Supplier demands unpaid R1,56m from Govan Mbeki Municipality
Sizabantu Piping Systems says the outstanding amount is now accruing interest at 2% per month.
A supplier contracted through a cession agreement with the Govan Mbeki Municipality says it is still waiting for payment for materials supplied to the Eendracht Sewer Project in 2022.
Debt has apparently escalated to more than R1.5m, including interest. According to Sizabantu Piping Systems, the company supplied pipes and fittings for the Eendracht Sewer Project after being approached by contractor IK Mnguni following the municipality’s appointment of the contractor.
The supplier said a formal cession agreement was signed in January 2022, between the contractor, the municipality and Sizabantu Piping Systems.
Under the agreement, the contractor ceded its right to payment from the municipality directly to the supplier to secure payment for materials delivered to the project.
Sizabantu stated that once the cession agreement was signed, deliveries of materials commenced, and all delivery notes, invoices and statements were submitted to the municipality.
Neels Louw from the company confirmed that initial payments were received from the municipality between March and June 2022.
However, payments allegedly stopped thereafter, forcing the company to seek legal assistance before receiving two further payments in April and July 2023.
“Since July 2023, no additional payments have reportedly been made, leaving an outstanding balance of R778 357.64 excluding interest.
“The matter resurfaced in September 2025 when consulting engineers involved in the project allegedly informed us that the municipality had instructed them to facilitate payment of the outstanding amount through a current phase of the project.
“In correspondence we have seen, the engineers reportedly requested updated invoices, delivery notes, statements and a copy of the cession agreement so the amount could be included in Payment Certificate No. 2 for direct payment by the municipality,” said Louw.
Louw said that, as the supplier, they subsequently engaged officials in the municipality’s legal department and submitted all requested documentation, including a newly signed cession agreement in November 2025, and the municipal officials undertook that payment would be processed before the end of December 2025.
Louw claims no communication from municipal officials later ceased despite repeated follow-ups through emails, telephone calls and in-person visits.
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“A formal letter of demand was later sent to municipal officials in January this year and was also delivered by the sheriff of the court to the office of the municipal manager. Several promises of feedback and meetings between April and May this year failed to materialise.
“The municipal project manager confirmed in April that the amount owed was not in dispute and should be finalised,” said Louw.
Sizabantu Piping Systems says the outstanding amount is now accruing interest at 2% per month and has escalated from the original R778 357.64 to approximately R1.56m.
The company has accused the municipality of ignoring legal communication and delaying payment for materials supplied nearly four years ago.
The municipality has since terminated the contract with IK Mnguni due to poor work performance.
Donald Green, the municipality’s media liaison and content developer, said the municipality wishes to clarify that the matter is a contractual matter governed by an employer-contractor relationship.
Green said the municipality cannot discuss or debate the specific details of the matter through the media.
“This issue is strictly between the parties involved. In the interest of maintaining professional integrity and legal compliance, the municipality declines to comment further, as it is deemed a private matter,” said Green.
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