The ANC-led Ilembe district municipality in KwaZulu-Natal is disputing the R51-million that a Gauteng fleet rental company is claiming they are owed.
The municipality, which includes KwaDukuza, Mandeni, Maphumulo and Ndwedwe local municipalities, has claimed that, according to its understanding, the disputed bill is R21-million.
The municipality was responding to an article which was carried by the Sunday World on Friday. It confirmed that it has indeed received the letter of demand from Bouwer and Olivier law firm.
Law firm sent letter of demand
The law firm is acting on behalf of Fleet Horizon Solutions (Pty) Ltd, and sent the letter to Municipal Manager Sazi Mbhele.
In the letter, the law firm claimed 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.
The law firm also said that every day that goes by without the debt being paid, taxpayers are affected. This as the amount accrues interest.
Interest on arrears took amount to R51m
“We feel it necessary to raise the concern. And to point out that the outstanding debt is 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.
Law firm insists amount is R51m
“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. 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,” reads part of the letter.
Sipho Mkhize, the manager in the office of the mayor, said they are currently addressing the matter. However, they dispute the figure, he said.
Municipality says it’s R21m
“We wish to clarify that the amount recognised by the municipality as due to Fleet Horizon Solutions. The said amount is R21-million, not R51-million. There have been multiple discussions with Fleet Horizon Solutions concerning the claimed amount of R21-million.
“Fleet Horizon Solutions has yet to provide the requested documentation to substantiate the claimed amount. This is necessary for the municipality to proceed with payment. The specifics of the required information were communicated to the service provider during our efforts to resolve this issue,” Mkhize said.
