Gauteng businessman threatens legal action against Kannaland Municipality over contract dispute
A Gauteng businessman is threatening court action against Kannaland Municipality for contractual breaches.
Image: File
A Gauteng businessman has slapped the Kannaland Municipality with a legal letter, summoning it to a roundtable meeting or face court action.
The dispute arises from the termination of a contract awarded to Imbriolo Construction (Pty) Ltd, partly owned by Mfusi Ngayi, for the refurbishment of the Ladismith Wastewater Treatment Works.
Ngayi has accused the municipality management of corruption and favouritism, alleging that the contract was terminated unfairly.
The municipality, led by Dillo Serero as the municipal manager, claims that Imbriolo Construction abandoned the contract without cause and failed to proceed with the work according to the approved programme.
In a strongly worded letter, Imbriolo Construction's legal representatives accuse the municipality of acting unlawfully and failing to engage with the contractor on a bona fide basis. The letter states that the contractor has remained in compliance with its obligations and that the municipality's actions are "unlawful and will not be tolerated".
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 ✕
"We refer to our letter dated 18 June 2025. As you know, we act on behalf of Imbriolo Construction (Pty) Ltd. You are called upon to indicate whether you will agree to attend a round table meeting between the parties, in an effort to reach an amicable settlement," the letter reads.
The dispute centres around the certification of Interim Payment Certificate 10 (IPC 10), which was delayed by the Employer's Agent, Black Dynasty. Imbriolo Construction alleges that Black Dynasty failed to certify IPC 10 within the stipulated timeframe, constituting a breach of their obligations.
"Black Dynasty failed to certify IPC 10 and were thus in breach of their obligations from 08 April 2025. Our client made repeated attempts to engage with yourselves and Black Dynasty regarding the breach, including a request to formally convene the dispute resolution processes," the letter states.
The municipality terminated the contract on June 9, 2025, alleging that Imbriolo Construction had abandoned the project without cause.
However, Imbriolo Construction disputes this, claiming that they were forced to suspend work due to non-payment.
"Your actions are unlawful and will not be tolerated by our client. Should we not hear from you as to whether or not you are agreeable to the above within 7 (seven) calendar days of the receipt hereof, our client will then be left with no alternative but to issue a summons against you," the letter warns.
Imbriolo Construction's legal representatives propose a round table meeting or adjudication to resolve the dispute amicably.
If the municipality fails to respond or agree to these proposals, Imbriolo Construction will proceed with court action, seeking damages and costs.
"We trust that you will be guided accordingly, and look forward to hearing from you in this regard. This letter is in no manner intended to be an exhaustive synopsis of all the issues at hand, nor is it intended to be construed as a waiver or abandonment of our client's rights," the letter concludes.
Questions sent to both the municipality and Black Dynasty were ignored for over a week.
The questions included why the municipality had issued a termination notice under Clause 9.2.1.3 of the General Conditions Contract 2015, and what contractual provisions supported the decision?
Independent Media has documents that support that the contract was signed on May 15, 2024, with an initial contract amount of R20,117,157.63 (incl. VAT), later amended to R11,934,014.12 (incl. VAT).
The site was handed over to Imbriolo Construction on May 14, 2024, and work commenced immediately.
However, Imbriolo Construction submitted IPC 10 for certification, but Black Dynasty (the Employer's Agent) failed to certify it within the stipulated timeframe, after which Imbriolo Construction notified the municipality and Black Dynasty of its claim for payment, citing contractual breaches.
The municipality and Black Dynasty alleged that Imbriolo Construction had been overpaid, and certification would be negative.
According to Ngayi, Imbriolo Construction ceased work and held the site as a claim of lien due to non-payment, after which the municipality issued a termination notice.
Imbriolo Construction further disputed the termination notice and alleged that the Employer's Agent had unilaterally certified IPC 10 with incorrect information.
mashudu.sadike@inl.co.za
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
IOL News
5 hours ago
- IOL News
Gauteng businessman threatens legal action against Kannaland Municipality over contract dispute
A Gauteng businessman is threatening court action against Kannaland Municipality for contractual breaches. Image: File A Gauteng businessman has slapped the Kannaland Municipality with a legal letter, summoning it to a roundtable meeting or face court action. The dispute arises from the termination of a contract awarded to Imbriolo Construction (Pty) Ltd, partly owned by Mfusi Ngayi, for the refurbishment of the Ladismith Wastewater Treatment Works. Ngayi has accused the municipality management of corruption and favouritism, alleging that the contract was terminated unfairly. The municipality, led by Dillo Serero as the municipal manager, claims that Imbriolo Construction abandoned the contract without cause and failed to proceed with the work according to the approved programme. In a strongly worded letter, Imbriolo Construction's legal representatives accuse the municipality of acting unlawfully and failing to engage with the contractor on a bona fide basis. The letter states that the contractor has remained in compliance with its obligations and that the municipality's actions are "unlawful and will not be tolerated". 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 ✕ "We refer to our letter dated 18 June 2025. As you know, we act on behalf of Imbriolo Construction (Pty) Ltd. You are called upon to indicate whether you will agree to attend a round table meeting between the parties, in an effort to reach an amicable settlement," the letter reads. The dispute centres around the certification of Interim Payment Certificate 10 (IPC 10), which was delayed by the Employer's Agent, Black Dynasty. Imbriolo Construction alleges that Black Dynasty failed to certify IPC 10 within the stipulated timeframe, constituting a breach of their obligations. "Black Dynasty failed to certify IPC 10 and were thus in breach of their obligations from 08 April 2025. Our client made repeated attempts to engage with yourselves and Black Dynasty regarding the breach, including a request to formally convene the dispute resolution processes," the letter states. The municipality terminated the contract on June 9, 2025, alleging that Imbriolo Construction had abandoned the project without cause. However, Imbriolo Construction disputes this, claiming that they were forced to suspend work due to non-payment. "Your actions are unlawful and will not be tolerated by our client. Should we not hear from you as to whether or not you are agreeable to the above within 7 (seven) calendar days of the receipt hereof, our client will then be left with no alternative but to issue a summons against you," the letter warns. Imbriolo Construction's legal representatives propose a round table meeting or adjudication to resolve the dispute amicably. If the municipality fails to respond or agree to these proposals, Imbriolo Construction will proceed with court action, seeking damages and costs. "We trust that you will be guided accordingly, and look forward to hearing from you in this regard. This letter is in no manner intended to be an exhaustive synopsis of all the issues at hand, nor is it intended to be construed as a waiver or abandonment of our client's rights," the letter concludes. Questions sent to both the municipality and Black Dynasty were ignored for over a week. The questions included why the municipality had issued a termination notice under Clause 9.2.1.3 of the General Conditions Contract 2015, and what contractual provisions supported the decision? Independent Media has documents that support that the contract was signed on May 15, 2024, with an initial contract amount of R20,117,157.63 (incl. VAT), later amended to R11,934,014.12 (incl. VAT). The site was handed over to Imbriolo Construction on May 14, 2024, and work commenced immediately. However, Imbriolo Construction submitted IPC 10 for certification, but Black Dynasty (the Employer's Agent) failed to certify it within the stipulated timeframe, after which Imbriolo Construction notified the municipality and Black Dynasty of its claim for payment, citing contractual breaches. The municipality and Black Dynasty alleged that Imbriolo Construction had been overpaid, and certification would be negative. According to Ngayi, Imbriolo Construction ceased work and held the site as a claim of lien due to non-payment, after which the municipality issued a termination notice. Imbriolo Construction further disputed the termination notice and alleged that the Employer's Agent had unilaterally certified IPC 10 with incorrect information.
IOL News
6 hours ago
- IOL News
BRICS: The key to a new World Order through expansion
At the 2023 BRICS Summit in South Africa, six more countries were accepted as members into BRICS. Image: GCIS THE annual BRICS Summit, to be attended by heads of state, takes place in Brazil's Rio de Janeiro in early July. BRICS (Brazil, Russia, India, China and South Africa) is expanding at the speed of light. At the 2023 BRICS Summit in South Africa, six more countries were accepted as members into BRICS. They were Ethiopia, Egypt, UAE, Iran, Qatar and Argentina. Argentina pulled out soon afterwards following an electoral victory by a pro-West Libertarian Party led by President Javier Milei in Buenos Aires. Yet as things stand, up to 40 countries are knocking on the door of BRICS. They are led by the great Asian regional powerhouse, Indonesia. I paint a picture of the role of BRICS in global affairs to illustrate its emergence as a power of great significance. The BRICS Summit in Brazil takes place at a time of extraordinary changes in geopolitics, underscored by the rapidly unfolding disintegration of Western hegemony that has held firm since the end of WWII in 1945. The US, the major glue that has led the West as a united front through formations such as Nato, among others, has unleashed tariffs on Europe in a move that has shaken the foundation of the Western alliance. Under President Donald Trump, Washington's main focus is to 'Make America Great Again', or 'America First' foreign policy that has left the globalists reeling. 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 scramble to keep together the crumbling cookie is a spectacle to watch. Just this week at the Nato summit at The Hague, Trump had to be cornered into grudgingly endorsing Nato's Article 5, which refers to the principle of 'an attack on one is an attack on all'. In fact, so desperate was Nato secretary-general Mark Rutte to have Trump not mess up the meeting that he called Trump 'Daddy'. For far too long, Europe has been scavenging on the US. 'The European Union was born to screw the United States,' Trump lashed out in February this year. It is the EU to raise its budget spending on defence to at least 5% of its national budgets, Trumped insists, and the West has had to reluctantly agree for fear of being totally abandoned by Washington. In contrast, the rise of the Global South as a force to be reckoned with is intertwined with the impact in the growing importance of BRICS in geopolitics. Across the entire Majority World, the common message is of solidarity, togetherness, cooperation and mutual pursuit of common goals. For instance, Brazil will hold the BRICS Summit under the theme: 'Strengthening Global South Cooperation for More Inclusive and Sustainable Governance'. As the Global South works hard to strengthen its collective rising power in the 21st century, the Global North is grappling with growing schism between member-states, particularly in the ranks of the EU, where Western Europe continues to subtly treat former Soviet Union Eastern European countries as inferior. Addressing the St Petersburg International Economic Forum (Spief) last week, Russian President Vladimir Putin put it bluntly, saying: 'The dominance of the West is over.' Similarly, the foreign policy of China has consistently been premised on the principles of 'shared future', characterised by cooperation that leaves no one behind, great or small. The concerted mobilisation efforts by BRICS countries, marked by a geographic and ideological sense of solidarity borne from the era of liberation wars against colonialism and imperialism, are an emotional magnetic force that drives BRICS. South Africa, another key component of the strategic geopolitical bloc that is BRICS, will play host to the G20 Leaders' Summit at the end of this year under a similar theme that advocates for greater cooperation across the Majority World, as International Relations scholars refer to the Global South nowadays. South Africa's presidency of the G20 will focus on the theme: 'Solidarity, Equality, Sustainability'. The theme so irked the US that the Trump administration's Secretary of State Marco Rubio boycotted the G20 meeting of foreign ministers in South Africa. There have been unabating fears that the US could boycott the end-of-year meeting in South Africa as bilateral ties ad been frosty for an extended period. However, word in diplomatic circles is that the US has had a change of heart and will see Trump attend the G20 meeting. Relations between intra-BRICS countries continue to grow stronger by the day. India emulated the rest of the Global South when it refused to support the Western economic sanctions against Russia. Instead, India has been reselling Russian oil and gas to Europe under the obvious guise that the products were 'made in India'. The BRICS Bank, also known as the New Development Bank, is quietly positioning itself to counter the lending dominance of the US-led IMF and World Bank. Trade by BRICS countries accounts for 40% of the global trade, according to statistics. Additionally, the combined population of BRICS countries account for nearly 50% of the world's population. There are ample opportunities for BRICS to rapidly morph into the most powerful global body, more powerful than the sectarian G7 and the crumbling UN system that continues to be undermined by US-led Western unilateralism. There are a number of strategically aligned Global South entities that, working together, can achieve a lot more, and faster. For example, at this week's Eurasian Economic Forum held in the capital of Belarus, Minsk, President Putin made some telling remarks when he revealed that 'BRICS is working on a digital investment platform'. Putin explained that such an initiative could also be rolled out across the Eurasian Economic Union (EAEU). Putin elaborated: 'We are developing this platform within BRICS, and these ideas could be implemented in the EAEU too.' The pursuit and formation of networks within and across the Majority World, nurturing of cooperative initiatives and unity of purpose are some of the major principles upon which BRICS can serve as a catalyst to the reformation of the Majority World into a true pole of power in international affairs.
IOL News
9 hours ago
- IOL News
Salary increase season - what's realistic and what's not in 2025
Employers' ability to increase salaries is influenced by several factors, including national and global economic growth prospects, company performance and affordability, as well as skills market trends. Image: Independent Newspapers Archives For many South Africans that are formally employed in both the government and private sectors, mid-year marks a pivotal time for mid-year salary reviews and potential raises. It is a time brimming with anticipation and hope, as employees look forward to some financial relief for their hard work and dedication. However, the economic landscape is a complex and ever-shifting terrain. 'Whilst the inflation outlook has improved over the last few months with CPI averaging 3.0% as at April 2025, there's a lot happening both locally and globally that impacts employers' ability to meet everyone's salary increase expectations,' Lindiwe Sebesho, Master Reward Specialist and Executive Committee Member at the South African Reward Association (SARA) said. She advised that employees manage their expectations by understanding the economic factors at play. This understanding can lead to more constructive and better-informed salary conversations, ultimately fostering a healthier employer-employee relations environment focused on driving much needed productivity for the country. 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 ✕ Know the factors at play Employers' ability to increase salaries is influenced by several factors, including national and global economic growth prospects, company performance and affordability, as well as skills market trends. Inflation is expected to remain moderate and within the South African Reserve Bank's 3-6% target range through 2025/26. However, even with recent cuts, interest rates remain high, making debt expensive for individuals and organisations alike, and leaving both employees and employers under financial strain. While we dodged the VAT bullet, the increase to the fuel levy will still hit everyone hard, from individual motorists to company and public service fleets. This cost might be offset by expectations of lower fuel prices but will still have an adverse impact on expenses. Additionally, rising food costs due to droughts and other climatic factors will put further pressure on budgets. Employers will also be hampered by weaker GDP growth than previously predicted, as well as global economic instability fuelled by US President Trump's on-again-off-again tariffs. Tariffs on South Africa's trading partners could create unwelcome local inflation, making organisations wary of committing to higher labour costs. "Considering the present economic circumstances, a balanced approach to salary adjustments is required. The intention is not to undervalue employees but to explore comprehensive strategies for improving the overall employee value proposition in a manner that ensures business sustainability and job security," Sebesho added. Given these facts, you may need more information to optimise your remuneration package beyond just a salary increase. Take a positive approach Despite economic pressures, you can improve your odds by taking some simple steps, such as: Know your job's worth - There are many sources of salary information so you can decide if you are being paid fairly, but make sure you use authoritative information from recognised experts, along with considering remuneration policy information from your employer. - There are many sources of information so you can decide if you are being paid fairly, but make sure you use authoritative information from recognised experts, along with considering remuneration policy information from your employer. Be understanding - If you do your homework and understand your employer's constraints, you can approach your salary increase conversation more rationally and constructively, which could help you win a more positive outcome that also helps you retain your job in the long term. - If you do your homework and understand your employer's constraints, you can approach your conversation more rationally and constructively, which could help you win a more positive outcome that also helps you retain your job in the long term. Show your value - Salary increases are typically based on performance, so now is the time to demonstrate how well you have done personally and your contribution to the organisation's goals – this might help you get a bit more than you expected. - increases are typically based on performance, so now is the time to demonstrate how well you have done personally and your contribution to the organisation's goals – this might help you get a bit more than you expected. See the big picture - Remuneration isn't just about money but includes benefits and other rewards as well, so review your entire remuneration package and ask about non-monetary or money-saving benefits, including how you can flex your retirement benefits to help offset any immediate financial shortfall without compromising your long-term savings goals. Keep it real and respectful While you may be desperate for, expecting or even demanding an above-inflation increase, it is important to be realistic and, especially, respectful during a salary increase conversation. Employers are also strapped due to economic conditions and understanding their limitations without over-comprising yourself will be appreciated. Sebesho said, "It is essential to expect fair and equitable pay that allows you to participate effectively in the economy. However, understanding both perspectives is crucial for balanced salary adjustment negotiations that ultimately safeguard employment."
