eThekwini ordered to pay R30m to ex-service provider
eThekwini Municipality is counting the cost of a 13-year legal battle with a former service provider.
The Constitutional Court has ordered the metro to pay R30 million in compensation to the company.
The apex court found the contract was unfairly terminated in 2013.
eThekwini has acknowledged the court ruling but says it can't comment on the legal fees as the matter dates back over a decade and the full costs are not immediately available.
At the same time, the city insists the fees are in line with standard tariffs for legal matters.
“Once such matters are finalised, we must respect the court’s decision and focus on lessons learnt. As I have indicated, these matters occurred before my time, but I am committed to addressing them. I want to assure eThekwini residents that we are working diligently not only to improve service delivery, but also governance issues,” mayor Cyril Xaba said.
READ: eThekwini ‘prioritising’ fixing Verulam water supply
Meanwhile, KZN Cooperative Governance MEC, Thulasizwe Buthelezi, has written to the eThekwini mayor, asking for a full breakdown of the legal costs.
He is also calling for accountability.
The municipality says internal processes will take place to deal with officials who failed to follow proper procedures.
“This is an effective way of rooting out collusive corruption and other malfeasances,” Xaba said.
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