A second auction of Enoch Mgijima municipality’s assets is set down for July 27.
In a further potentially lethal blow to service delivery, if the auction does not hit the target the sheriff of the court might even be instructed to attach the Enoch Mgijima municipality’s bank accounts.
At this stage the sheriff, Jenny Coetzer, is under instruction to auction a further 67 vehicles and 13 other items, including fridges and microwaves.
The first auction, held on June 1, resulted in 44 municipal vehicles, including TLBs, graders and bakkies, being sold.
This was to try and repay the R21-million debt the municipality had owed Milowo Trading Enterprise for six years for the construction of a community hall in Sterkstroom.
On the inventory for the latest auction are 15 trucks, six bakkies, concrete mixers, a landfill compactor and four tractors.
Enoch Mgijima needs to find R14-million to settle its debt with Milowo.
The first auction only raised R6.5-million.
This was after a last-gasp attempt to get the Grahamstown High Court to stop it was rejected by Judge Ndumiso Jaji.
He found that the municipality’s application to rescind the court order to pay Milowo the R21-million was a vindictive move to force Milowo to incur unnecessary legal costs.
Milowo’s attorney, Lionel Trichardt, said they would attach bank accounts if need be.
“With the first 44 vehicles making R6-million this means the 67 might not make the needed money. Hence we will also attach the [municipal] bank accounts,” he said.
“The attitude of the municipality on the matter shows they do not have the interest of the community at heart.
“Service delivery will be affected by this as some of the vehicles are for service delivery,” he said.
Enoch Mgijima municipality spokesman Fundile Feketshane did not respond to questions sent to him yesterday.
Municipal bank accounts may have to be attached
Image: Getty Images
A second auction of Enoch Mgijima municipality’s assets is set down for July 27.
In a further potentially lethal blow to service delivery, if the auction does not hit the target the sheriff of the court might even be instructed to attach the Enoch Mgijima municipality’s bank accounts.
At this stage the sheriff, Jenny Coetzer, is under instruction to auction a further 67 vehicles and 13 other items, including fridges and microwaves.
The first auction, held on June 1, resulted in 44 municipal vehicles, including TLBs, graders and bakkies, being sold.
This was to try and repay the R21-million debt the municipality had owed Milowo Trading Enterprise for six years for the construction of a community hall in Sterkstroom.
On the inventory for the latest auction are 15 trucks, six bakkies, concrete mixers, a landfill compactor and four tractors.
Enoch Mgijima needs to find R14-million to settle its debt with Milowo.
The first auction only raised R6.5-million.
This was after a last-gasp attempt to get the Grahamstown High Court to stop it was rejected by Judge Ndumiso Jaji.
He found that the municipality’s application to rescind the court order to pay Milowo the R21-million was a vindictive move to force Milowo to incur unnecessary legal costs.
Milowo’s attorney, Lionel Trichardt, said they would attach bank accounts if need be.
“With the first 44 vehicles making R6-million this means the 67 might not make the needed money. Hence we will also attach the [municipal] bank accounts,” he said.
“The attitude of the municipality on the matter shows they do not have the interest of the community at heart.
“Service delivery will be affected by this as some of the vehicles are for service delivery,” he said.
Enoch Mgijima municipality spokesman Fundile Feketshane did not respond to questions sent to him yesterday.
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