15 hours ago
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".
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"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.
