Constitutional Court dismisses eThekwini Municipality's appeal over R30 million payout
eThekwini City Manager Musa Mbhele.
Image: Supplied
The Constitutional Court has dismissed eThekwini Municipality in its long legal battle over R30 million payout to the service provider, Daily Double Trading 479 cc /Pholobas Projects.
The municipality had approached the apex to appeal an earlier Durban High Court and Supreme Court of Appeal ruling that favoured the service provider. The Constitutional Court said the application brought by the municipality bears no reasonable prospects.
The city revoked its contracts after discovering anomalies in the company's tender award during its investigations a few years ago.
It was reported that in 2021, the company took the municipality to the Durban High Court, demanding that the cancellation of the contracts and blacklisting be declared unlawful, and for the court to rule that the municipality was indebted to it in the sum of R44.1m the amount owing for the cancelled contracts.
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 ✕
However, before the Concourt could hear the matter, an out-of-court settlement was reached by the parties.
A deal was struck where a municipal attorney, identified as Mr Moloi at the time, agreed that the municipality would give Daily Double R30 million as a settlement for its illiquid damages.
According to the affidavit of City Manager Musa Mbhele, when this came to the attention of the former city manager, Sipho Nzuza, he refused to approve the R30 million payout.
'He stated he would not approve such a transaction as no one, including himself, had the authority to sanction payments above R30 million. He said whoever had told Moloi to strike a deal with Daily Double had been misguided,' Mbhele wrote in his affidavit.
Mbhele stated that Nzuza indicated that this matter would need to go before the eThekwini full council for a decision.
'This matter was never placed before the council, and Nzuza made it clear in his affidavit before the High Court that he had refused to sanction the questionable settlement,' he added.
Former eThekwini city manager Sipho Nzuza.
Image: Zanele Zulu / Independent Newspapers
Mbhele said that to this day, he has no idea who authorised or told Moloi to offer the company R30 million.
'If the municipality were to pay this money, no one would account for it,' he said.
Additionally, Mbhele said this case raised questions of law that will impact not only eThekwini Municipality but also other municipalities throughout the country.
He said the case required the Constitutional Court to clarify the ambit of an attorney's competency to enter into settlements in respect of municipalities and similar organs of state.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Eyewitness News
a day ago
- Eyewitness News
Godongwana thinks political parties should be wholly funded from national fiscus
CAPE TOWN - Finance Minister Enoch Godongwana is of the view that political parties should be wholly funded from the national fiscus and not have to accept private donations. Speaking to the Independent Electoral Commission (IEC)'s political funding conference in Durban on Thursday, Godongwana said it's unacceptable that some political parties don't submit annual audited financial statements. Godongwana's own political party, the African National Congress (ANC), was among those fined by the Electoral Court last year for falling foul of the law in this regard. The finance minister questioned whether the IEC was the appropriate body to keep political parties in check over their finances, saying it puts the institution at risk of accusations of bias and a lack of independence. "I'm from the ANC. When they do it to us, we say they've been captured. When they do it to another party, they say Ramaphosa has sent them." With a court challenge still pending over plans to double the annual private funding limit to R30 million, while also raising the threshold for declaring donations to R200,000, Godongwana said he hoped the matter was settled before next year's local government elections. He said that the conference should consider the implications of political parties purely being funded by the state. "That raises the question: What is the optimal level of funding and what is the criteria for that? We complain that departments are inefficient. Should we fund political parties for inefficiencies as well?" Godongwana also hinted that if the revenue allowed, more money could be set aside to fund next year's local government election, in addition to the R1.4 billion already allocated in this year's budget.
The Citizen
a day ago
- The Citizen
Mkhize's luxury cars to go under the hammer
Mkhize's luxury cars to go under the hammer A TOTAL of 13 luxury cars and a tour bus belonging to Shauwn Mkhize will go on auction next week from June 27 to July 2. Mkhize, who was the owner of Royal AM Football Club, was investigated by SARS. Her La Lucia home was searched in August last year, after SARS was granted a preservation order by the Durban High Court. She allegedly owes the revenue services R37m in taxes. Related story: SARS confirms raid of La Lucia businesswoman's home Among the vehicles set to go under the hammer on Bidder's Choice are a 2020 Bentley Continental GTC, five BMWs, four Mercedes-Benz, two Toyota Hilux, a Nissan Hardbody and a Volkswagen Crafter. One of the Mercedes-Benz is a Maybach S680 limited edition – only 100 were made in the world – retailing at about R5m according to The football club is also back on the market after a deal between Global Investments and SARS fell through after the company failed to meet the three-day payment deadline. The reserve is R50 000 and the vehicles can be viewed in Johannesburg. For more from Northglen News, follow us on Facebook , X or Instagram. You can also check out our videos on our YouTube channel or follow us on TikTok. Click to subscribe to our newsletter – here At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
The South African
a day ago
- The South African
Lucky Lotto jackpot winner turns R30 wager into R39.5 MILLION!
ITHUBA, operators of the National Lottery in South Africa, have confirmed that there were two winners of the Lotto jackpot on Wednesday, 18 June. The jackpot stood at R78 977 677.80, meaning each of the winners will pocket R39 488 838.90. The first winning ticket was purchased through the Standard Bank banking app with a R200 wager using the quick pick selection method, while the second winning ticket was purchased at a Day and Night Superstore in Yeoville in Johannesburg, with a R30 wager, also using the quick pick selection method. The winner who played via a banking platform has been notified of their winnings by their bank, while ITHUBA has urged everyone else who bought a ticket in-store to check their tickets. The winning numbers were 10, 13, 27, 30, 38, 39 and the bonus ball was 16. 'This draw not only produced one multi-millionaire, but two! Both winners will walk away with significant amounts of money that will undoubtedly change their lives,' says ITHUBA CEO, Charmaine Mabuza. 'The winner service team is eagerly awaiting the arrival of these winners and ready to help and support them every step of the way,' Mabuza added. To help winner's enjoy lasting benefits from their winnings, ITHUBA offers access to certified financial experts who provide valuable financial insights for winners of R50 000 and above. All winners have 365 days from the draw date to claim their winnings, and all National Lottery winnings are tax-free . Participants can check their tickets at retail stores or online through the National Lottery website or social media pages as there are more winners in other divisions. Players must be 18 years or older. Play responsibly. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1 Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
