City explains recent court losses' impact

Officials provide clarity on recent adverse rulings

- THAMI MAGUBANE

AN OFFICIAL who issued an illegal instruction to offer a settlement offer to a service provider, which has subsequently resulted in the eThekwini Municipality having to cough up 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.