Ditsobotla municipality ordered to pay contractor over R7.5m

The Mahikeng high court has ordered Ditsobotla local municipality to pay more than R7.5m, plus interest, to Kwende Construction CC within 14 days, after a payment dispute over emergency electrical repairs.

The ruling stems from a contract awarded on November 7 2023 in which the municipality appointed Kwende to restore electricity to six areas after a major power failure. The contract was valued at R7.6m.

According to court papers, Kwende completed the repairs by December 13 2023 and Ditsobotla issued a certificate of compliance on December 17 that year, confirming that work was done.

Five days later, the municipality paid R100,000 towards the contract and signed a written acknowledgment of debt and repayment agreement, confirming it still owed R7.5m.

The municipality is ordered to make payment to Kwende in the amount of R7,5m, including interest, thereon a tempore morae at the legally prescribed rate from January 31 2024 to the date of final payment.

—  The judgement

Ditsobotla later refused to settle the outstanding balance, saying the procurement process was irregular, making the contract unlawful.

It argued that the certificate of compliance and acknowledgment of debt could not override legal principles if the underlying appointment was invalid. The municipality also said Kwende had not submitted detailed invoices or supporting documents.

The court rejected these arguments, finding Ditsobotla's denial “bare and unsubstantiated” and falling “far short of creating a genuine dispute of fact”.

It ruled that the municipality could not use allegations of illegality to escape its financial obligations after having accepted the work and committed to repayment.

“The municipality is ordered to make payment to Kwende in the amount of R7,5m, including interest, thereon a tempore morae at the legally prescribed rate from January 31 2024 to the date of final payment,” the judgment reads.

SowetanLIVE