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Naledi municipality owes Eskom R390-millionDue to poor debt collection and tariff payment defaults
NORTH WEST PAYMASTER
Why this case?
Eskom, water boards and other important service providers are not getting paid by the Ditsobotla and Naledi municipalities in North West – notwithstanding the fact that end users of services pay for services every month. Municipal collections from end users repeatedly disappear into a bottomless pit of corruption and escalating wage bills.
In this matter, therefore, Sakeliga is requesting the court that, pending the proper implementation of a financial recovery plan in terms of an intervention by the National Treasury, an independent auditing firm be appointed as so-called “special master” in respect of the key financial matters of the decayed respondent municipalities. The duties of the special master would be to manage a ring-fenced municipal bank account, to receive into this account all collections and levies for critical services such as water, electricity and upgrading of critical infrastructure, and to pay suppliers drectly from such account.
This is unique and innovative legal strategy that could create a favourable precedent for other municipalities.
Case details
Status: Active
Case commenced: 9 April 2021
Court: High Court: Mahikeng
Next court date: Unknown at this stage.
FOLLOW THIS CASE
The case is heard in the High Court in Mahikeng. Due to an affidavit filed a day before the hearing by the Minister of Finance (almost two years late), and the court’s prioritization of other cases, the case is postponed.
The interlocutary application in the case (refer to 23 November 2021 on the timeline) is heard. The judge rules that Eskom’s explanatory affidavit will be permitted during the main hearing in March, 2023.
A case management meeting will take place on 7 September 2022 before the Judge-President of the court. The Judge-President is considering the court papers and a special allocation date.
Naledi Local Municipality’s legal team indicates that, after a discussion with Eskom, they do not intend to proceed with their interlocutory application (on the court roll for 17 November 2022) for the scrapping of Eskom’s supporting affidavit. Sakeliga objects to the manner in which Naledi approaches the issue, as Naledi is supposed to file a formal notice of withdrawal in terms of the court rules, and also tender the wasted costs occasioned by their application. It seems that Naledi wants to reserve the right to raise the interlocutory issue during the main application, which step would lead to a postponement of the case.
Sakeliga’s legal team again applies to the Judge President of the court for a special allocation of the case, in light of the request that was already submitted on 14 December 2021. Naledi Local Municipality’s interlocutory court application in the case (refer to 23 November 2021 on the timeline) is also allocated on the roll for 17 November 2022.
In response to the Minister of Finance’s invitation to "engage in conversation" about Sakeliga’s municipal litigation, Sakeliga writes to the Minister of Finance’s office and indicates willingness to engage in conversation.
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.
The court rules with costs in Sakeliga’s favor in its interlocutory application of 19 November. The respondents are required to deliver outstanding records.
Naledi 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.
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.
Eskom files an explanatory affidavit in the matter, and supports the relief sought by Sakeliga.
26 August 2021
25 August 2021
Sakeliga serves notice of motion and founding affidavit on the respondents.
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Sakeliga: Government delays in special paymaster case necessitate judicial case management
| 23 Maart 2023 | Die saak is word aangehoor in die Hooggeregshof in Mahikeng. Weens 'n eedsverklaring wat 'n dag voor die verhoor deur die Minister van Finansies geliasseer is (bykans twee jaar buite tyd), en die hof se prioritisering van ander sake, word die saak uitgestel. |
|---|---|
| 17 November 2022 | Die tussentydse hofaansoek in die saak (verwys na 23 November 2021 op die tydlyn) word aangehoor. Die regter beslis dat Eskom se verduidelikende verklaring toegelaat sal word tydens die hoofverhoor in Maart, 2023. |
| 7 September 2022 | 'n Saakbestuurvergadering vind op 7 September 2022 voor die Regter-President van die hof plaas. Die regter oorweeg die stukke en ‘n spesiale allokasiedatum. |
| 16 Augustus 2022 | Naledi Plaaslike Munisipaliteit se regspan dui aan dat hulle, na 'n gesprek met Eskom, nie van voorneme is om voort te gaan met hul tussentydse aansoek (op die hofrol vir 17 November 2022) ter skrapping van Eskom se ondersteunende verklaring nie. Sakeliga maak beswaar teen die wyse waarop Naledi die kwessie benader, aangesien Naledi veronderstel is om 'n formele kennisgewing van onttreking kragtens die hofreëls te liasser, en ook kostes te tender. Dit wil voorkom of Naledi die reg wil voorbehou om tydens die hoofaansoek die hof te beswaar met oppering van die tussentydse aansoek, wat tot 'n uitstel van die saak sal lei. |
| 15 Junie 2022 | Sakeliga se regspan doen weer aansoek vir 'n spesiale allokasie van die saak by die Regterpresident van die hof, n.a.v. die versoek wat reeds op 14 Desember 2021 gerig is. Naledi Plaaslike Munisipaliteit se tussentydse hofaansoek in die saak (verwys na 23 November 2021 op die tydlyn) word op die rol geplaas vir 17 November 2022. |
| 6 Junie 2022 | Op reaksie van die Minister van Finansies se uitnodiging om "in gesprek te tree" oor Sakeliga se munisipale litigasie, rig Sakeliga 'n skrywe aan die Minister van Finansies se kantoor en dui bereidwilligheid aan om in gesprek te tree. |
| 14 Desember 2021 | Sakeliga skryf 'n brief en vra die Regterpresident van die Hooggeregshof in Mahikeng vir saakbestuur, aangesien die respondente nie samewerking bied nie en die hofreëls verontagsaam. |
| 9 Desember 2021 | Die hof beslis met koste in Sakeliga se guns in sy interlokutêre aansoek van 19 November. Die respondente is verplig om uitstaande rekords te lewer. |
| 23 November 2021 | Naledi Plaaslike Munisipaliteit, bring 'n interlokutêre aansoek met die oog daarop om Eskom se verduidelikende eedsverklaring te laat skrap. Hulle beswaar teen Eskom se verklaring berus op 'n argument dat Eskom as respondent steun aan Sakeliga as applikant bied. |
| 19 November 2021 | Sakeliga bring 'n interlokutêre aansoek ('n aansoek binne 'n aansoek) teen die eerste tot derde en sewende respondent, om hierdie respondente te verplig om hul rekords waarna hulle in antwoordende verklarings verwys, te lewer soos die hofreëls vereis. |
| 2 November 2021 | Die respondente, behalwe respondente 1 tot 3, het eers op 2 November 2021 gedeeltelik aan Sakeliga se rekordversoeke voldoen. Sakeliga is nou eers in staat repliserende verklarings voor te berei en die saak verder te voer. Respondente 1 tot 3 is op hierdie stadium steeds in versuim om hul rekords te lewer waarna hulle in hul antwoordende verklarings verwys. |
| 9 September 2021 | 6de respondent lewer antwoordende eedsverklaring (laai dit hier af). |
| 8 September 2021 | Eskom lewer 'n verduidelikende eedsverklaring in die saak, en steun die regshulp wat deur Sakeliga verlang word. |
| 26 Augustus 2021 | Aangesien die 1ste tot 3de & 7de respondente, sowel as die 4de respondent, nie al die dokumente aangeheg het waarna hul deurgaans in hul verklaring verwys nie, het Sakeliga kennisgewings kragtens reël 35(12) van die hofreëls geliasseer om ontbrekende dokumente aan te vra. |
| 25 Augustus 2021 | 1ste tot 4de & 7de respondente lewer antwoordende eedsverklarings (laai dit hier en hier af). |
| 26 Mei 2021 | Sakeliga beteken kennisgewing van mosie en funderende eedsverklaring op die respondente (laai dit hier af). |
| 23 March 2023 | The case is heard in the High Court in Mahikeng. Due to an affidavit filed a day before the hearing by the Minister of Finance (almost two years late), and the court's prioritization of other cases, the case is postponed. |
|---|---|
| 17 November 2022 | The interlocutary application in the case (refer to 23 November 2021 on the timeline) is heard. The judge rules that Eskom's explanatory affidavit will be permitted during the main hearing in March, 2023. |
| 7 September 2022 | A case management meeting will take place on 7 September 2022 before the Judge-President of the court. The Judge-President is considering the court papers and a special allocation date. |
| 16 August 2022 | Naledi Local Municipality's legal team indicates that, after a discussion with Eskom, they do not intend to proceed with their interlocutory application (on the court roll for 17 November 2022) for the scrapping of Eskom's supporting affidavit. Sakeliga objects to the manner in which Naledi approaches the issue, as Naledi is supposed to file a formal notice of withdrawal in terms of the court rules, and also tender the wasted costs occasioned by their application. It seems that Naledi wants to reserve the right to raise the interlocutory issue during the main application, which step would lead to a postponement of the case. |
| 15 June 2022 | Sakeliga's legal team again applies to the Judge President of the court for a special allocation of the case, in light of the request that was already submitted on 14 December 2021. Naledi Local Municipality's interlocutory court application in the case (refer to 23 November 2021 on the timeline) is also allocated on the roll for 17 November 2022. |
| 6 Junie 2022 | In response to the Minister of Finance's invitation to "engage in conversation" about Sakeliga's municipal litigation, Sakeliga writes to the Minister of Finance's office and indicates willingness to engage in conversation. |
| 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 2021 | The 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 2021 | Naledi 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 2021 | Sakeliga 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 2021 | Since 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 2021 | 1st 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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