Opposition parties demand action over eThekwini's costly legal disputes
Pressure is piling on eThekwini Municipality mayor Cyril Xaba to take action after the City incurred legal and interest costs after failing to pay a service provider.
Image: File Photo
Opposition parties in the eThekwini Municipality have called for accountability from the officials who have caused the City to incur costs in a R30 million tender legal battle between the City and the service provider which ended up in the Constitutional Court.
Last week, the Constitutional Court dismissed the City's leave to appeal the Supreme Court of Appeal judgment - the City wanted the upper courts to overturn the Durban High Court ruling in 2022 which ordered it to pay Daily Double Trading an amount of R30 million as a settlement to the R43 million claim the company had made for work done. The City's argument was that it did not authorise an attorney who reached a settlement with the service provider therefore it could not be liable for the payment, however, the City did not oppose the matter in court.
With the matter dragging on from 2018 at a cost of 10% interest, the City is now liable for an extra R20 million in costs - with significant legal costs on top of this.
In the wake of the Concourt decision, the DA on Sunday called for the immediate suspension of City Manager Musa Mbhele and his referral to the Financial Misconduct Board. In a statement, the party said the damages stem from the municipality's 2013 decision to cancel contracts with Daily Double Trading 479CC, adding that courts previously ruled that the cancellation was unlawful.
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'The DA believes that, as the head of the city's administration, Mbhele has a duty to safeguard public funds and not act recklessly when ratepayers' money is at stake. The party believes that his conduct in this matter warrants a formal investigation by the Financial Misconduct Board and that he should be suspended from his duties pending the outcome.
"The City manager had every opportunity to comply with previous court orders related to this matter but refused to, in the process, wasting public money to defend the indefensible,' said the party.
Joining the calls, ActionSA provincial leader, Zwakele Mncwango also called on Mbhele to be liable as an accounting officer or else tell the council who had provided legal advice to him to continue defending the matter after several court judgments.
Mncwango also questioned the capabilities of the City's legal services unit as the continued dismissal of the case right up to the Constitutional Court meant that the City had been receiving poor legal advice.
'There is a serious problem here, whether Mbhele was appealing this matter (based) on his opinion that the City legal services are incompetent. It is not a legal opinion but a political one,' said Mncwango.
The EFF's eThekwini chairperson Themba Mvubu said while his party commended the effort by the municipality to try and save taxpayers' money, there was a need find the officials who illegally authorised to negotiate a settlement with the service provider, without the necessary authority.
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