Ratepayers in Durban face hefty costs due to eThekwini Municipality's legal errors
Ratepayers in Durban are left to shoulder the financial burden of a R30 million legal battle involving the eThekwini Municipality.
Image: IOL / RON AI
Durban's ratepayers are being forced to absorb the financial consequences of officials who continue to make unlawful decisions without fear of accountability
Asad Gaffar, chairperson of the eThekwini Ratepayers Protest Movement (ERPM), remarked after the city incurred costs in a R30 million tender legal battle between the eThekwini Municipality and a service provider, Daily Double Trading, which culminated in a recent decision by the Constitutional Court.
The Constitutional Court dismissed the municipality's leave to appeal against 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 R30 million as a settlement to the R43 million claim the company had made for work done.
The municipality argued that it did not authorise an attorney to settle with the service provider; therefore, it could not be liable for the payment. However, it did not oppose the matter in court.
The municipality is now liable for an additional R20 million in expenditures, including substantial legal fees, as a result of the matter continuing since 2018 at an interest rate of 10% annually.
Reverend Thulasizwe Buthelezi, the MEC for the Cooperative Governance and Traditional Affairs (Cogta), called on the municipality to recover the money from the officials involved in causing the wasteful expenditure.
Gaffar said the ERPM reiterates its longstanding concern over the widespread culture of impunity, maladministration, and legal recklessness within the municipality.
He said that ratepayers were being forced to absorb the financial consequences.
He applauded Buthelezi's decisive intervention and his demand for full disclosure of legal costs, as well as disciplinary action against those responsible.
'This is not merely an issue of legal error, but it is a systemic governance failure that has placed further strain on an already embattled municipality, struggling with service delivery backlogs, infrastructure decay, and financial instability,' Gaffar said.
The ERPM called for the full implementation of consequence management measures, including disciplinary processes, civil recovery of losses, and, where warranted, criminal referrals.
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