MM SPEAKS ON ASSETS AUCTION
ATTORNEYS representing Milowo Trading Enterprise, Lionel Trichardt and Associates, have instructed the Komani sheriff to attach more moveable assets of the Enoch Mgijima Local Municipality (EMLM) after the Grahamstown High Court ruled in the firm’s favour on Tuesday.
The court rejected the local authority’s application to rescind a judgment requiring it to pay Milowo R21-million for a hall built in Sterkstroom in 2012.
This follows the recent auction of municipal assets to recover funds from the cash-strapped municipality which saw the sale of 44 municipal vehicles.
In a court judgment document seen by The Rep, Judge Nondumiso Jaji described the municipality’s approach as “dilatory and delaying tactics”.
“The municipality has massive resources, could afford the best legal minds and if it wanted to defend the matter, at least it could have provided a better defence. The applicant [municipality] is being vindictive and has defended the matter to annoy or to force the respondent [Milowo] to incur unnecessary costs which it would normally not have. The punitive costs order would be justifiable in this circumstance,” reads the document.
The civil engineering company’s attorney Lionel Trichardt said the judge ordered the municipality to pay for costs amounting to about R200 000.
“My client and I will continue to pursue the writ of execution granted and as a result we have instructed the sheriff to attach the municipality’s immovable assets including buildings. The money recovered from the first auction fell short of the R21-million my client is owed, assets worth R15-million or so still need to be auctioned. The sheriff will decide the date of the next auction after all processes have been completed.”
Milowo owner Robert Goss said he had tried to negotiate with the municipality through his attorney on numerous occasions and it was sad that everything was turning out this way.
“I am grateful to God that this is finally coming to an end. It’s been an emotionally and financially draining journey. This could have been avoided had the municipality adhered to our agreement last year. It is sad that communities will suffer because of other people’s mistakes.”
Twizza CEO Ken Clark indicated he and other business people had pleaded with EMLM municipal manager (MM) Chris Magwangqana the day before the auction to accept the terms tabled by Goss’s attorney but Magwangqana had refused.
“The attempt to revert a court judgment three days before the auction was frivolous. The MM had the power to stop the sale, but he did nothing. A time for change has come, the strategy currently being used to save this municipality is clearly not working. People need to take responsibility for their actions and if there is corruption in this whole situation the guilty must be brought to book and charged.”
United Front councillor Aaron Mhlontlo said the people leading the municipality were “air-headed crooks who are full of themselves to such an extent they do not take good advice from people outside the ANC.”
“The municipality is on its knees. We need decisive, level-headed leadership which we do not have. The MM could have consulted council but he did not and has to bear the brunt alone.”
Attempts to reach the MM or get comment from EMLM spokesman Fundile Feketshane were unsuccessful.