Limpopo municipality slapped with record R500m lawsuit

Cash-strapped Limpopo municipality faces court action for failing to pay R10.9m

The project, dubbed Operation Mabone, had the full support of the then Department of Energy and National Treasury but some time along the way, when Mphaphuli allegedly ignored veiled overtures to bankroll individual ANC politicians and officials in the Sekhukhune region, he fell out of favour and concerted attempts were then made to kick his company out.

The court ruled in Mphaphuli’s favour and he had to attach the municipality’s two investment accounts before he was paid. Former municipal manager, Johannes Mohlala, tried cancelling Mphaphuli’s contract without a council resolution and after failing, he and Phokane asked the SIU – which has a proclamation to investigate the municipality for maladministration – to also set its sights on the company.

“Due to the negative, damaging, unlawful mistruths spread by the first defendant relating to the parties’ professional relationship, the first plaintiff’s business operations and prospects have been hampered,” reads the papers. SIU spokesperson, Kaizer Kganyago, indicated that the corruption-busting unit had not yet received Mphaphuli’s papers.• Fetakgomo Tubatse pay contractual damages in the amount of R72.8 million;• Fetakgomo Tubatse and the SIU pay a combined loss of revenue in the KZN projects amounting to R281.3 million;

This is why tenders should be abolished! A lot of unworthy motherfuckers walking around with a chip on their shoulders when Municipalities can do it themselves.

Killing small businesses is what Municipalities do best... Hai...

✊🏽✊🏽✊🏽✊🏽✊🏽✊🏽i hope this will teach a few administrators a lesson or two.

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