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Ga-Segonyana municipality’s determination to invalidate a lease contract with a private business owner has come at a significant financial cost to the municipality.

The municipality has incurred R600 000 in legal costs in an illegitimate attempt to get a tenant, who has a 25-year lease agreement with the municipality and operates a licensed garage from the premises, to unduly vacate the land.

The municipality initially tried to evict the tenant and irregularly entered into a new lease agreement with someone else to lease the property for 30 years, charging R10 000 per month with the option to lengthen the lease by another 20 years. This in contrast to the current revenue generation of approximately R90 000 per month. The matter ended up in court and Ga-Segonyana lost.

A few weeks ago, the municipality illegally cut the electricity to the premises. The High Court ordered the Municipal Manager of Ga-Segonyana to restore the electricity. This order was ignored for a prolonged number of days before finally being adhered to.

While the court case is due to resume on 21 July, for the municipality to provide reasons as to why they think the court order should not be permanently stated, the municipality has already made its intention clear that it is going to continue fighting this matter tooth and nail, with the six advocates and lawyers it has appointed to battle this matter out in court.

In addition to the further legal fees, the probability exists that Ga-Segonyana will also have to pay the costs of the applicant.

Whatever the municipality’s ulterior motive for pursuing this matter, it cannot come at the cost of wasteful and fruitless expenditure, to the detriment of municipal revenue collection or in violation of legally binding contracts and judgements.

The DA has referred our concerns to the Office of the Auditor General. We want a review of all the related legal costs included in the next audit report.

Issued by Braam van der Westhuizen, Cllr - Ga-Segonyana municipality