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Municipality handed over for "bad debt"

 

News  Date: 21 October 2005

 

Failure to pay an account caused the Makhado Municipality huge embarrassment this week.

On October 14, a notice of sale appeared in the Zoutpansberger, advertising the sale of one of Council’s trucks and a backactor on public auction in order to help pay off bad debt owed to a local small business, B&S Spares. The outstanding amount in question is said to be R28 000.

In the meantime, it came to light that financial problems were not the reason why the municipality had not paid the outstanding amount, but a dispute over the actual amount owed by them.

On October 12, the municipality negotiated with the legal representatives of B&S Spares and told them that the amount being claimed was R11 000 and not R28 000.

Council’s Director Corporate Services, Mr Peter Magwala, said this week that “the municipality is humiliated and embarrassed to find that a notice of sale appeared in the Zoutpansberger,, while negotiations were taking place between them and the legal representatives of B&S Spares.” He added that a cheque to the amount of R11 000 was to be paid to the legal representatives of B&S Spares on Tuesday.

 

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