Durban — Opposition parties are expecting to get answers on Friday when the eThekwini full council meets on what transpired at the eThekwini electricity unit in Durban where computers and vehicles were attached and removed by the Sheriff of the Court.
Officials attached computers from the unit’s offices and removed an unknown number of cars and bakkies from its parking lot on Thursday.
eThekwini Municipality spokesperson Msawakhe Mayisela confirmed that the Sheriff attached vehicles, equipment and furniture from one of the electricity unit buildings.
Mayisela said a warrant of execution was granted in a matter involving the City and Daily Double Trading 479 CC, as the applicant. The offices at Jeff Taylor Crescent had to be partially closed and the staff were moved to other offices so that their work would not be not hindered.
“The decision by the applicant to attach the City’s assets is as a result of a court case the City lost earlier this year where the service provider was awarded approximately R30 million.
“We took a decision to appeal and were informed that we lost the appeal. This led to the incident,” Mayisela said.
The City had complied with the order to the best of its ability and the legal team was looking into the matter, added Mayisela.
Customer services at the offices would not be affected.
Member of eThekwini Municipality executive committee councillor Yogis Govender claimed that the warrant of execution cited a judgment in the sum of R43.2m, of which R30m was the principal debt and a further R13.2m constituted the interest thereon.
“It appears that the matter between Double Daily Trading, trading as Pholobas Projects – a ”tender entrepreneur“ – has been in court for years and is now at an execution stage,” she said.
Govender said scenes that played out inside and outside the electricity headquarters had sent shock waves through the community and political corridors, as officers of the court were seen carrying equipment and computers away, while vehicles were being loaded onto flatbed trucks to be towed away.
Govender said staff appeared very concerned about whether they would get paid next month or thereafter as all pay and leave section computers were attached and removed.
Govender said the attachment of critical computers and vehicles which formed the backbone of whatever service delivery the ailing unit had previously provided may mean that the unit was now even more crippled.
“At this stage, we are unsure how far-reaching or devastating this will be on the delivery of services in this unit. It remains to be seen in the next few days, how the unit will cope with these tremendous losses and how it will impact service delivery,” Govender said.
“It is unfathomable how the unit or the City's legal compliance unit allowed the situation to reach this stage. A report on this matter, particularly on the judgment, was never tabled at any committee, Exco or even council for consideration, despite it clearly being months old,” she added.
Govender said the document had a court date stamp for May 2022, which inferred that the legal unit representing the City was clearly expecting that this was inevitable if the judgment was not satisfied.
IFP Exco member Mdu Nkosi said the municipal employees and ratepayers were disappointed and frustrated. Nkosi said there were so many things happening in eThekwini which were wrong. He added that the image of the institution had been tarnished.
“I do not think investors will come and invest in eThekwini or any person who would like to do business with the municipality. Drastic changes need to be made. Hopefully, we will get answers,” Nkosi said.
African Democratic Change (ADeC) leader Visvin Reddy said that in 2016 the electricity department had a surplus of R2 billion, and over the years it gradually declined. Reddy found it hard to believe that a profitable unit such as the electricity department could not pay a debt.
“If it is the case, it is a cause for concern. Every ratepayer needs to be worried. Heads must roll.
“Durban was one of the most financially sound cities in Africa, and to now be reduced to this is poor management and lack of accountability. Nobody gives a damn. There is a leadership vacuum in Durban.”
Daily News