What happens when Joburg Water cuts your fibre connection in half?
Image: Ron/Ai
A recent court case in the Johannesburg High Court has shed light on what happens when a fibre connection is destroyed through Johannesburg Water's actions, or that of one of its contractors.
Burst water pipes that then require streets digging up to repair them are a known occurrence in the area, with the City conceding in the 2018/19 financial year that 42 977 pipe bursts occurred. These are the latest figures IOL could locate.
A decision, handed down on Wednesday, explained that telecoms companies need to sue under one law, the Institution of Legal Proceedings Against Certain Organs of State Act, and not any other.
Dark Fibre Africa (DFA), which owns and controls a network of underground fibreoptic cables that it rents to other companies, alleges that Johannesburg Water, or its contractors, negligently damaged one of Dark Fibre's cables while performing work on an underground water pipe in Greenside, Johannesburg.
The fibre company, which is owned by Maziv, instituted proceedings in the Johannesburg Regional Court claiming just over R320 000 for what it said was the reasonable cost of repairing the damage caused.
Where DFA went wrong, the judgement said, is that it didn't, within six months of the debt occurring, deliver a 'notice setting out the facts giving rise to the debt and the particulars of the debt insofar as these are known to the claimant' to Johannesburg Water under the Legal Proceedings Act.
DFA had initially argued that, because Johannesburg Water was not an organ of state, it didn't need to provide the utility with the specific notice in terms of the Legal Proceedings Act.
Video Player is loading.
Play Video
Play
Unmute
Current Time
0:00
/
Duration
-:-
Loaded :
0%
Stream Type LIVE
Seek to live, currently behind live
LIVE
Remaining Time
-
0:00
This is a modal window.
Beginning of dialog window. Escape will cancel and close the window.
Text Color White Black Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Transparent Semi-Transparent Opaque
Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps
Reset
restore all settings to the default values Done
Close Modal Dialog
End of dialog window.
Advertisement
Video Player is loading.
Play Video
Play
Unmute
Current Time
0:00
/
Duration
-:-
Loaded :
0%
Stream Type LIVE
Seek to live, currently behind live
LIVE
Remaining Time
-
0:00
This is a modal window.
Beginning of dialog window. Escape will cancel and close the window.
Text Color White Black Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Transparent Semi-Transparent Opaque
Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps
Reset
restore all settings to the default values Done
Close Modal Dialog
End of dialog window.
Next
Stay
Close ✕
The Johannesburg High Court disagreed, stating that Johannesburg Water falls within the definition of 'organ of state' because it carries out its duties on behalf of the municipality. In addition, because its assets and liabilities are the City's assets and liabilities.
'For that reason, Johannesburg Water's liabilities are ultimately underwritten by the state itself,' said the judge. As a result, the state would need to sort out the claimed debt and, because of this, requires the notice of debt be filed within six months, the judgement noted.
However, DFA was not completely sent packing.
DFA did have to pay Johannesburg Water's costs because the utility had appealed a magistrate's decision that it was not an 'organ of state'. However, it can now return to the lower court and start proceedings over after first asking that court to condone the fact that it did not first provide the required notice.
'Dark Fibre must now ask the court below to condone its failure to give the notice section 3 of the Legal Proceedings Act requires. The court below will grant that application if good cause has been shown, if Dark Fibre's claim has not prescribed, and if Johannesburg Water was not prejudiced by the failure to give notice. On the facts of this case, these seem to me to be slight hurdles indeed,' the judgement read.
Yet: 'Dark Fibre's action should be stayed until the court has had an opportunity to answer it,' said the judge.
IOL
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles

IOL News
10 hours ago
- IOL News
Women do more with less: The numbers behind economic inequality
Around 1.2 million women, or 15.9% of those employed, work in the informal sector. Image: Ron | IOL Thirty years after the first official National Women's Day, and 69 years after the historic women's march to the Union Buildings, women in South Africa continue to face barriers to achieving equal participation in the economy. From industry concentration and occupational segregation to informal employment and domestic responsibilities, gender gaps persist across the labour market, Statistics South Africa data has found. This year's Women's Month is marked under the theme Building Resilient Economies for All, underscoring the importance of women's participation in leadership and economic life. But the latest Quarterly Labour Force Survey (QLFS) for the second quarter of 2025 shows that women remain disproportionately affected by unemployment and economic exclusion, it said. South Africa's national unemployment rate is 33.2%, but for women it stands at 35.9%, compared to 31.0% for men – a gap of 4.9 percentage points. Education has not erased these divides. Among graduates, the unemployment rate is 12.2%, yet female graduates face a rate of 15.0% compared to 8.9% for men, recently released data showed. Statistics South Africa indicated that the gap is widest among those with only a matric certificate, where women's unemployment sits at 39.3% versus 31.7% for men. Women without a matric record an unemployment rate of 42.8%, compared to 37.0% for men. Participation in the labour force also remains unequal. In the second quarter of the year, 65.6% of men of working age were in the labour force, compared to 54.9% of women, data showed. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ Although the gap has narrowed slightly over the past decade, millions of women remain excluded from formal economic activity. Women are clustered in certain industries, with 32.8% employed in community and social services, 20.6% in trade, 18.0% in finance and 11.4% in private households. They remain underrepresented in sectors such as transport, construction and mining, where representation is just 2.5%, 1.9% and 1.0% respectively. In the logistics sector, just 25% of women believe salaries are equal, compared to 63% of men, and 45% of women suspect that men are paid more for the same work. 'The disconnect between male and female perceptions of workplace equity is deeply concerning,' says Catherine Larkin, Executive Director of the Chartered Institute of Logistics and Transport South Africa. 'If male leaders don't see a problem, it's harder to solve one.' Occupational patterns reflect similar inequalities according to Statistics South Africa: only 6.8% of women hold managerial roles, compared with 10.7% of men, while many are employed in elementary, sales, service and clerical positions. For many, the informal sector provides a crucial safety net. Women are most likely to hold jobs in "softer" careers. Image: Stats SA Around 1.2 million women, or 15.9% of those employed, work in the informal sector. The informal employment rate, which includes workers without pensions, medical aid or contracts, stood at 27.2% for women, representing about two million individuals in vulnerable positions. Domestic responsibilities also weigh heavily on women's participation. Of the 2.4 million people who cited 'homemaker' as their reason for not being in the labour force, 2.1 million – or 88.2% – were women, compared to 280,000 men. Despite progress since the march on Pretoria and the declaration of National Women's Day, the data shows that South Africa's women continue to bear the greatest share of unemployment, informal work and unpaid care. IOL Business


Daily Maverick
10-08-2025
- Daily Maverick
TymeBank's R750m lending leap via acquisition of SanlamTyme JVCo
As the Competition Tribunal approval clears the way for TymeBank's acquisition of SanlamTyme JVCo and the SPL loan book, CEO Karl Westvig's commitment to fair lending faces its biggest test yet. The last time TymeBank CEO Karl Westvig spoke to Daily Maverick, he made bold promises about the digital bank's approach to loan books. 'The mission has always been to be able to profitably bank an entry-level customer… And it's not through the cross sell. It's through core banking,' he insisted. This is banking philosophy 101 from someone who clearly reads the right textbooks, but the market has a way of testing such noble intentions. TymeBank is paying R31.5-million for the 50% JVCo stake, plus approximately R400-million for half of Sanlam's loan book, plus another R320-million for a reference share entitling it to half of the credit life insurance profits from the JVCo loan book. That's a R750 million bet on an expanded lending business for a bank that has built its reputation on being different. 'These are some of the most abused people in the world,' Westvig acknowledged when previously discussing his predominantly low-income customer base. It's rare blunt honesty from a banking executive about the vulnerable position of South Africa's unbanked and underbanked population. Walking in Capitec's shadow Westvig was quick to draw a comparison with the titan of Techno Park that lords over SA's banking sector. 'Capitec fundamentally was a lending business… We've built our business as a transaction-led and savings-led bank.' It was a fair point, but also slightly disingenuous. Capitec's lending-first approach has made it one of South Africa's most profitable banks, particularly among lower-income customers. TymeBank's transaction and savings model might sound more palatable, but profitability in banking, especially when serving entry-level customers, typically requires some form of credit extension. Which brings us to the elephant in the room: this SanlamTyme acquisition is precisely about getting into lending in a bigger way. The question becomes whether TymeBank can maintain its 'fair and reasonable and competitive' lending promise while dealing with the realities of default rates and collection challenges that come with unsecured lending to financially vulnerable customers. Playing the loan game Here's the challenge: TymeBank is inheriting an existing loan book from Sanlam Personal Loans. The collection practices, interest rates, and terms of these existing loans were set by Sanlam, not TymeBank. How the digital bank handles this transition, particularly any customers who may be struggling with repayments, will be the first real test of Westvig's non-predatory commitment. The broader South African lending market is notorious for aggressive collection practices, astronomical interest rates on unsecured loans, and terms that can trap borrowers in cycles of debt. TymeBank's entry into this space, regardless of good intentions, puts it in direct competition with established players who have built profitable businesses on precisely the practices Westvig claims to oppose. What this means for you Expect TymeBank to launch more personal loan options soon, but without the exploitative hooks. If you've been excluded from formal credit before, this deal could open the door. For South Africans tired of tiered fees and opaque charges, TymeBank just got a lot more powerful. The numbers will tell the story The transaction's longstop date is 31 March 2026, with Sanlam planning to reinvest the proceeds into its broader growth strategy. That gives TymeBank roughly 18 months to prove that its approach can work at scale in the lending business. The success of this venture will ultimately be measured not by Westvig's well-intentioned statements about financial inclusion and fair lending, but by TymeBank's loan loss provisions, default rates and, most importantly, customer complaints about collection practices in the quarters ahead. If TymeBank can indeed provide competitive, fair lending to South Africa's underbanked population while maintaining profitability, it would represent a genuine breakthrough in financial inclusion. But the graveyard of financial services is littered with good intentions that couldn't survive market realities. DM


Daily Maverick
08-08-2025
- Daily Maverick
Sanlam merger to test TymeBank's no predatory lending promise
As the Competition Tribunal approval clears the way for TymeBank's acquisition of SanlamTyme JVCo and the SPL loan book, CEO Karl Westvig's commitment to fair lending faces its biggest test yet. The last time TymeBank CEO Karl Westvig spoke to Daily Maverick, he made bold promises about the digital bank's approach to loan books. 'The mission has always been to be able to profitably bank an entry-level customer… And it's not through the cross sell. It's through core banking,' he insisted. This is banking philosophy 101 from someone who clearly reads the right textbooks, but the market has a way of testing such noble intentions. TymeBank is paying R31.5-million for the 50% JVCo stake, plus approximately R400-million for half of Sanlam's loan book, plus another R320-million for a reference share entitling it to half of the credit life insurance profits from the JVCo loan book. That's a R750 million bet on an expanded lending business for a bank that has built its reputation on being different. 'These are some of the most abused people in the world,' Westvig acknowledged when previously discussing his predominantly low-income customer base. It's rare blunt honesty from a banking executive about the vulnerable position of South Africa's unbanked and underbanked population. Walking in Capitec's shadow Westvig was quick to draw a comparison with the titan of Techno Park that lords over SA's banking sector. 'Capitec fundamentally was a lending business… We've built our business as a transaction-led and savings-led bank.' It was a fair point, but also slightly disingenuous. Capitec's lending-first approach has made it one of South Africa's most profitable banks, particularly among lower-income customers. TymeBank's transaction and savings model might sound more palatable, but profitability in banking, especially when serving entry-level customers, typically requires some form of credit extension. Which brings us to the elephant in the room: this SanlamTyme acquisition is precisely about getting into lending in a bigger way. The question becomes whether TymeBank can maintain its 'fair and reasonable and competitive' lending promise while dealing with the realities of default rates and collection challenges that come with unsecured lending to financially vulnerable customers. Playing the loan game Here's the challenge: TymeBank is inheriting an existing loan book from Sanlam Personal Loans. The collection practices, interest rates, and terms of these existing loans were set by Sanlam, not TymeBank. How the digital bank handles this transition, particularly any customers who may be struggling with repayments, will be the first real test of Westvig's non-predatory commitment. The broader South African lending market is notorious for aggressive collection practices, astronomical interest rates on unsecured loans, and terms that can trap borrowers in cycles of debt. TymeBank's entry into this space, regardless of good intentions, puts it in direct competition with established players who have built profitable businesses on precisely the practices Westvig claims to oppose. What this means for you Expect TymeBank to launch more personal loan options soon, but without the exploitative hooks. If you've been excluded from formal credit before, this deal could open the door. For South Africans tired of tiered fees and opaque charges, TymeBank just got a lot more powerful. The numbers will tell the story The transaction's longstop date is 31 March 2026, with Sanlam planning to reinvest the proceeds into its broader growth strategy. That gives TymeBank roughly 18 months to prove that its approach can work at scale in the lending business. The success of this venture will ultimately be measured not by Westvig's well-intentioned statements about financial inclusion and fair lending, but by TymeBank's loan loss provisions, default rates and, most importantly, customer complaints about collection practices in the quarters ahead. If TymeBank can indeed provide competitive, fair lending to South Africa's underbanked population while maintaining profitability, it would represent a genuine breakthrough in financial inclusion. But the graveyard of financial services is littered with good intentions that couldn't survive market realities. DM