The Democratic Alliance (DA) in Msukaligwa Municipality, Mpumalanga, has approached the Special Investigating Unit to investigate a land matter involving a municipal reservoir that was built and later sold to a prominent businessman.
The municipality and the businessman are currently in court over a R247 million debt the municipality allegedly owes in reservoir rental. It is alleged the municipality entered into an agreement to pay R800 000 per month but later defaulted on the lease agreement. The businessman has since approached the court to seek an execution order to attach the municipality’s assets.
DA councillor Johannes Scholtz says the potential attachment of the municipality’s server posed a serious threat to its operations.
“One of the most important things that is going to be attached in this legal dispute is our server. If the server is taken — it is valued at more than R50 million — it poses a threat that the municipality of Msukaligwa can collapse in totality, and that’s one of our major concerns. That is why the DA is advocating and why we asked the SIU nationally to investigate this — whether the municipality was at fault or the businessman was at fault — but the taxpayers need answers,” Scholtz says.
Municipal Mayor Precious Nkosi confirmed awareness of the court application but said the matter was sub judice.
“On the 4th of June, the council took a resolution about that matter. For now I can’t say much about the matter because the matter is sub judice — it’s in court. But the municipality is determined to protect the property and assets of the municipality. When the matter is finalised in court, I would then be able to come and talk to you about the matter,” Nkosi said.
Msukaligwa Municipality could face charges for contravening National Water Act
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