongo stated, 'We are in the process of complying with the order. As soon as the judgment from the Constitutional Court was issued, we instructed the representatives of the company to produce an invoice.' He added that action was initiated on the first day following the judgment, and the payment process is now underway. When questioned about the role of the city's lawyer who entered into this arrangement, Mhlongo clarified that it was a city official who provided an illegitimate instruction for the settlement agreement without the power to do so.
'With the records available, the identity of the person who gave the instruction has become known, but I am not at liberty to publish his or her name at the moment because it is a matter that is still under discussion,' he said. It was not immediately clear how long the City has known the identity of this person and the exact nature of the discussions that are taking place.
Video Player is loading.
Play Video
Play
Unmute
Current Time
0:00
/
Duration
-:-
Loaded :
0%
Stream Type LIVE
Seek to live, currently behind live
LIVE
Remaining Time
-
0:00
This is a modal window.
Beginning of dialog window. Escape will cancel and close the window.
Text Color White Black Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Transparent Semi-Transparent Opaque
Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps
Reset
restore all settings to the default values Done
Close Modal Dialog
End of dialog window.
Advertisement
Next
Stay
Close ✕
Ad loading
The City also dismissed any suggestion that it failed to put up its case in court, stating that it provided evidence through affidavits rather than via individuals who were summoned to testify. Mhlongo also addressed two other cases. He revealed that on Wednesday, another judgment went against the City concerning the rental of a marquee from a company called Bless Joe Trading.
The City had been renting a marquee to accommodate displaced individuals at a cost of R208,000 per day, which was intended to last for only 14 days but ended up remaining for over a year. The owner of the marquee is now demanding close to R73 million from the City. Mhlongo clarified, 'The judgment stated that we must pay for a year at market-related prices.
'The R208,000 a day was unaffordable, so even if we have to pay R50,000 as a market-related price, that is still a saving compared to R208,000 per day. Therefore, the judgment is not for R73 million.' Additionally, Mhlongo mentioned another case involving a company where it was reported that R500 million was being claimed from the City. He stated that the claim they are aware of from the company is for approximately R41 million.
Following the departure of Sipho Nzuza as city manager, the service provider approached the municipality, claiming to have conducted intelligence work on behalf of the municipality. However, the service provider could not provide a contract or evidence of the work performed, stating that it was too sensitive. Mhlongo said, 'We cannot just give money to a service provider when we do not know what work they have done; we could be implicated in having paid our friends, and we advised him to sue. That way, he can present his evidence in court, ensuring a transparent process.'
He said the company did take the matter to court and they were now waiting for a court date, adding, in the meantime, they have been bombarded with letters from politicians and the media (about the matter). Mhlongo asserted that it is improper for critics to label court losses as wasteful expenditure.
He stated, 'We are defending ratepayers' money, and such actions can never be construed as wasteful.' Mbhele expressed his commitment to defending the interests of ratepayers. He said a few court rulings against the City were being used to paint it in a negative light, adding that the municipality had won the majority of the cases brought against it.
THE MERCURY
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
IOL News
14 hours ago
- IOL News
How the Correctional Services plans to allocate R1. 2 billion for prisoner food provision
The Department of Correctional Services has placed the provision of food for prisoners as one of the top four cost drivers of its budget after compensation of employees, property payments, and public-private partnership support. Image: Timothy Bernard / Independent Newspapers The Department of Correctional Services has allocated R1.2 billion for the provision of food for its more than 100,000 prisoners in the 2025/26 financial year, Minister Pieter Groenewald said. Responding to parliamentary questions from EFF MP Betty Diale, Groenewald said the department spent R1.4 billion on the provision of food on prisoners in 2023/24 financial year. The amount had increased to R1.5 billion in the last financial year that ended in March 2025. 'For the 2025/26 financial year, the department allocated R1,286,972,000 for the provision of nutrition to inmates,' he said. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading In its 2025-2030 strategic plan, the department places the provision of food for prisoners as one of the top four cost drivers of its budget after compensation of employees, property payments, and public-private partnership support. The document puts the provision for food to the tune of R952,975. Groenewald also said the department planned to maximise the utilisation of the services of the prisoners to produce food for themselves, to enable the department to redirect funds to other essential programmes. He said the prisoners will participate in the production workshops in agriculture to maximise their skills utilisation for bread and agricultural production for their ration. 'The self-sufficiency and sustainability programme in the department is centred around offender development, through the provision of work opportunities to offenders in bakeries and agriculture. Expansion of bakeries and agricultural projects towards an increase in offender skills utilisation for food production,' he said. The department's strategic plan document states that the department wants to become self-sustainable through activities such as those in production workshops, bakeries, agriculture, skills development, formal education and training, as well as through arts and culture. 'The department will expand marketing of production workshops' products and services to other client departments to improve revenue generation.' Meanwhile, Groenewald revealed that the cost per capita per inmate incarcerated for the 2025/26 financial year is R462.13 per day. Asked how his department managed financial implications for imprisonment of foreign nationals, he said there were 13,181 sentenced foreign nationals in prisons as at May 4 this year. 'The total cost to accommodate 13,181 sentenced foreign nationals on 4 May 2025 was R6,091,335.53 per day.' He stated that foreign national prisoners were not a separate category of inmates. Groenewald added that there were currently no bilateral agreements with neighbouring countries to transfer sentenced foreign national prisoners to serve in their countries of origin. 'The DCS is in consultation with the South African Police Service, Department of Home Affairs, Department of Justice and Constitutional Development, and Department of International Relations and Cooperation to formalise a South African procedure to inter-state transfer of offenders.'
IOL News
18 hours ago
- IOL News
Msunduzi ratepayers celebrate justice as former fleet supervisor receives 10-year sentence
Msunduzi Municipality ratepayer associations welcomed the sentencing of a former fleet supervisor to 10 years imprisonment for corruption in the Durban Specialised Commercial Crime Court on Thursday. Image: Independent Newspapers Archives Msunduzi Municipality ratepayer associations welcomed the sentencing of a municipal worker to 10 years imprisonment for corruption on Thursday. The Durban Specialised Commercial Crime Court sentenced Nhlakanipho Dlamini, 46, for two counts of corruption for an offence he committed in January 2020 while he was employed as a fleet supervisor in the Msunduzi Municipality. Lieutenant Colonel Simphiwe Mhlongo, spokesperson for the Directorate for Priority Crime Investigation (Hawks-DPCI), said that during the execution of his duties, Dlamini demanded a gratification of R100,000 from the service provider to process a payment of R1.5 million that was owed by the municipality. Dlamini only processed a payment of R1 million and continued to demand cash to process the remaining amount. 'An intensive investigation was conducted, and an undercover operation followed. Dlamini was caught red-handed after collecting cash from the complainant. He was placed under arrest and charged with corruption,' Mhlongo said. On August 27, 2024, Dlamini was found guilty on two counts of corruption. The Northern Areas Residents and Ratepayers Association (NARRA) acknowledged the prosecution team for their diligence and commitment to upholding the rule of law. Jimmy Naidoo, chairperson of the NARRA, said this successful outcome is a strong indication that consequence management is both possible and necessary in the public service. Naidoo believes this case must serve as a precedent for ongoing and future investigations, as it is clear that corruption remains entrenched in many municipalities. He added that the NARRA continues to advocate for transparency, accountability, and zero tolerance for corruption. 'We urge that more investigations be pursued vigorously so that those who abuse public resources are held to account. Only through consistent and decisive action can public trust in local governance be restored. We applaud the investigating and prosecution teams for getting to the root of the problem and encourage all oversight bodies to remain steadfast in the fight against corruption.'
IOL News
2 days ago
- IOL News
Premier Winde announces intensified efforts against extortion in Western Cape
Premier Alan Winde outlines the Western Cape's intensified efforts to tackle extortion through cross-sector collaboration. Image: Armand Hough/Independent Newspapers. The Western Cape government is intensifying its battle against extortion by implementing a comprehensive, collaborative strategy that brings together law enforcement, the private sector, and local communities. Premier Alan Winde has described this issue as a 'cancer' that threatens both economic growth and public safety in the province. Speaking at his weekly digital press conference (digicon) on safety, Premier Winde was joined by Business Against Crime South Africa (BACSA) Western Cape Chairperson, Hubert Paulse, to showcase the province's increased multi-sectoral efforts to confront the growing scourge of extortion. 'This was about the whole of government and society coming together to coordinate ourselves better to confront this 'cancer' called extortion and to discuss how we are going to rid ourselves of this horrendous crime that impacts so many of our residents and businesses,' said Winde. 'It strangles economic growth and job creation. Daily, it threatens residents' safety and their livelihoods, robbing them of opportunities and their dignity.' Winde stressed that the only way to dismantle these extortion networks, often referred to as 'extortion mafias', is through collaboration across all levels of society. 'The only way we will eradicate 'extortion mafias' is if we all work together,' he said. Extortion emerged as a key focus at this week's Western Cape Government Multi-Sectoral Anti-Extortion Summit, which convened provincial ministers, SAPS representatives, the City of Cape Town, and academics to coordinate strategies aimed at combating the extortion crisis affecting local communities and businesses. BACSA, a non-profit public-private partnership established in 1996, has played a leading role in building safety partnerships across the country. Paulse highlighted how the organisation's initiatives are being used to fight extortion and other crimes, stating:` 'Our message is simple but powerful. We foster collaboration with all stakeholders to fight crime. When we work together, we do not just reduce crime, we restore hope. And with hope comes confidence. Businesses become more willing to invest, and that investment leads to the creation of more jobs.' Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad Loading One of BACSA's key crime-fighting tools is its Eyes and Ears Initiative (E2), a technology-driven platform that links private security companies and other vetted partners with SAPS command centres. According to Paulse, this network uses surveillance tech such as drones and licence plate recognition to bolster real-time law enforcement responses. 'The private security industry outnumbers the police service 4:1. We are using that geographical footprint to increase the operational response and awareness of the SAPS,' said Paulse. He added that the Western Cape is 'the first province that has E2 controllers in all 6 policing districts.' Premier Winde reinforced the need to outpace criminals by embracing innovation. 'Criminals are using technology. We have to be one better than them.' Beyond tech solutions, Winde reiterated the importance of community involvement through neighbourhood watches and community policing forums. 'There is no doubt that residents who form or join NHWs know more about what is going on in their areas than anyone else, and they form essential partnerships with SAPS and municipal law enforcement,' he said. Paulse echoed this view, saying, 'We call it 'community-oriented policing'. That is what we are promoting.' Ahead of the digicon, Winde also chaired a meeting of the Western Cape Provincial Safety Council, where he welcomed a recent proposal by Police Minister Senzo Mchunu to give metro law enforcement agencies more authority. 'This is a positive step forward, we must all be obsessed and driven by the same thing: to build a safer, prosperous province and country,' the Premier said. The council also received updates on the Safer City Collaboration Cooperation Agreement signed in August 2024, which is focused on strengthening intelligence-sharing and operational coordination between SAPS, provincial departments, and the City of Cape Town. Condemning recent taxi-related violence, Winde praised the swift and coordinated response. 'It is intolerable that disputes are 'negotiated' through the barrel of a gun. I want to commend all the role players, from provincial traffic and city law enforcement to SAPS and our officials, for the speed and coordination with which they responded to the violence and threats. You truly showed how powerful we can be when we work together.' IOL News
