Sol Plaatje Municipality faces a deepening financial crisis.
Image: Sandi Kwon Hoo
THE SHERIFF of the court is set to seize two official vehicles used by Sol Plaatje Municipality’s mayor and speaker following a court-ordered writ of execution to recover an outstanding municipal debt.
The municipality owes Makone Consulting Engineers R806,500.57 plus interest for services rendered in reconstructing toilet top structures in certain areas of Kimberley.
Court documents reveal that the municipality had previously sought to halt the execution of the writ, initially issued in June last year. It argued that retaining the vehicles until the date of the sale in execution would not prejudice Makone, while their removal would disrupt service delivery and lead to additional taxpayer-funded storage fees.
However, Kimberley High Court Judge Cecile Williams dismissed the municipality’s arguments, stating: “In its founding affidavit, the municipality states that it will suffer irreparable harm in the form of paying unnecessary storage and the impact on service delivery if the vehicles were removed … No explanation is given as to the impact the execution of the writ would have on service delivery.
“It cannot be that there are no other municipal vehicles which these officials can use in performing their duties. Likewise, no information has been given as to the costs of storage. The applicant has furthermore failed to show that Makone is a ‘man of straw’ and that it would not be able to recoup such losses in the event a rescission of the default judgment is granted.
“Meanwhile, Makone, who has done everything according to the rules, is expected to wait for payment of the judgment debt until the rescission application is finalised. In my view, the municipality has failed to show that it would be in the interest of justice to have the execution suspended.”
In the wake of the court ruling, the Democratic Alliance (DA) in Sol Plaatje has voiced strong opposition to the potential procurement of new vehicles for political office bearers should the mayor and Speaker's SUVs be auctioned off.
Chris Whittaker, a DA councillor in Sol Plaatje, said the matter highlights the municipality’s financial instability and echoes the Auditor-General’s concerns over its ability to remain a going concern.
“A municipality should have sufficient cash on hand to cover expenses for three months. Sol Plaatje doesn’t have enough cash flow to cover one month’s expenditure and must therefore choose which creditors to pay and which payments to defer. This is why Sol Plaatje has repeatedly failed to meet its obligations to Eskom and why it takes over a year to pay creditors, according to the Auditor General,” Whittaker said.
He described the situation as "inexcusable," saying that small businesses - the backbone of the economy - are suffering due to the municipality’s failure to pay its debts on time.
The DA has vowed to recommend to council that, should the vehicles be attached and auctioned, the municipality should not “place the burden back on taxpayers” by purchasing new SUVs. Instead, Whittaker said, funds should be allocated towards essential service delivery vehicles such as sewage trucks, refuse trucks and grabber trucks.
The DA also suggested that political office bearers procure their own vehicles using tax rebates or use existing passenger vehicle fleets, arguing that this would not impact service delivery.
This development comes against the backdrop of Sol Plaatje Municipality’s broader financial crisis.
Last year, it was downgraded to a Category 4 municipality due to escalating financial difficulties, including an outstanding R1 billion debt to Eskom for bulk electricity. The downgrade followed ongoing concerns about deteriorating water and sewerage infrastructure and a critical lack of bulk services.
The DA has also stated that it will request a full report from the Municipal Public Accounts Committee (MPAC) on all pending court cases involving the municipality, citing concerns that councillors were not adequately informed about this latest legal dispute.
Sol Plaatje Municipality had not responded to media enquiries by the time of publication.