eThekwini ratepayers could fork out more than R1.2 million, excluding legal fees, for the storage of five municipal vehicles that have been at a panel-beater’s workshop for over two years.
Richard Govender, a former Durban metro police officer who left the force several years ago, said his company, Pinetown Panel Beaters, had been locked in a legal wrangle with the municipality since 2010.
He said three Nissan Almeras, one Ford Ranger Bakkie, a Toyota Hilux Bakkie and a trailer had been brought in with dents, scratches and rust. He said his understanding was that the vehicles needed to be refurbished for the 2010 World Cup.
Although he completed the work required over two years ago, the vehicles had not been collected and the costs had escalated to R1.2m.
Govender served the municipality with a letter of demand in February 2010 for payment of R460 000, and gave the city 30 days to respond, to no avail. He sent a second letter of demand to the municipality in March last year for R960 000, but it did not respond. “The municipality owed me R38 000 in 2009,” he said.
Refurbished
Govender said he was charging the city R185 a day for each vehicle.
“We just refurbished the cars because they were not smashed or involved in an accident,” he said.
But the municipality claims that an inspection done at Pinetown Panel Beaters showed that the vehicles had not been repaired and that Govender refused to provide documentation for the work.
Govender denied both claims.
In a report tabled before the executive committee yesterday, signed by city fleet head Malcolm Joshua, city treasurer Krish Kumar and municipal manager Sibusiso Sithole, the municipality was advised to lodge a guarantee of R1.1m in the interest-bearing account of attorneys Berkowitz Cohen Wartski, who are acting in this matter.
The interest in the account will accrue to the municipality. “Attorneys for the municipality have calculated the amount of the guarantee to be R1 174 716.52, which takes into account all storage charges to date. Each day that the vehicles remain in the possession of Pinetown Panel Beaters, additional storage charges are incurred,” he said.
In November last year, metro police deputy head Steve Middleton said that a report from the city’s internal audit unit in August 2009 had highlighted mismanagement in the maintenance of metro police vehicles. He said it was decided that all payments be halted and the matter reported to the ombudsman and the head of investigations.
DA caucus leader Tex Collins asked if it was possible for the city to cut its losses. However, municipal legal services head Nokhana Moerane said Govender had taken the municipality to court and that the municipality was challenging the matter.
