Ladysmith GazetteLocal newsMunicipalUpdate

uThukela still facing financial crisis despite court ruling

The DA says uThukela still faces serious financial challenges despite the High Court ordering its bank accounts to be re-opened.

High Court orders municipal accounts to re-open

The Pietermaritzburg High Court has ordered that the suspended bank accounts of uThukela District Municipality be re-opened and that the funds be returned within 48 hours.

This ruling comes after the accounts were previously frozen, creating operational challenges for the municipality.

DA calls ruling a ‘temporary victory’

The Democratic Alliance (DA) in uThukela says the court ruling should not be seen as a final solution.

According to DA uThukela chairperson Councillor Thys Janse van Rensburg, the decision is only a temporary victory, as the municipality still faces significant financial obligations.

R137-million debt still unresolved

Van Rensburg said the municipality still owes R137 million to RASP Consultants.

The DA claims the debt is linked to an agreement allegedly entered into in October 2025, without the approval of the municipal council.

Interest continues to increase

The party also warned that interest on the debt has already reached R31 million and continues to grow.

According to the DA, this increasing amount places additional pressure on taxpayers and the municipality’s already-strained finances.

Possible further legal action

Van Rensburg said RASP Consultants could still appeal the High Court ruling or pursue further legal action to recover the money owed.

Concerns over national government visit

The DA also criticised the recent visit by Co-operative Governance & Traditional Affairs Minister Velenkosini Hlabisa. They argue that the visit did not adequately address the governance and financial challenges currently facing uThukela District Municipality.

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Shamona Buthuram

Shamona Buthuram, a journalist at the Ladysmith Gazette, is a multifaceted talent with a passion for fashion and make up. As a former Miss Bollywood winner and qualified makeup artist, she brings a unique perspective to her writing. When not working, Shamona loves dancing, watching Friends and Bollywood movies, and binge-watching Netflix. Her motto, "Love all, serve all.

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