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A scandal-ridden Limpopo municipality is facing yet another embarrassment to have its properties attached – for failing to pay R1.1 million in legal costs incurred by an electrical engineering company.
The Fetakgomo Greater Tubatse municipality in Burgersfort had until March 23 to pay Mphaphuli Consulting’s bill incurred in a protracted Polokwane High Court and Bloemfontein Supreme Court of Appeal case where it has been trying to avoid paying an amount of R41.2 million due to the company.
Last December, Mphaphuli Consulting attached the municipality’s vehicles and an investment account to recover the R41.2 million debt for its work on a R231-million pilot electrification project – Operation Mabone – which aims to light up 13 500 households in 24 villages.
The Fetakgomo Greater Tubatse municipal manager, Johannes Mohlala, has been dragging his feet to pay the company – allegedly because he took instructions from ANC bigwigs in the Sekhukhune region who wanted Mphaphuli’s contract terminated.
Mohlala and Mphaphuli Consulting’s chief executive, Lufuno Mphaphuli, agreed to a ceasefire on March 8 just two days after the municipality lost its appeal against the December execution.
Mohlala had failed three times to stop the execution in the Polokwane High Court and has now failed the appeal.
The ceasefire aimed to stop the issuing and serving of a warrant of execution on the municipality before March 23. However, the municipality has still not paid and it is likely to have its properties attached again.
“If they don’t pay, this will lead to the sheriff attaching some of their assets,” Mphaphuli said.
Today, Mphaphuli’s lawyers – Cousin Hertzog and Horak – wrote to the municipality’s lawyers, BDK Attorneys, reminding them of the payment.
“We also confirm that we have expected payment of the four taxed accounts … in the total amount of R1 088 040. That money was due and payable by the March 23, but payment was not forthcoming,” reads the letter.
“Our instruction are to issue a warrant of execution. However, we are very loathe to issue a writ against your client without prior warning.”
Fetakgomo Greater Tubatse spokesperson, Kubane Tolo, said: “The legal team of the municipality has been engaging Mphaphuli’s legal team. Right now, we cannot disclose contents of such engagement.
"The municipality hereby confirms that we will abide by the court order – which is to pay.”
Mphaphuli has, meanwhile, proposed that an adjudicator be appointed to resolve the stand-off his company has been having with the municipality.
The adjudicator or two adjudicators – who should have knowledge of electrical engineering and accounting – will verify the work Mphaphuli Consulting has done and how much the company has claimed and should have been paid.
The adjudicator should also consider cost escalation on unpaid invoices. Mphaphuli wants the adjudicator to finish its work by the end of May after switching on of all the villages that had been completed.
Meanwhile, residents have been mounting pressure on Mohlala to be fired for alleged maladministration, corruption and victimisation of employees.
“It is alleged that [Mohlala] received names of companies from ANC leaders, which Mphaphuli Consulting should hire as sub-contractors.
"After [Mphaphuli] refused because they had no capacity and/or resources, Mohlala was instructed to frustrate the service provider so that he would abandon the project,” said Dumisa Madalane, a spokesperson of concerned groupings.
Tolo said the council was satisfied with Mohlala’s work.
“The council is very happy and satisfied with the performance of the municipal manager in discharging his mandate and responsibilities,” Yolo said.
A litany of problems
Mohlala has built a record of mishandling contracts and exposing the municipality to litigation.
These include failure to pay a company that was contracted to compile annual financial statements. Mohlala averted the attachment of municipal properties by Munsoft after paying R3 million.
Last year, the municipality lost a high court case after it appointed two companies for one R14 million job of designing and installing 40 high-mast lights.
Mohlala’s predecessor, Adelaide Monyepao, had appointed Bawelile Consulting Engineers in January 2014 for the job.
However, Mohlala awarded the same contract to Volt Consulting Engineers 11 months later.
Bawelile successfully applied for an interdict to stop the municipality from continuing with implementing the project and making payments to Volt Engineering.
The tender has to be reviewed and awarded again.
Mohlala did not put the high-mast tender awarded to Volt Engineering through an open bidding process – as required by the Municipal Finance Management Act for every tender valued at more than R200 000.
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