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Council to face court over debt

By Frank Maponya | Nov 23, 2009 | COMMENTS [ 0 ]

THE Polokwane municipality in Limpopo owes more than R28million to a developer who was awarded a tender to construct a convention centre.

A dossier, which is in the possession of Sowetan, indicates that the municipality owes the developer R28194208,97 for professional fees.

Matrix, the company contracted to build the Polokwane Convention Centre, took the matter to court to recover the money.

The company resorted to court action after the municipality failed to pay for a period of three years.

Municipality spokesperson Simon Mokoatedi yesterday confirmed that the municipality owed the company.

"We were only acting as an implementing agency and nothing else," Mokoatedi said.

The company has also written to President Jacob Zuma asking him to intervene.

The letter reads in part: "We have now resorted to issuing summons to the Polokwane municipality with a view to taking summary judgment to recover the fees.

"The negative publicity this will cause will be an embarrassment."

Mokoatedi said they were aware of the matter and that they were awaiting the summons.


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