City property attached
Sheriff of the court attaches assets of the city of Tshwane.
The sheriff of the court attached furniture from the Tshwane metro‘s offices on Tuesday, apparently for failure to pay debt of more than R400 000.
The metro was given notice to clear the debt within two weeks in order to avoid its possessions being auctioned off, said a source who spoke on the condition of anonymity to Rekord.
“The debt has been accumulated the past few years and the metro was given notice of this action,” he said.
Computers, desks and fax machines were among the furniture attached from the legal department of the council in Andries Street.
“These items do not all add up to the amount owed, but will add to the sum owed,” said the source.
Tshwane metro spokesperson Blessing Manale said debt relating to the assets attached amounted to R316 000.
He said more than R200 000 of the money owed comprised fees due to a former attorney of metro. The fees had been queried and were being contested.
“In that regard, a formal complaint with the law society is being considered and an application to resist the said attorney’s claim is being processed with the courts.”
Manale said this did not mean the city could not pay its debts, adding several recoveries were currently underway to collect such legal costs in favour of the metro.
“As part of a contested litigation, the city will be informed by its attorneys of the outcome of the process only after said contestation of the legal costs is finalised.”
Manala sought to assure residents that the metro was financially sound, saying: “The city is not going bankrupt.”
Shadow finance MMC Lex Middelberg, said the Democratice Alliance (DA) requested a complete list of all outstanding court matters and judgments in the past, but the officials were yet to reply.
He was not aware of Tuesday’s attachment.
“The last financial statements submitted to council reported that all creditors have been paid up and no debts were outstanding,” he said.
He said the attachment of assets for old debts raised questions about the accuracy and integrity of financial reporting.
Under the Municipal Finance Management Act the city had to pay all creditors within 30 days from the debt becoming due, Middelberg said.
“In the case of judgement, debt such as this was obviously not paid within 30 days. What makes matters more serious is that the debt has not even been paid after a court of law ordered payment.”
He said this indicated either bad management or a metro in financial distress.
“The city’s financials have over the past year shown an increasingly alarming picture of a city in financial distress.”
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