Business brings lawsuit against city over years of inaccurate billing
“From 2022 there were continual power cuts, we had to close the factory losing about 20 staff members in August 2023,"
In a class action lawsuit against the City of Ekurhuleni (CoE), Mike Powell of Kumhold Wholesale Foods and Commodities CC calls on other entrepreneurs to join him.
Years of disputes with the city forced him to close his Rietfontein-based business.
Powell, who launched his wholesale food company in the area in the early 1990s, says inaccurate billing from the municipality led to ongoing disagreements over account settlements.
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According to Powell, the city never addressed the disputes and continuously added interest to the contested amounts over the years.
“We continued to pay what we believed we were using, but in 2013, they disconnected our power.
“I took them to court, and the judge ruled they could not disconnect the electricity until the matter was resolved,” he said.
“They later claimed the court order had lapsed and disconnected us again.
“I took them back to court, and once again, the ruling was in our favour. However, despite multiple court victories, nothing was resolved.
“Between 2022 and 2023, we lost nearly R1m worth of merchandise because of another disconnection.
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“We took them to court, and they did not even dispute our claims, leading to another ruling in our favour. To this day, they have not compensated us for the damages,” said Powell.
“From 2022 onwards, power cuts became a regular occurrence, and by August 2023, we had no choice but to close the factory, resulting in the loss of about 20 jobs.
The area is extremely unsafe, and I had to hire security to protect our equipment.
“In 2022, the CoE installed a new digital electricity meter without notice and removed the old one without taking readings, which created further complications.
“I am calling on others with similar experiences to join me in a class action lawsuit against the city.
“Germiston is supposed to be a manufacturing hub, but it is alarming to see many companies leaving the area.
“I have been in the area since the 1990s.
“Even at my residence, they claim I owe R21m in water bills and insist I pay first before they ‘sort it out,’ but never resolve anything.
“Each time I take them to court, it costs me nearly R50 000. The Rietfontein building has no value without power, and the city earns nothing.
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“The issue is they are still trying to claim money from over ten years ago. Businesses cannot continue to suffer without consequences.
“Even after we closed, water, waste, and power bills keep piling up. They are now charging me R11 550.38 in monthly interest on arrears—this is absurd,” said Powell.
To contact Powell, email mike@wfac.co.za or call 083 250 4577.
The CoE was contacted for comment but has yet to respond.
The GCN sent a request for comment on January 30, asking for a response by the afternoon of January 31.
At the time of publication, we received no comment.
