MunicipalNews

Financial mismanagement: eThekwini Municipality to pay R30m in legal fees

Ratepayers' associations are demanding that eThekwini Municipality take responsibility for its financial management.

FOLLOWING the dismissal of the eThekwini Municipality’s appeal application at the Supreme Court of Appeal, ratepayers associations expressed disappointment over the city’s financial administration.

The municipality may be forced to fork out R30 million from taxpayers’ money to cover the legal costs of the companies whose contracts were allegedly cancelled unlawfully last year.

Also read: eThekwini Municipality brings relief to Clairwood community

The municipality will have to pay this sum to Daily Double Trading 479 CC, trading as Pholobas Projects, following the dismissal of its special leave to appeal application.

Chairperson of the Bluff Ratepayers and Residents Association, Norman Gilbert, said the municipality has incurred fruitless expenditure.

“It is deeply disappointing and frustrating to witness yet another instance of reckless financial mismanagement by eThekwini Municipality, adding approximately R50 million to its already astronomical fruitless and wasteful expenditure,” said Gilbert.

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He said the latest court ruling, which compels the municipality to pay R30 million (plus interest and legal costs) to Daily Double Trading 479 CC due to the unlawful cancellation of contracts, is yet another example of how poor decision-making and a lack of accountability are burdening ratepayers.

“The municipality’s repeated attempts to evade its legal obligation despite clear rulings against it have only served to escalate costs, ultimately at the expense of residents who expect responsible governance.

“This case is not just about a financial loss; it is about the continuous erosion of public trust. Ratepayers should not be forced to foot the bill for administrative incompetence and poor legal strategy. Instead of focusing on service delivery and infrastructure maintenance, millions are squandered on legal battles that should never have been necessary in the first place,” he said.

Gilbert emphasised the association’s stance in calling for immediate accountability from municipal leadership.

“We demand transparency in decision-making processes, responsible financial management, and consequences for those responsible for these costly errors. Ratepayers deserve better,” Gilbert added.

Attempts to get further comments from eThekwini Municipality were unsuccessful at the time of publication.

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Andile Sithole

He has been covering a variety of news beats for over 10 years. As a journalist working for community newspapers, he has covered politics, court reporting, municipal stories, crime, and news features over the years. Andile is also a multimedia journalist for Southlands Sun. He started his career in journalism as a freelance reporter in 2005 while studying Communication Science at UNISA. Prior to joining Caxton Newspapers, he worked for both community and commercial newspapers in Durban, where he won the Journalist of the Year Award in 2020 and 2021.

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