‘Show Me the Paperwork’: City Manager Challenges Multi-Million-Rand Security Services Claim

eThekwini City Manager Musa Mbhele took centre stage at Xubera’s Moments of Truth discussion in Hillcrest over the weekend, addressing a range of pressing concerns, including the municipality’s controversial payment delays to service providers.

The event was attended by ratepayers and prominent business figures, including Siyabonga Xulu, who publicly claimed that the city owed him R44 million for security services rendered.

Xulu’s allegations became a significant point of contention during the event, and Mbhele detailed the complicated legal and financial dispute surrounding the matter, which had reportedly been a topic of controversy since he assumed the city manager role in July 2021.

The businessman lodged an urgent High Court application in which he claimed that he rendered protection services to the municipality from October 2019 to September 2020 and was owed R41.7 million for work allegedly done during that period.

He sought a further R188.6 million for services allegedly rendered between 2020 and 2025, as well as R896,579.10 in interest from October 1, 2021.

According to Xulu, he had a third claim, which he described as being for “services rendered” leaving him with a cumulative claim of R230 million.

However, the Durban High Court dismissed the urgent application relating to the R230 million claim.

In dismissing the application, Judge Murray Pitman ruled that Xulu had abused court processes and that the city and its ratepayers should not bear the unreasonable costs arising from the application.

“There is no justifiable basis for this application to have been initiated as an urgent application. In addition, there are material disputes of fact which cannot be decided on the papers alone.

The applicant was aware of that fact before launching this application. Pursuing the matter as an application in the circumstances was irregular and unjustifiable.

The irregular manner in which the application was brought, and pursued, justifies a punitive costs order against the applicant. I say so because in my judgment, the respondent and the ratepayers of eThekwini, who fund the respondent significantly, should not be exposed to any of the unreasonable costs occasioned by the applicant arising out of this application,” Pitman ruled.

At the event, Mbhele recalled an encounter with a fellow councillor who warned him that he could become a target for surveillance and phone tapping.

“This councillor introduced me to a man (Xulu) at Oscar’s Restaurant who suggested that my phone was bugged, citing specific locations,” said Mbhele.

He described how Xulu proposed using satellite technology to resolve the alleged security issues in exchange for a considerable but unspecified amount of money.

After further engagements with Mbhele, Xulu allegedly claimed that the city’s outstanding debt to him had grown from R44 million to R2 billion. Mbhele said he remained steadfast in refusing to authorise payment.

“When I refused to make an informal payment, the amounts began to inflate alarmingly,” Mbhele said.

He said he insisted that supply chain documentation be produced before any payment could be considered.

“I requested formal proof of the work done, along with a signed affidavit from the former city manager.”

Mbhele said his own independent inquiry revealed that the payment claims made by Xulu were not accurate.

In response, Xulu told attendees that he had been in contact with Mbhele at unusual hours, around midnight, to arrange inspections of municipal vehicles involved in sweeping operations and security checks.

He produced what he described as friendly correspondence, which he claimed demonstrated the relationship he had with the city manager.

In support of his claim, Xulu read from an affidavit deposed by an admitted attorney who formerly served as the municipality’s senior manager of operations and support services in the office of the previous city manager from April 2017 until early 2020.

She stated that part of her role included authorising invoices for services rendered to the city manager’s office.

According to her account, towards the end of 2017 and into 2018, both she and the previous city manager became targets of severe security threats, including anonymous death threats, threatening text messages and surveillance by suspicious vehicles.

“These threats were directly tied to administrative decisions made by the city manager. Because the danger to their lives was immediate and active, they skipped traditional, lengthy procurement processes and instead appointed a security firm from a pre-approved panel of experts to mitigate the imminent risk.

The firm chosen was Solbeth Protection and Risk Management, selected for their speed and specialised technical capabilities,” Xulu said.

Mbhele responded by challenging anyone with serious allegations against him to submit evidence to law enforcement authorities.

“If there is substantive evidence against me, then justice must be served,” Mbhele said, adding that unsubstantiated allegations damaged his reputation.

Turning to his achievements, Mbhele said his focus since taking office had been on overcoming governance challenges and addressing issues inherited from previous administrations.

He reassured the audience that efforts were continuing to strengthen municipal administration and restore stability within the metro.

 

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