A subsidiary of the Umngeni-Uthukela water board has been dragged to court by former employees who are claiming that their contracts were terminated for political reasons that have to do with the upcoming 2026 local government elections.
Umsinsi Holdings, which is in charge of luxury resorts and the infrastructure around 13 government-owned dams across KwaZulu-Natal, terminated the said contracts on June 30 2025 following a chaotic back-and-forth process.
At the moment, Umsinsi’s case has been brought to the Pietermaritzburg High Court by 13 workers tasked with removing invasive alien plants and encroachments of dams by communities living around the dams.
Threatened to shut down dam in protest
The 13 applicants in the matter are from the Gcumisa traditional council (under Umshwathi). It houses the Nagle dam, which supplies critical water to Durban and Pietermaritzburg, the two biggest cities in KZN.
They may later be joined by 287 other employees whose contracts are due for termination by Umsinsi holding. They have threatened to shut down the dams until their grievances are heard. Some of the employees claim to have worked for the entity for more than 18 years as contract employees. But are now being pushed out to accommodate comrades.
They allege that when the new board came to office, they openly claimed that most of the general workers in dams were members of the MK Party and had to be removed to make way for ANC members who would be required to vote for the latter at next year’s local government elections.
In the urgent court papers, the 13 from Kwa Gcumisa want the court to set aside the decision by Umsinsi. They argue that the law was not properly followed when their contracts were terminated.
“I draw to the attention of this honourable court that the first respondent (Umsinsi) should have organised a proper consultative meeting and discuss all the relevant issues with our legal representative. And by the first respondent’s conduct of terminating our contracts without consulting our legal representatives, it is clear that they have closed any doors for negotiations. And this honourable court is the only proper avenue to ventilate all the issues,” reads the court papers.
Politically motivated
In the same court papers, the 13 axed employees repeat allegations by the others. They claim that the decision to terminate their contracts was politically motivated.
“So far, I can ascertain that this decision is based on political interference by municipal councillors. Those who are working with management at the first respondent’s offices,” they alleged in the court papers.
Chairperson of the board of Umsinsi, Advocate Kwazi Mshengu, said they are aware of the court case.
“Yes the board is aware and defending the matter. The matter was brought to the High Court on urgent basis. But the court ruled that it does not have the jurisdiction to hear the application. The applicants should have taken the matter to the Labour Court,” Mshengu said.
