ORT assets to go under the hammer

Water department sues council for R73m debt

OR TAMBO District Municipality may soon find itself with no vehicles, plant machines, computers or furniture if an auction of these movable assets goes ahead next week.

The district’s assets – worth more than R70-million – are set to go under the hammer on February 10, a move which, if it were to go ahead, would render the municipality non-operational.

This is after the municipality failed to settle a R73-million water debt owed to the national Water and Sanitation Department.

The department resorted to court last year to force the rural district authority to pay and earlier this month, Minister Nomvula Mokonyane’s department was granted an order by the Mthatha High Court to attach assets.

Mthatha High Court Judge Justice Mjali ruled on October 25 that the municipality should pay the R73 440 465.44 – plus 9% interest.

The office of the Sheriff of the High Court in Mthatha is set to oversee the sale of the assets, and should all the cars and equipment be confiscated and sold, service delivery could stop as workers will have no tools of trade.

Mokonyane sued the district authority after it failed to pay the R73.4-million for water used between 2011 and August 2016.

Last November it was reported that the department’s attorneys, AA Solwandle Attorneys, had issued an instruction to the sheriff to confiscate all O R Tambo’s movable assets.

At the time, the Daily Dispatch understands, the sheriff only managed to confiscate one municipal vehicle, though it and attached others.

To try and prevent the embarrassment, the municipality asked President Jacob Zuma, Eastern Cape premier Phumulo Masualle and Finance Minister Pravin Gordhan to intervene, mayor Nomakhosazana Meth’s spokesman Ayongezwa Lungiswa said at the time.

Although he acknowledged the council owed the department, at the time Lungiswa said the amount was being disputed as there was no documentary evidence.

The spokesman yesterday said the municipality was not aware of the pending auction next week, as he had thought that their debt to the Water and Sanitation Department “still requires some clarification and intergovernmental engagement”.

Lungiswa said the municipality was of the opinion that the pending auction had been halted as the council had filed papers to the high court for the rescission of the judgment that had paved the way for their assets to be attached.

“As the municipality we were not aware of the [auction notice] until you brought it to our attention. The understanding of the municipality is that during December, O R Tambo District filed in the high court the rescission of judgment and we are expecting the response from the department by February 5.” —