Latest news with #MusaMbhele
IOL News
20 hours ago
- Business
- IOL News
Constitutional Court dismisses eThekwini Municipality's appeal over R30 million payout
eThekwini City Manager Musa Mbhele. Image: Supplied The Constitutional Court has dismissed eThekwini Municipality in its long legal battle over R30 million payout to the service provider, Daily Double Trading 479 cc /Pholobas Projects. The municipality had approached the apex to appeal an earlier Durban High Court and Supreme Court of Appeal ruling that favoured the service provider. The Constitutional Court said the application brought by the municipality bears no reasonable prospects. The city revoked its contracts after discovering anomalies in the company's tender award during its investigations a few years ago. It was reported that in 2021, the company took the municipality to the Durban High Court, demanding that the cancellation of the contracts and blacklisting be declared unlawful, and for the court to rule that the municipality was indebted to it in the sum of R44.1m the amount owing for the cancelled contracts. 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 Next Stay Close ✕ However, before the Concourt could hear the matter, an out-of-court settlement was reached by the parties. A deal was struck where a municipal attorney, identified as Mr Moloi at the time, agreed that the municipality would give Daily Double R30 million as a settlement for its illiquid damages. According to the affidavit of City Manager Musa Mbhele, when this came to the attention of the former city manager, Sipho Nzuza, he refused to approve the R30 million payout. 'He stated he would not approve such a transaction as no one, including himself, had the authority to sanction payments above R30 million. He said whoever had told Moloi to strike a deal with Daily Double had been misguided,' Mbhele wrote in his affidavit. Mbhele stated that Nzuza indicated that this matter would need to go before the eThekwini full council for a decision. 'This matter was never placed before the council, and Nzuza made it clear in his affidavit before the High Court that he had refused to sanction the questionable settlement,' he added. Former eThekwini city manager Sipho Nzuza. Image: Zanele Zulu / Independent Newspapers Mbhele said that to this day, he has no idea who authorised or told Moloi to offer the company R30 million. 'If the municipality were to pay this money, no one would account for it,' he said. Additionally, Mbhele said this case raised questions of law that will impact not only eThekwini Municipality but also other municipalities throughout the country. He said the case required the Constitutional Court to clarify the ambit of an attorney's competency to enter into settlements in respect of municipalities and similar organs of state.
IOL News
24-05-2025
- Business
- IOL News
Concerns arise as eThekwini Municipality seeks R1. 5 billion loan
The eThekwini Municipality intends to borrow R1.5 billion to fund capital expenditure for the 2024/2025 financial year. Image: Independent Newspapers The eThekwini Municipality intends to borrow R1.5 billion to fund capital expenditure for the 2024/2025 financial year. The municipality presented a progress report on borrowings for capital projects approval of loan agreements at an Executive Committee (Exco) meeting on Friday. It stated that in accordance with the Finance Management Act, it had made public the information statement and invited, received, and considered the written comments/representation from the National Treasury. The municipality said that in response to concerns raised, it was noted that soliciting comments from the National Treasury was based on the Municipal Budget approved 2024/2025 financial year. 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 Next Stay Close ✕ The municipal management also acknowledged that the city was commended by the National Treasury for its cash covering ratio. The municipality intends to take R500 million loan from the First National Bank over 10 years at an indicative fixed interest rate of 10.040%. Also, it intends to take a R1 billion loan from the Development Bank of Southern Africa over 10 years at an indicative fixed rate of 11.110%. If the loans are approved on Monday at the council meeting, City Manager Musa Mbhele will have to sign off on the loan agreements. The municipality stated that during the process of the loan agreement negotiations, the fixed margin remained unchanged. The final interest rate will be confirmed before the loan is drawn out. Councillor Andre Beetge, DA Exco member, was concerned that the municipality would be taking another loan, with the city having R9.9 billion loan payments outstanding. Sandile Mnguni, eThekwini Municipality's Chief Financial Officer, confirmed that the city is planning to borrow R2 billion in the next financial year; in addition, R1.5 billion the following year, and then another R1.5 billion in the next financial year. "The R1.5 billion that we already approved is for the current financial year. I must indicate that the current outstanding long-term liabilities as indicated have not taken into account the repayment of capital that we undertake every six months," Mnguni said. In the eThekwini Finance Committee meeting, the Inkatha Freedom Party (IFP), ActionSA, Minority Front (MF), the Peoples Freedom Party (PFP), and Democratic Alliance abstained from voting. Only the ANC supported the report by majority vote. Rose Cortes, deputy chairperson of the eThekwini Ratepayers Protest Movement (ERPM), said the borrowing pattern is reckless and speaks to the concerns raised by ratepayers that the municipality is not concerned with reducing spending.
IOL News
23-05-2025
- Business
- IOL News
eThekwini Municipality's City Manager unveils innovative service delivery strategy
eThekwini City Manager Musa Mbhele said that the City was focused on improving service delivery. Image: Doctor Ngcobo Independent Newspapers City Manager of eThekwini Municipality, Musa Mbhele, has outlined a bold new approach to boost service delivery that hinges on real-time accountability, regional management, and technology-driven innovation, while acknowledging systemic weaknesses that continue to frustrate residents. Speaking during the 2025 Customer Services Symposium at the Inkosi Albert Luthuli ICC in Durban and in an exclusive follow-up interview this week, Mbhele said a combination of unannounced site visits, artificial intelligence tools, and decentralised management will form the backbone of the municipality's renewed push for service excellence. 'We've picked up a couple of things that we are not happy about,' Mbhele said, referring to the unannounced depot visits he personally initiated. 'For instance, adherence to the legislated response time after service delivery queries have been raised, it takes too long, particularly when you're dealing with a water leak.' He said delays in responding to faults like water leaks are not just an inconvenience; they have a financial impact. 'The litres of water that we lose equates to the amount of money that we have spent buying that particular treated water.' 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 Next Stay Close ✕ But the problem, he stressed, is not the frontline workers. 'The people in the depots are very well experienced, particularly the superintendent. They love their job. There's passion there. All they need is for us to support them with fleet, staff, and material.' To close the gaps, Mbhele is pushing for 'transversal management' and tighter standard operating procedures between municipal units. 'Sometimes they take long to respond to a water leak because they don't have a TLB to dig up that particular pipe. Now, they are not employed to manage the fleet; they are employed to fix the pipe,' he said. Mbhele said a key solution is regionalising service accountability so that each geographic area has dedicated teams with direct access to all necessary resources from HR and fleet to IT and supply chain, without relying on centralised departments. 'An area manager responsible for the South will have access to all those particular services and be able to provide them without having to wait for someone to come from Prior Road or Springfield.' Mbhele emphasised that this will make it easier for councillors and communities to get quick answers and action. 'It will not have to be the city manager, the executive director, or the mayor being phoned.' In his symposium address, Mbhele reaffirmed that citizen-focused innovation is non-negotiable. He highlighted the eThekwini Mobile App, downloaded over 150 000 times, which allows residents to log faults, pay bills, and get updates. 'This tool reflects our vision of building a smart, digitally enabled city,' he said. The app complements WhatsApp fault-logging lines and a soon-to-be-launched AI system that uses satellite technology to detect water leaks before they cause major losses. 'We are planning to go full steam on artificial intelligence,' he said. 'We also want electricity infrastructure to be monitored with smart sensors to detect tampering or damage before the community even reports it.' Beyond technology, Mbhele said the municipality must improve how it communicates with communities, especially in rural and township areas. 'We are bringing back to the centre, the role of councillors,' he said. But he stressed that councillors cannot calm communities if the municipality itself does not deliver. 'You can't bring the councillors and say they must manage the community's negative response when you as the City have not helped the councillor yourself.' The City Manager warned against destructive protest action. 'When they are not happy about the service, they must not go and put a burning tyre on the road, because they are reducing the lifespan of that particular road. In a few months, they will have to contend with a big pothole.' Mbhele's administration is also reinforcing transparency through the City Integrity and Investigations Unit, which investigates misconduct and allows residents to lodge complaints directly. 'Every municipal bill paid is not just a transaction,' he told delegates. 'It is a vote of confidence in our ability to serve.' THE MERCURY
IOL News
06-05-2025
- Business
- IOL News
eThekwini Municipality Audit and Risk Committee raises concerns over City Integrity and Investigations Unit
eThekwini City Manager Musa Mbhele said that the city was addressing all concerns raised by the Audit and Risk Committee (ARC). Image: Doctor Ngcobo Independent Newspapers The eThekwini Municipality Audit and Risk Committee (ARC) was concerned over the City Integrity and Investigations Unit (CIIU) and whether it had adequate capacity to process the current volume of investigations it had. The consolidated ARC report for the second quarter, which ended at ended 30 December 2024. was presented to the eThekwini Executive Committee (Exco) meeting on Tuesday. The purpose of the report was to provide feedback to Exco about the significant findings between 1 October 2024 to 30 December 2024 to prevent unnecessary risks from materialising. Siboniso Shabalala, ARC Chairperson, said the CIIU report for quarter two was presented recently. Shabalala said the ARC raised concerns regarding the approved structure and the areas that are not funded and that this can have a direct impact on the ability of the CIIU to fully carry out its mandate and may hinder progress in addressing and clearing caseloads timeously. Shabalala said the other area raised was whether the CIIU had adequate capacity to process the current volume as well as whether the various systems and processes in the justice system are creating further delays in closing out the reported items. 'Management gave assurance that ongoing discussions with the Chief Financial Officer continue to source additional funding for the unit and currently, it is being done on an incremental basis. The unit does ensure the competency of the employees but some of the long outstanding cases regarding the implementation of consequence management that is reported, rest with line management to address and close. Ongoing engagement with the units continues to address these matters,' Shabalala said. Shabalala said that ARC also requested management to review how the Unit will address capacity if there is an influx of cases. Shabalala said the resourcing of the unit continues to remain an area of concern as it is critical to improve consequence management and the number of open cases to reduce significantly. Shabalala urged city management to implement action plans that address the root cause of the findings with a sense of urgency. On other issues, the ARC raised questions about ethical hijacking after the ARC found that an internal audit was able to exploit certain vulnerabilities on the CCTV devices which allowed them to upload and delete unauthorised application packages. 'Internal Audit attempted to exploit certain vulnerabilities of critical and high impact via specific open-source software tools after receiving approval and confirmation from management and were able to exploit one vulnerability on the Windows 7 environment which resulted in denial-of-service conditions. However, we were unsuccessful in exploiting the other vulnerabilities,' Shabalala said.
