KZN Cogta MEC demands clarity from eThekwini Municipality on R30 million matter and legal costs
KwaZulu-Natal Department of Cooperative Governance and Traditional Affairs (Cogta) MEC Reverend Thulasizwe Buthelezi.
Image: KZN Cogta / Facebook
The MEC for Cooperative Governance and Traditional Affairs, Thulasizwe Buthelezi, has written to the eThekwini Municipality, demanding a full breakdown of the costs related to the legal matter between the eThekwini Municipality and company, Daily Double Trading.
In the letter, MEC Buthelezi stated that the expenditure, especially on litigation regarding this matter, was reckless.
The eThekwini Municipality and Daily Double Trading have been involved in a protracted legal battle that was finally resolved by the Constitutional Court about a week ago which dismissed the City's appeal against an earlier ruling.
At the centre of the dispute was a settlement agreement entered into between the company and officials of the municipality. Daily Double Trading had been one of the service providers for the municipality. However the municipality terminated the contracts it had with the company.
The company challenged this decision in court, and an out of court settlement was then agreed upon between the officials of the municipality and the representatives of Daily Double Trading. The settlement was worth about R30 million.
Later, the municipality attempted to disown the settlement agreement, arguing that the officials who authorised it had no power to do so. However the company challenged this in court and the court found in the company's favour.
The municipality fought the matter all the way to the Constitutional Court, which dismissed the City's application for leave to appeal the judgment that had found in favour of the company.
This ruling means that the City is now liable to pay approximately R30 million of the original amount and R23 million in interest.
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 his letter, MEC Buthelezi said, "A report is requested within 7 days, providing the total contractual losses suffered and the total legal costs incurred by the City in defending this matter, which proceeded to the Constitutional Court and was dismissed with costs."
"Such a report should also clearly indicate what disciplinary action is being taken by the City. Furthermore, it must outline the oversight taken by the council in embarking on this reckless and costly litigation," said the letter.
The MEC's letter comes after the City held a media briefing last week to discuss the court case and other legal matters. At the meeting, senior City officials said an employee who issued an illegal instruction to offer the settlement will be dealt with.
THE MERCURY
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Eyewitness News
11 hours 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 South African
16 hours 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.
IOL News
16 hours ago
- IOL News
Wynberg faces ongoing urban decay issues following problem building declaration
263 Main Road in Wynberg has officially been declared a problem building under the City of Cape Town's by-laws and Law Enforcement has initiated eviction proceedings for current unlawful occupants. Image: supplied The derelict building at 263 Main Road in Wynberg has officially been declared a problem building under the City of Cape Town's by-laws — a significant step in addressing long-standing concerns about safety and misuse, said ward 62 councillor Emile Langenhoven. However, some residents argue the area is steadily sliding into chronic urban decay. 'The Wynberg precinct is no different from Yeoville or Hillbrow,' said property owner Andrew Charman. 'If Capetonians believe the City has the ability or political will to tackle complex urban management challenges, they are mistaken.' Charman, who owns property in the precinct, described the City's approach as rudderless. 'For over a decade, City officials and political leaders have promised stern action against problem buildings. A high court case against the Uli Heydt building was said to be imminent. Nothing happened.' 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 ✕ He said socio-economic issues also need addressing, including medical support for homeless people with severe mental illness and the open sale of drugs. Langenhoven confirmed that while 263 Main Road was earmarked for the list in 2023, formal declaration only happened recently. 'The process involves inspections, compliance notices, and allowing time for objections or remedial action. 263 Main Road has now been formally declared a problem building. Law Enforcement is now empowered to proceed with evictions of unlawful occupants and to secure the premises.' Mayco member for safety and security, JP Smith, said LEAP is deployed to crime-affected precincts to assist SAPS and is not assigned to Wynberg for by-law enforcement. In response to claims that the City's crime-fighting efforts fail to address the root causes of chronic urban decay, City spokesperson, Luthando Tyhalibongo said, the Mayoral Urban Regeneration Programme (MURP) had deployed 12 Wynberg Ambassadors for patrols, focusing on crime prevention and reporting service faults. 'Community Safety ambassadors have been consistently present for the past six months and during peak seasons over the last three years,' he said. 'Additionally, MURP deployed two-armed response vehicles during the day and night with armed guards providing a visible security presence that directly addresses social challenges contributing to crime in the CBD area. These interventions had reduced crime within the CBD and Public Transport Interchange areas over the last few months.' Responding to complaints about grey water runoff, illegal dumping, potholes, and by-law violations, the City's Mayco member for water and sanitation, Zahid Badroodien, said teams rely on logged service requests to identify faults like burst pipes and overflowing sewers. He further urged residents to always report such service requests to help teams to attend to these matters as quickly as possible. Cape Argus
