City of Ekurhuleni denies wrongdoing in lawsuit case by business
"The city always strives to implement court orders.”
The City of Ekurhuleni (CoE) denies any wrongdoing in the case of Mike Powell, owner of Kumhold Wholesale Foods and Commodities CC.
Following Powell’s call for a class-action lawsuit against the CoE, the city stated that, in this specific case, it has never intentionally disregarded or failed to comply with any court orders.
“The city always strives to implement court orders,” said city spokesperson Zweli Dlamini.
ALSO READ: Business brings lawsuit against city over years of inaccurate billing
Years of disputes with the city forced Powell to close his Rietfontein-based business.
The closure was attributed to inaccurate municipal billing, which led to ongoing disagreements over account settlements.
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,” Powell said.
“I took them to court, and the judge ruled that they could not disconnect the electricity until the matter was resolved. Later, they 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.
“The business eventually closed after they disconnected us, resulting in stock losses and business closure,” he added.
ALSO READ: Driehoek residents speak out on poor state of their environment
Following these remarks, GCN sent a request for comment to the CoE, specifically focusing on the court proceedings.
The email included all documents Powell provided as evidence of his court victories.
When asked if there had been delays or failures to comply with the court orders against the city, Dlamini stated that CoE ensures supply is reinstated immediately, unless it is a level three disconnection resulting from an illegal reconnection by the customer.
Powell disputed allegations of illegally reconnecting power.
“Upon receipt of a court order, the Legal Department forwards it to the Finance Department to reconnect electricity, and the Finance Department ensures immediate reconnection,” explained Dlamini.
ALSO READ: City addresses controversy over issuing and processing of traffic fines
“When receiving court orders, the service of the order is prescribed by law, and the Sheriff knows where to serve it.
“The court order is immediately forwarded to the senior manager, who is legally qualified and advises the relevant department on the legal implications,” said Dlamini.
When asked about the potential consequences of the city’s failure to comply with court orders, Dlamini stated that willful disregard of a court order would result in the city being held in contempt of court.
“Such failure could also lead to the city’s assets being attached and removed, with the possibility of them being auctioned to settle monetary claims,” he said.
Litigation history between Powell and the City of Ekurhuleni
First Court Order (Case No. 47197/2013)
The parties agreed to negotiate a settlement.
Powell and others were responsible for legal costs.
The city undertook not to disconnect power pending settlement negotiations, which were to conclude by January 13, 2014.
ALSO READ: City of Ekurhuleni assures residents of continuous power supply
The attempt to settle was unsuccessful.
Second Court Order (Case No. 35355/2014)
The city was ordered to reconnect electricity after implementing credit control measures against Powell and others due to non-payment of municipal services.
In line with the Credit Control and Debt Collection Policy, consumers must continue paying for undisputed services while disputes are being resolved.
Powell did not adhere to the required payment structure, instead making sporadic payments, leading to further credit control measures.
The city was ordered to cover legal costs.
The city filed a legal claim against Powell and others for outstanding payments (Case No. 23006/2014).
Powell and others counterclaimed, and the matter remains pending.
Powell and his legal team frequently changed attorneys, impacting the case’s finalisation.
Third Court Order (Case No. 026900/2022)
The city was ordered to immediately reconnect electricity.
Powell’s application for reconnection was based on the 2014 court order.
The city was unaware of this case until the court order was served.
ALSO READ: City holds public hearings following Auditor General’s report in Germiston
Fourth Court Order (Case No. 47215/2021)
Powell filed legal proceedings claiming damages due to power disconnections.
He obtained a default judgment against the city and issued a writ of execution.
The city became aware of the case only when the Sheriff attempted to execute the order.
The city applied for a rescission of judgment, which was granted in its favour.
This matter is still pending.
Dlamini added that some cases remain unresolved.
