A company chasing a R41.6 m claim against the eThekwini Municipality saw its legal bid for documents thrown out of court because it didn’t exist.

The case stemmed from an erroneous statement at a council meeting, which led to Solbeth Security Protection Services chasing the Auditor-General SA (Agsa) for documents it did not have.

The dispute started when Solbeth instituted proceedings against the eThekwini Municipality in December 2021, suing for payment of about R41.7m for security services allegedly rendered between October 2019 and September 2020.

IoL reports that Solbeth claims the services were provided under a partly oral and partly written agreement between its CEO and the municipality’s municipal manager.

The court bid against the AG has its roots in a council meeting held to address audit findings for the financial period ending 30 June 2024.

The legality of this contract was seemingly raised during that meeting, where Agsa auditor Nonkuthalo Phephu inadvertently and erroneously confirmed that the contract existed.

The statement was later withdrawn, but Solbeth persisted in trying to secure documents from Agsa.

‘In response to questions posed at (30 January 2025 council) meeting, (Phephu) verbally confirmed the existence of such a contract between Solbeth and the municipality,’ the judge wrote.

IoL notes that the court added that ‘it subsequently emerged that this response was incorrect.

Agsa later clarified that the statement had not been based on any audit finding or review of contractual documentation, but rather on a general understanding of cybersecurity and ICT risk management.’

In awarding costs against Solbeth, the judge said, ‘while the issue could have been resolved by consent in chambers… Solbeth put the Agsa to unnecessary legal costs involving an opposed application’.

Full IoL report