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Litigation keeps Metro Municipality in court


The Nelson Mandela Bay Municipality is involved in 64 litigious matters, according to a report to be submitted to the Municipal Public Accounts Committee which meets next week.

The matters range from challenges with regarding the lawfulness of the manner in which last year's budget was passed, to claims for injuries suffered, unlawful assault by municipal traffic officers and breach of contract.

According to the report, a date is now awaited from the Registrar of the High Court for argument in a case in which five companies have launched an application to have the resolutions taken by Council on June 28 last year when it adopted the budget for the 2011/12 financial year declared unlawful.

In a second case, the Ratepayers' Association has also launched an application to have the resolutions taken on June 28 last year with regard to the increase in the water tariff set aside.

The report says the municipality is opposing the application and has filed its opposing affidavits.

The Ratepayers' Association must now file its replying affidavits after which a date will be obtained for the hearing of argument.

A case that will be watched with considerable interest by business in Nelson Mandela Bay is one in which Clover South Africa has instituted a claim for damages associated with a loss of profit and increased cost of working and other consequential losses.

The claim is based on the alleged breach by the NMBM of its duty of care to ensure continuous and consistent water supply.

Summons was served in September 2011 but pleadings are still be exchanged by the parties, according to the report.

The majority of cases concern individuals who have suffered bodily harm for which they claim the municipality is responsible.

Two of the claims concern an incident in February 2009, when the person concerned was driving down Gibaud Street approaching the sub-station when it exploded.

The municipality has entered an appearance to defend.

(Source: Metro Minute - to subscribe mail metminutes@iafrica.com)