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Council is is sued for R25m

By unknown | Apr 03, 2009 | COMMENTS [ 0 ]

Frank Maponya

Frank Maponya

The Bakwena Funeral Undertakers is suing the Aganang municipality in Limpopo for more than R25million for breach of agreement.

The funeral parlour has accused the municipality of terminating a lease agreement without a valid reason.

The municipality had concluded a lease agreement with the BFU on October 24 2004 for a period of 10 years. The BFU also had an option to renew the lease for another 10-year period, starting in 2014, at a rental escalation to be mutually agreed to by both parties.

But the municipality terminated the agreement on February 1 2005.

According to documents in Sowetan's possession, this constituted a breach of agreement as no consultation took place before the termination.

The BFU took the matter to the high court, claiming more than R25million for damages from the municipality.

According to the document, the municipality appointed Selelo Ramashilo to oppose the matter. Ramashilo, however, withdrew after the municipality's failure to comply with a court order which went against it.

The lease agreement bears the signature of former corporate services manager Mpho Moreroa, who was allegedly mandated by former municipal manager Stanley Langa, pictured , to represent the municipality.

According to the document, the two will be subpoenaed to testify when the case goes to trial.

Efforts to trace Langa and Moreroa drew a blank yesterday.

Municipal spokesperson Malesela Maubane confirmed yesterday that the BFU had instituted legal proceedings against them.

He said the municipality was not liable for the R25million.

"We are waiting for the court to rule on the matter," said Maubane.


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