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Naledi municipality owes Eskom R390-million
Due to poor debt collection and tariff payment defaults
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NORTH WEST PAYMASTER

Why this case?

Sakeliga is undertaking a so-called paymaster court case in the North-West so that end users’ fees for critical service delivery can be paid into a separate and ring-fenced municipal bank account. This is an important step in stopping decay and reducing opportunities for corruption at municipal level.

Eskom, water boards and other important service providers must be paid on time, as opposed to end-user collections disappearing into a bottomless pit of corruption.

In this case, Sakeliga therefore asks the court that pending the proper implementation of a financial recovery plan under a mandatory intervention by the National Treasury, an independent auditing firm be appointed as so-called “special master” with regard to the dilapidated respondent municipalities’ finances. The special master’s duties would involve managing the separate municipal bank account, receiving all collections and levies for critical services such as water, electricity and upgrading critical infrastructure therein, and paying providers directly from that account.

Case details

Status: Active

Case commenced: 9 April 2021

Court: High Court: Mahikeng

Next court date: 
Unknown at this stage.

FOLLOW THIS CASE

14 December 2021​Sakeliga writes a letter asking the Judge President of the High Court in Mahikeng for case management as the respondents do not cooperate and disregard the court rules.
9 December 2021The court rules with costs in Sakeliga’s favor in its interlocutory application of 19 November. The respondents are required to deliver outstanding records.
​23 November 2021Naledi Local Municipality institutes an interlocutory application with the view to having Eskom’s explanatory affidavit striked out. Their objection to Eskom’s statement is based on an argument that Eskom as respondent offers support to Sakeliga as applicant.
19 November 2021Sakeliga institutes an interlocutory application (an application within an application) against the first to third and seventh respondents, to compel these respondents to provide their records to which they refer in responding affidavits as required by the court rules.
2 November 2021​The respondents, with the exception of respondents 1 to 3, only partially complied with Sakeliga’s record requests on 2 November 2021. Sakeliga is only now able to prepare replying affidavits and take the matter further. Respondents 1 to 3 are at this stage yet to provide their records to which they refer in their answering affidavits.
​​​9 September 2021
​6th Respondent files answering affidavit.
8 September 2021​Eskom files an explanatory affidavit in the matter, and supports the relief sought by Sakeliga.
26 August 2021Since the 1st to 3rd & 7th respondents, as well as the 4th respondent, did not annex all the documents to which they consistently referred in their affidavits, Sakeliga filed notices under rule 35(12) of the court rules to request the outstanding records.
25 August 20211st to 4th & 7th respondents file answering affidavits.
26 May 2021 Sakeliga serves notice of motion and founding affidavit on the respondents.


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