EThekwini fights to recover seized assets
THE eThekwini Municipality has launched legal action in an effort to recover its assets that were seized by a private company to satisfy a R30 million debt owed by the city in terms of a court judgment.
In terms of the judgment handed down by the Durban High Court, the city was ordered to pay the company, identified as Daily Double Trading 479 cc, trading as Pholobas Projects, R30m and interest. When the payment did not take place and leave to appeal was refused by the high court, the company moved to seize the city’s assets.
The city said yesterday that court papers had been prepared and signed by the municipal manager, Bongumusa Mbhele, to call for the unconditional release of its assets. This after the company refused to release the assets without conditions.
EThekwini mayor Mxolisi Kaunda said while he would not speak in detail on the issue as it was before the court, the priority was to get the municipal assets back. A report tabled before the executive committee yesterday shows that the assets that had been seized are valued at R3 049 400. The items include 16 vehicles, 16 computer screens, a printer and telephones.
The report revealed that the city has petitioned for leave to appeal the high court judgment in the Supreme Court of Appeal and has launched a court challenge for its assets to be returned.
It said that on August 30, the leave to appeal papers were filed and served on Daily Double’s legal representatives.
“Immediately after serving the petition papers, the municipality demanded the full return of the attached and removed assets. Daily Double’s legal representatives undertook to take instruction and revert back to the municipality’s lawyers by August 31.
“When there was no response by close of business (on that date), the municipality’s lawyers on September 1 gave the legal representatives of Daily Double until 3pm that day to respond, failing which the municipality will approach the court on an urgent basis for appropriate relief,” said the report.
It said on September 1, the representative of the company responded with conditions preceding the release and return of the municipal seized assets.
The conditions included that the municipality must lodge in the sheriff’s trust account an amount of cash equivalent to the value of the seized assets and that the city pay the Sheriff’s cost for the attachment, removal, storage and return.
In response, the municipality demanded the assets be returned without conditions but this was refused.
“Counsel was instructed to prepare application papers to apply for the unconditional release of the municipal seized assets because there was no justification for payment to be made in relation to a judgment which is subject to an appeal.”
Councillors said while they welcomed the report, they still wanted accountability.
IFP councillor Mdu Nkosi said it was important to establish who had made the mistake that led to the court matter and challenges. “We cannot let the matter be swept under the rug. If there is a person who failed to do their job, that person must face the music.”
DA councillor Thabani Mthethwa said the report did provide clarity. “We can only hope they (city officials) will be able to retrieve the assets that were taken by the Sheriff because based on the list of items taken it’s clear that our service delivery is impacted.”