The Sekhukhune District Municipality’s coffers continue to be plagued by leakages. Recently, R11,6 million was withdrawn from the municipality’s bank account by Hexagon Technologies and Project Enterprises after it obtained a court order to attach the municipality’s bank account.
The company had been contracted by the municipality to provide pre-cast VIP toilets.
According to documents presented before the Sekhukhune District Municipality council in 2014, Hexagon Technologies initially asked the municipal authorities for the contract price to be adjusted by an additional R7 million, citing price escalation.
Following the municipality’s refusal to give the company more money, it approached the courts and obtained a court order that allowed it to withdraw R6 million from the municipality’s bank account. The sheriff of the court then notified the municipality of the intention to withdraw money from its account, this was allegedly met with silence from the municipality’s legal department.
Second warranty of execution
A second warrant of execution was issued against the municipality for an additional R6 million for interest accumulated since November 2015. By May of 2023, a whopping total of R11,6 million was withdrawn from the municipality’s coffers without any action from the municipality.
However, the municipality denies that nothing was done, and that it did nothing to defend the monies that left its bank accounts.
While the municipality says it was surprised to receive a warranty of execution that allowed Hexagon Technologies to withdraw R11,6 million from its bank account, papers brought before the municipality’s council show that an out of court settlement was reached with Hexagon technologies by its lawyers despite not having any authority to do so.
The out of court settlement was presented to the council by the municipality’s legal manager. However, opposition parties are convinced that it’s all a lie.
Previously, the municipality was accused of spending over R20 million in legal fees to recoup R600 000 that was irregularly paid to individuals who did not render a service to the municipality.
Furthermore, the municipality also allegedly mistakenly paid about R10 million to a service provider without rendering any services. The municipality’s legal manager is currently under suspension. Additional Reporting Avhapfani Munyai
Original Story by www.sabcnews.com