25 November 2013 Read: 1175
Summons against the Greater Tzaneen Municipality for an amount of R36 746 937,04 has been issued and the case will be heard in the South Gauteng High Court (Johannesburg) on a date to be confirmed.
The plaintiff is Phadima Group Holdings (Pty) Ltd of Mr Rale (Ralebala Matome) Mampuele who would have developed the Aqua Park Security Estate (Avis Park Ext 53) next to Voortrekker Road on the way to the Tzaneen Dam. The claim is a result of the GTM having cancelled the deed of sale at a stage when Phadima had already done a lot of work to put in services (roads, electricity, storm water, sewerage etc). Mampuele is reluctant to say much about the case, but according to documents that Bulletin has seen, certain details of this transaction will almost certainly end up with the Hawks and/or the public protector, Adv Thuli Madonsela. The names of two previous municipal managers, Mr Mabakane Mangena and Ms Conny Mametja, feature prominently in the documents.
Meanwhile, the GTM tried to stop Saturday’s auction of the land. They asked the High Court on Friday last week in an urgent application for an interdict to stop Saturday’s auction, which Phadima had arranged. However, Judge Tuchsten ruled against the GTM. The auction went ahead, but only in the sense that an offer was made by a prospective buyer and this is now being considered by Phadima and other role players. In the documents that the Bulletin have seen, words like misrepresentation, fraud, deception and dishonesty are used and this case could become a nightmare for the GTM.
The GTM’s legal costs are substantial and growing at an alarming rate. It is being said that the legal costs are already exorbitant and that a proper investigation of the municipality’s legal accounts has become a matter of urgency.