A consulting engineering company and subsidiary of Rural Maintenance is heading to court over what it calls a ‘male fide vendetta’ it alleges the Nama Khoi Municipality, based in Springbok in the Northern Cape, is driving against the Rural group to the detriment of the community.

This is delaying crucial infrastructure projects to resolve power failures in Springbok, Nababeep, Okiep and Carolusberg and reduce the municipality’s Eskom bill, as well as water supply problems and high operational costs in Kleinzee.

Moneyweb reports that the latest litigation initiated by Bosch Garner Niemand (BGN) follows an order Rural Maintenance obtained against the municipality in December to enforce the terms of the Utility Maintenance Agreement (UMA) the parties entered into in December 2024 for a 15-year period.

In terms of the UMA, Rural Maintenance gets paid 12% of the savings it realises for the municipality as well as additional revenue generated thanks to its efforts.

It accused the municipality of failing to pay it almost R12m and misappropriating R76m of such ‘new money’ instead of spending it on improving services as the contract stipulates.

The court ruled against the municipality and imposed a punitive cost order.

BGN in its court papers accuses Nama Khoi of manipulating tender specifications ‘to unlawfully exclude’ it, ‘thereby continuing its male fide vendetta against the Rural group, which has brought transparency to the actions of the municipality and focus on improved service delivery to the community’.

Moneyweb reports that this relates to a tender issued in August last year for the appointment of a principal agent in technical and engineering services and management consulting services for a three-year period.

Full Moneyweb report