Red Ants wait patiently for debt to be settled
This contract was terminated on April 4 last year
Emalahleni Local Municipality owes Red Ant Security Relocation and Eviction Services a staggering R44 582 233.39.
On January 24, a summons was delivered to the local municipality and the municipality was called on to immediately pay the Red Ants.
This R4-million debt has been accumulating since 2014.
In a council meeting on February 28 the municipality responded to questions raised by the Democratic Alliance regarding the services of the Red Ants.
The council explained that the money is owed because the Red Ants rendered a service for safe-keeping and protecting a hostel in Thushanang Hostel one block two because the community illegally occupied block two.
This contract was terminated on April 4 last year.
An acknowledgement of this debt was recognised and provisions were made to pay the Red Ants R200 000 per day from November 6, 2017 until the amount was paid in full.
They further explained R56 526 713.82 was paid for evictions and land invasion in Empumelelweni, Nooitgedacht (plots 75, 80, 81 and 82), Phola/Ogies and Ga-Nala.
A further R10 780 668.54 was paid for disconnections and reconnections, however, no payments toward the outstanding amount have been made.
Mr Johan Bosch, chief executive officer of the Red Ants said they turned to the court because debts expire after three years if no payments have been made and the creditor has not demanded payment.
“This was just a formal way of demanding payment and assuring that the debt is not written off,” Bosch said.
He said that the local council has been a client of theirs for years and he understands the slap they received from Eskom and the historical debt they inherited from their predecessors.
“The municipality at least pays us. I have the highest regard for the municipal manager, Mr Sizwe Mayisela and his business orientated way of running the municipality. Under his guidance huge strides will be made in rescuing the municipality,” Bosch said.
The Red Ants are still rendering services in the municipality.
By the time going to press there was no response from the municipality.
