NOORDWESTER – LICHTENBURG - The Mahikeng high court has ordered Ditsobotla Local Municipality to pay more than R7.5m, plus interest, to Kwende Construction CC within 14 days, after a payment dispute over emergency electrical repairs.
The ruling stems from a contract awarded on 7 November 2023 in which the municipality appointed Kwende to restore electricity to six areas after a major power failure. The contract was valued at R7.6m.
According to court papers, Kwende completed the repairs by 13 December 2023 and Ditsobotla issued a certificate of compliance on 17 December that year, confirming that work was done.
Five days later, the municipality paid R100 000 towards the contract and signed a written acknowledgment of debt and repayment agreement, confirming it still owed R7.5m.
The municipality has now been ordered to make payment to Kwende in the amount of R7.5m, including interest, thereon a tempore mora (a Latin phrase denoting the date on which an obligation to pay becomes due and when interest may be charged when payment is not made) at the legally prescribed rate from 31 January 2024 to the date of final payment.
Ditsobotla later refused to settle the outstanding balance, saying the procurement process was irregular, making the contract unlawful.
It argued that the certificate of compliance and acknowledgment of debt could not override legal principles if the underlying appointment was invalid. The municipality also said Kwende had not submitted detailed invoices or supporting documents.
The court rejected these arguments, finding Ditsobotla’s denial “bare and unsubstantiated” and falling “far short of creating a genuine dispute of fact”.
It ruled that the municipality could not use allegations of illegality to escape its financial obligations after having accepted the work and committing to repayment.
