The Mpumalanga Department of Co-operative Governance, Human Settlements and Traditional Affairs (Coghsta) claims to have only learned about a multi-million rand warrant of execution against it from the media. This is according to Adv MB Speelman, who represented the department in its urgent rescission application in the Mpumalanga Division of the High Court on Tuesday, June 23.

XJR Construction CC secured a High Court order to attach R470m worth of the department’s assets. The company was reportedly appointed by Coghsta to construct Reconstruction and Development Programme (RDP) housing in 2014. Over the course of more than a decade, it had built thousands of houses across Mpumalanga, but was reportedly underpaid for each one.

ALSO READ: Mpumalanga High Court names interim curator for DD Mabuza estate

According to XJR, the company was paid R103 000 per house instead of the proclaimed national subsidy calculations of R164 000. Upon discovering this, the company approached the court and, in April, secured an order to attach the department’s assets to recover the losses.

Speelman asked the court for a postponement, arguing that the department only became aware of the execution order in the media and requested time to file papers. Acting Judge Kgama Shai postponed the matter to Thursday, July 2, by which time the department is expected to have filed the papers necessary for the matter to be heard on urgent basis.

National Minister of Human Settlements Thembi Simelane and Mpumalanga Coghsta MEC Speed Mashilo were cited as applicants seeking to overturn the warrant of execution.

Paul Mathebela, a director at XJR, said the department must do the right thing and pay the money instead of challenging the warrant of execution. “The department is fully aware about what is going on. It is not true that it only became aware of the execution from the media. The department does not want us to attach its assets. We also don’t want that – we want to be paid. What are we going to do with tables and desks?” asked Mathebela.