The frantic bid by the ANC-EFF-IFP-NFP-run eThekwini municipality in KwaZulu-Natal to appeal a Supreme Court of Appeal (SCA) ruling that compelled it to pay R30-million plus interest to a company that had its tender unfairly canned has dismally failed.
The municipality is now not only left with an egg on its face, but it also has to pay interest and hefty legal fees to the Durban-based company. The debts accumulated from the year when the tender was arbitrarily cancelled.
The final amount the badly managed metro has to pay, including legal costs, is estimated at R52m.
No prospects of success
In its ruling, the Constitutional Court said the appeal by eThekwini has no prospects of success. It dismissed the appeal without even having an open hearing.
“The Constitutional Court has considered the application for leave to appeal. It has concluded that the application should be dismissed, as it bears no reasonable prospects of success. The Court has decided to award costs, but not the costs of two counsel.
“A request for costs on Scale C is inapposite. Because the scales for taxation contained in the Uniform Rules of Court are not applicable to the taxation of costs in this Court. Order: Leave to appeal is refused with costs,” reads the Concourt ruling dated June 4 2025.
Pholoba’s projects had a contract with eThekwini’s electricity department, a division riddled with corruption.
Initially settled out of court
However, its contract was cancelled, and the company was red-listed. After engagements between the lawyers of the two parties, the matter was settled out of court.
But later, eThekwini reneged on the settlement. The matter was taken to the Durban High Court, where the company won. Undeterred and armed with limitless billions from the ratepayers’ purse, eThekwini took the matter to the SCA. And it dismally lost.
Despite that shattering loss, eThekwini splashed more taxpayers’ money and took the matter to the apex court. It has now lost.
