The High Court has ruled in favour of three local contractors in a case against Govan Mbeki Municipality.
The meter reading contractors took the municipality to court after they received a letter from Council that their contract had been suspended.
The letter from the municipal manager, Mr Ernest Michele, stated that the suspension was due to allegations received by his office and the national treasury investigation and action regarding the allocation of the tender.
Mr Michele stated that due to this, he had decided to act in terms of Section38 of the Local Government: Municipal Finance Management Act 56 of 2003 regulations on municipal supply chain management, to institute an investigation into the veracity of the allegations with appropriate steps to be taken.
He suspended the implementation of the service level agreement entered into between the contractors and the municipality in March, pending the outcome of the investigation.
Mr Sipho Mabuza spoke on behalf of the contractors, Bhambatha Anatech Engineering, Gull Air Projects CC and Refine Sol (Pty) Ltd and Best Enough Trading Projects JV Zimbrey Trading Enterprise CC, and said they are pleased that justice had been served and that the court ruled in their favour.
“We are returning to our work as the court had ruled, though we are not happy with the way the municipality had treated us.
“It was obvious that the actions of the municipality were politically influenced, but that does not matter anymore as we had won the case.”
Mr Bheki Kubheka, acting head of Communication and Marketing of the municipality, said the court ruled in favour of the applicant that the suspension be uplifted pending the report from National Treasury.
“Each party will cover its legal costs and the contractors will be paid for work done only.
“As soon as internal processes have been finalised, the contractors will begin with the work.”
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