Durban - Councillors in the eThekwini Municipality have hailed the revelation that the municipality has prevailed in its long-standing dispute over a multimillion-rand debt with the bus company Tansnat, but appealed for transparency over the outcome of the matter.
The city and the bus company have been involved in a protracted legal battle over a debt estimated at hundreds of millions of rand. The company claimed the municipality owed it money and the municipality in turn claimed that the company owed it money.
In 2020, The Mercury reported that the debt purportedly owed by Tansnat was estimated at R600 million. The matter went before a private adjudicator.
Asked about the matter recently, eThekwini mayor Mxolisi Kaunda said it had been resolved “in our (city’s) favour”, while admitting that the judgment also stated there were some other issues raised during the proceedings that would need further attention.
He declined to elaborate further and the municipality has also refused to divulge further information about the outcome of the matter.
Councillors said the finding in the city’s favour was welcomed, but called for transparency on the issue.
IFP councillor Mdu Nkosi said council should be upfront on the matter.
“If the council is not being upfront and is secretive of the matter, that is concerning. If they are not being transparent it means there is something that they are hiding.”
DA councillor Thabani Mthethwa said he would ask for a report on the matter to be tabled before the executive committee.
Patrick Pillay of the Democratic Liberal Congress said the issue required public accountability.
“This is a long outstanding matter that has been a concern for the ratepayers and it warrants public accountability. Nothing has come to our committee and nothing has come to full council.”
Adec leader Visvin Reddy said if the city won the case, it was a victory for the ratepayers. “It is common practice in eThekwini that important information is kept away from councillors. It seems that opposition party members on Exco lack the experience necessary to identify these lapses in following correct procedures in so far as the role of councillors is concerned.
“There should be no reason for councillors to be left in the dark about the outcome of this court proceeding, unless there’s something sinister going on.
“It is the responsibility of the Whip of Council to keep all party whips informed of matters that are important to councillors. He is failing to do this.”
Tansnat COO Vickesh Maharaj said: “We are closely considering the adjudication award which is 126 pages long and taking legal advice. You will appreciate that the adjudication process has been ongoing for over three-and-a-half years with approximately 51 days of hearings, dealing with very complex issues. We will accordingly be guided by our legal team on the way forward and the options that we have at our disposal.
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