KZN municipality sues ‘rogue’ debt collector

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KDM said the payments had not been disclosed, reported on or reconciled by Asmal and Asmal as it was contractually obliged to do.

In an ironic turn of events, KwaDukuza municipality sued its own debt-collecting law firm for failing to hand over R2 million collected from a defaulting ratepayer.

According to the affidavit, KDM instructed its attorneys in June 2018 to recover arrears rates from a particular client, by legal proceeding if necessary.The papers stated that from time to time, the attorneys would report on the ongoing process of recovery. KDM said that despite numerous attempts to contact the principal attorney, Mr Asmal, no response was received.

Source: Loan Digest (loandigest.net)

 

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