The ANC-run Ilembe District Municipality in KwaZulu-Natal is facing a massive lawsuit after it allegedly breached a fleet rental contract and was left with a bill of R51-million.
The bill is set to balloon once interest and legal fees are added, should the municipality lose the mooted court battle.
This is contained in a letter of demand dated April 22 2025, which was sent by Bouwer and Olivier law firm to Municipal Manager Sazi Mbhele. It was sent on behalf of Fleet Horizon Solutions (Pty) Ltd, a fleet rental company based in Gauteng.
Law firm roped in
The law firm claims that the company had a tender with the municipality which was first signed on October 9 2019. It was subsequently extended for a period of nine months in June 2023. And the municipality, which include KwaDukuza, Mandeni, Maphumulo and Ndwedwe local municipalities, later breached it.
As a result, the law firm has been instructed to sue the district municipality to recover the unpaid monies.
“Our client has also repeatedly attempted to engage with you in a meaningful and constructive manner, to no avail. Despite the numerous demands, ongoing correspondence, and repeated attempts to engage in this regard. This in an effort to resolve this dispute without incurring further unnecessary legal costs, you continue to fail to settle the debt due and owing to our client. Notwithstanding the absence of any defence or semblance of an excuse for the failure to make payment to our client.
Letter of demand
“Your indebtedness to our client remains undisputed. As such, your failure to pay is not only egregious. But it is causing the progressive and wasteful increase of the indebtedness by the amount continuing to attract arrear interest. Your continued failure to settle the debt due to our client has now necessitated us to proceed with the institution of legal action. This we will do without further notice or delay,” reads the letter from the law firm.
The law firm also said that everyday that goes by without the debt being paid, taxpayers are affected. This as the amount accrues interest.
“We feel it necessary to raise the concern. And to point out that the outstanding debt due to our client unnecessarily, and more significantly to the detriment of all taxpayers. It accrues further arrear interest every day that it goes unpaid and deliberately ignored by you. The increase in this debt can only be classified as further fruitless and wasteful expenditure. All attributable to your malicious conduct. And it does not accord with the proper fulfilment of the obligations and responsibilities of a prudent and effective municipality.
Debt, interest to affect taxpayers
“The indebtedness, after the early termination charges and accrued interest, already exceeds R51-million. And the arrear interest accruing each month exceeds R1-million. The delay in dealing with this indebtedness is at your own peril,” further reads the letter.
Spokesperson of the district municipality, Nhlanhla Simelane, would not be drawn into the matter. He said he had forwarded Sunday World’s questions to the relevant authorities for answers. And he had not responded with answers at the time of publishing.
