Legal Articles and Guides
Auditor-General Kimi Makwetu yesterday said more than R1.6bn of the R2bn invested by municipalities into VBS Mutual Bank cannot be recovered. Makwetu, reporting on the audit outcomes of municipalities for the 2017/2018 financial year, described the non-recovery of public funds invested in VBS as a classic example of the 'impact of deteriorating accountability' in municipalities.
The City of Cape Town has welcomed the Gauteng High Court (Pretoria) setting a date to hear its petition to buy electricity directly from independent power producers (IPPs). The city wants the Energy Minister and the National Energy Regulator (Nersa) to allow it to purchase power from IPPs.
A precedent has been confirmed in the Constitutional Court’s recent ruling in Buffalo City Metropolitan Municipality v Asla Construction (Pty) Ltd that may allow government entities to appeal their own decisions – where there is evidence that those past decisions were unlawful – potentially even after several years have passed, and even if their reasons for appealing are possibly questionable.
The controversial decision to grant environmental authorisation for the Watson family's massive wind farm project on the summit of the Groot Winterhoek mountains near Uitenhage has been overturned, at least temporarily.
Umgeni Water broke National Treasury’s rules and awarded a R220m security tender to an ANC-linked company whose taxes were not in order at the time, says a City Press report. In December, Umgeni Water awarded the three-year tender to guard the water utility’s assets to Reshebile Aviation and Protection Services, which at the time owed SARS both payroll tax and VAT. Treasury forbids the awarding of tenders to companies which are not tax compliant.
The Road Traffic Management Corporation (RTMC) has lost a Constitutional Court challenge in a case in which it argued that it was within its rights to renege on a R33m tender agreement. A Cape Times report says the RTMC had in 2009 entered into a service level agreement with Waymark Infotech (Pty) Ltd to develop and install an Enterprise Resource Planning system.
Msunduzi Municipality is under no legal obligation to continue using its security company Khuselani Security and Risk Management (KSA). The Witness report says this follows a ruling by Judge Piet Bezuidenhout of the KZN High Court (Pietermaritzburg).
The City of Cape Town is waiting for the Gauteng High Court (Pretoria) to determine a date to rule on whether independent power producers (IPPs) can supply the city with electricity. A Cape Times report says the city has taken Energy Minister Jeff Radebe and the energy regulator to the High Court to challenge the status quo that allows municipalities to purchase from IPPs only if they have ministerial approval.
Malusi Gigaba, former Home Affairs Minister, was 'incorrect' in granting members of the Gupta family early naturalisation, MPs have decided. The National Assembly's Home Affairs Committee did not recommend sanctions against Gigaba but recommended that criminal charges be laid against Gupta lieutenant Ashu Chawla and members of the Gupta family 'relating to false information submitted in their early naturalisation applications', reports News24.
Makhanda pensioner Monameli Ndumo (70) has taken Arts and Culture Minister Nathi Mthethwa to court to challenge the Grahamstown name change to Makhanda. According to a Daily Dispatch report, Ndumo – who co-chairs an organisation called Keep Grahamstown Grahamstown – said the entire process had been fatally flawed.
A settlement agreement between the City of Tshwane and its controversial smart metering supplier Peu Capital Partners was made an order of the High Court yesterday, says a Moneyweb report. In terms of the order, the city may now remove the meters supplied by PEU and install new meters for the almost 13 000 Tshwane customers, mostly large power users, who have been supplied with electricity through the PEU system.
Four security companies have launched an urgent application at the Western Cape High Court in a bid to prevent the city of Cape Town from implementing a new security tender. A Cape Times report says the 2017 tender was for providing security services to about 3 000 facilities owned or used by the city, as well as various events held under its banner.
Legal advice given to the City of Cape Town reveals that the development plan for Maiden’s Cove was irregular and the City was advised not to proceed with the development. A Cape Argus report notes legal advisers JJ Gauntlett SC QC and FB Pelser said in papers: ‘We consider that the process followed to date with regards to the Maiden’s Cove development is irregular and will be set aside on review. This despite the delay.’
The access restriction fees in Tshwane were definitely not exorbitant and had been calculated in terms of the municipality’s tariff policy. A Pretoria News report says this is according to the city in its response to the application by Residents Against Crime, which asked the Gauteng High Court (Pretoria) to take the metro to task regarding its ‘unreasonable and exorbitant’ tariffs on access restriction applications (to gated communities).
The governing body of Grey College in Bloemfontein was on the receiving end of a severe hiding in the Free State High Court this week in connection with its attempt to curtail the powers of its principal, notes a Volksblad report. Acting Judge-President Cagney Musi declared the governing body had acted unfairly and unlawfully during a meeting at which it was decided that Deon Scheepers should be relieved of all ‘delegated’ powers and in future focus only on academic matters at the school.