Durban businessman not backing down until City pays nearly half-a-billion owed to him
Durban City hall is the headquaters of eThekwini Municipality. Picture: Willem Phungula
Image: Willem Phungula
DURBAN businessman and legal advocate Siyabonga Xulu is taking a hardline stance against the eThekwini Municipality, demanding payment of over R413 million due to his company, Solbeth Security and Risk Management Services.
Xulu, the owner of the Makhathini Group, which oversees 21 companies, told the Daily News, he will not relent until the city settles what's due to him, which includes over R62 million in interest.
Xulu alleged that the municipality refused to pay for the critical security services his company provided to senior officials, including former city manager Sipho Nzuza, dating back to 2019. Now, he is calling on members of the city's Executive Committee (Exco) to intervene and force the city's ANC-IFP-EFF coalition government to act.
'I just want this matter to end now. I want us to find an amicable solution. I'm demanding what is rightfully mine,' said Xulu.
'The city must pay what it owes me. This is a legitimate claim backed by years of services rendered under the city's own instruction. My appeal to Exco is for the councillors to support me because I did the work and I must be paid for that,' he said.
On September 8, 2024, Solbeth sent an official demand to Exco requesting the urgent settlement of R413,161,463. It included unpaid invoices and accumulated interest. Xulu said the city ignored the letter, just one of many signs of what he calls 'intentional delay tactics.'
According to Xulu, his company was brought in during a period of heightened threats against municipal leadership. He alleged that the then city manager, Nzuza, personally appointed Solbeth to provide close protection and covert security operations for high-ranking officials. These services included sweeping and debugging of offices and homes, installing secret surveillance equipment, and monitoring movements of personnel through advanced systems.
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The original agreement was for eight months, with an option for renewal. Xulu claimed that even after the contract lapsed, Nzuza instructed him to continue the work, which he did, for years, believing the city would honor its financial obligations.
'This wasn't casual work,' said Xulu. 'We deployed high-level resources, and expensive technology, and trained personnel to safeguard the lives of municipal leaders. The city knew exactly what we were doing and why. Their refusal to pay now is not only dishonest, it's criminal. That is why we took the matter to court, where the city is also using all the tricks available to delay the matter.'
Xulu said the fallout has been devastating for his business. His lawyer, Theyagaraj Chetty of Theyagaraj Chetty Attorneys, told the Daily News that the city is weaponising the legal system, dragging the matter through the courts while relying on public funds, leaving Xulu to cover all legal expenses himself.
'It's a disgrace. The city is using taxpayers' money to fight a man who protected their officials. Meanwhile, my client is left struggling to cover his business and personal expenses,' said Chetty. 'Solbeth is a major company, and what the city has done has had a knock-on effect on his business.'
Chetty also slammed the court delays, saying the city benefits from a legal system that cannot offer Xulu timely justice. 'You can't even get a court date soon. That delay plays directly into the city's hands while my client suffers.'
Municipal spokesperson Gugu Sisilana defended the city's actions, saying: 'The Municipality is entitled to legally defend itself against unclear claims in order to protect taxpayers' money. Any legal action taken is in the best interests of the public.'
But Xulu was unmoved. He insisted that his claim was not only clear, it's fully justified and backed by documentation.
'I have got all the documents to prove that I did work for the city and was authorised to do that. It is a shame because the city officials are benefitting from something they are not paying for. My equipment is there (city).'
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