A businessman from the Free State is refusing to return 12 vehicles to the ailing Maluti-a-Phofung municipality on the grounds that he is owed more than R2 million for repairing and maintaining them.
Tsatsi Ramalitsi, owner of Juny Trading, a Qwaqwa-based car servicing company, claimed that the municipality owes him more than R2.4 million for the vehicles he repaired. After he had repaired automobiles this year, he said that the municipality had sent him from pillar to post over payment.
“I have been repairing city vehicles since 2020, and receiving payment has never been an issue. In reality, I was approached by authorities from the municipality to aid them in repairing the cars so that the municipality can continue delivering services to the public. All was okay until this year, when the town refused to pay me what was owed. I am owed R2.4 million for the services rendered. My attorneys issued a demand letter to the municipality, but they have refused to budge,” stated Ramalitsi.
He stated that the entire event had severely harmed his business.
“Because they refused to pay me, I impounded twelve vehicles, including a garbage truck, tractor, tractor-loader-backhoe (TLB), sedans, and bakkies. They came here searching for their property, claiming that they were suffering a service delivery issue due to a lack of vehicles, but I told them they had pay me first. They are busy making a mess at the local government and failing to pay me what is owed to me, while on the other hand they are bothering me by demanding the release of seized vehicles. I did not steal those automobiles, but they brought them here and are now asking that I release them while they owe me money. “That will never happen, as I repaired their vehicles and they refuse to pay me,” he claimed.
During a conference call with the spokesman of Maluti-a-Phofung, Thabo Kessah, and this reporter, Ramalitsi indicated that he was sick and tired of being used by the municipality.
“Listen, Thabo, I don’t care if the municipality is bankrupt; you owe me money, and I want it. I am unwilling to listen to your foolishness because you are all crooked at that municipality. Ramalitsi told Kessah, “All I want is my money, and once I receive it, I will release the impounded automobiles.”
Kessah said, “You are barking up the wrong tree, as I am not responsible for the problems you are experiencing with the municipality. This subject is before the court on account of your petition, and it will be handled legally.”
Ramalitsi lost his temper and exclaimed, “You are lying here.” I will never take this subject to court, but I have sent a demand letter, and you and others in the municipality are determined to resolve it. Don’t tell me nonsense.”
In the demand letter sent by Ramalitsi’s attorneys Corne Boshoff Attorneys to the municipality on 10 November, the lawyers demanded that Maluti-a-Phofung pay their client a total of R2 468 189.20 for mechanical services and repairs “done by our client on the municipality’s instructions and express demand.”
“Despite our client’s demand for payment, you have forgotten and/or failed to pay the above-mentioned amount that is due and payable. The letter of demand states, “Should you fail to pay the amount of R2 468 189.20 plus legal fees within 30 days of the date hereof, we have been instructed to initiate immediate legal action against you in order to recover the balance due and payable to our client, along with additional interest and legal fees.”
In a letter dated 21 November, the acting municipal manager of Maluti-a-Phofung, Sam Makhubu, responded to Ramalitsi’s attorneys, stating that the businessman should produce a service level agreement (SLA) that he had signed with the municipality, along with copies of the quotations, outstanding invoices, and order forms, which will serve as proof that services were indeed rendered.
However, Ramalitsi maintained that it was not his responsibility that the supply chain management and procurement procedures were not followed.
“I am not employed by the municipality in order to do their duties, as that has nothing to do with me. “They should simply pay me,” he stated.
Sello Dithebe, a spokeswoman for the Department of Cooperative Governance and Traditional Affairs (Cogta) in Free State, stated, “Each municipality has its own administration, and the department just provides support for all municipalities to carry out their duties. When Maluti-a-Phofung appointed Mr. Ramalitsi to repair their vehicles, the question of whether the proper procedures were followed can be answered by the municipality. “It is safe to say that if compliance with the relevant sections of the Municipal Finance Management (MFMA) Act may not have been observed, the problem will be marked by the Auditor General as a likely instance of unauthorised, irregular, pointless, and wasteful spending,” stated Dithebe.
Dithebe added that the municipality had informed the attorneys representing Maluti-a-Phofung and Ramalitsi that the contested account was in their hands.
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