EMLM assets to go on auction to pay debt
THE Grahamstown High Court has instructed the Komani sheriff to auction Enoch Mgijima Local Municipality’s (EMLM) assets worth R21-million on July 1 to pay off a six-year-old debt to Milowo Trading Enterprise.
The debt is owed for the construction of a community hall built in 2012 in Sterkstroom by Milowo Trading Enterprise which has accumulated interest over the years and currently stands at R58-million.
The attorney representing Milowo Trading Enterprise, Lionel Trichardt of Lionel Trichardt and Associates, said the local authority failed to honour a settlement agreement on numerous occasions, therefore necessitating drastic measures.
“The bill including interest was R58-million, but my client and EMLM settled on the original R21-million which has also accumulated about R450 000 in interest since the agreement was signed in October last year.”
The municipality assets to be auctioned comprise 44 vehicles which include 18 trucks, 14 bakkies, two TLBs, a roller, a grader and 10 cars. Other assets to be auctioned are a fridge, microwave, water dispenser, seven computers, cabinets and a generator.
Trichardt indicated that both the plaintiff and the defendant had signed a settlement agreement last year which stated EMLM would pay monthly instalments.
“We agreed on R7-million for three consecutive months starting in October, but never received anything. We then decided to take the matter up with the Grahamstown High Court to force the municipality to pay my client,” he said.
Robert Goss of Milowo Trading Enterprise said he was thankful to God that this matter was nearing an end and hoped no further hiccups will deter him from getting his money.
“This whole situation almost made me give up on life. When I built the hall, I had more than R3-million in my bank account and used that money to help build the hall. When I did not got paid, I almost lost my house and was under debt review because I too could not pay my debt. When the municipality approached me to build them the hall, I assisted them out of goodwill and it breaks my heart that they have mistreated me like this.”