Court orders attachment of Madibeng bank account

The North Gauteng High Court in Pretoria on Tuesday granted the City of Tshwane permission to attach the bank account of Madibeng Local Municipality after it failed to pay its R258 million debt to Tshwane.

The City of Tshwane filed a court application to attach Madibeng Local Municipality’s bank account after the municipality failed to honour payment terms for its multimillion-rand bulk water supply debt. Madibeng Local Municipality did not oppose the City of Tshwane’s application.
“The attachment of Madibeng Local Municipality’s bank account will enable the City to recoup the funds that we are owed, and this should assist the City to pay its creditors, like Rand Water, from which the City gets its bulk water supply,” Tshwane spokesperson, Sipho Stuurman said.
Madibeng Local Municipality now owes Tshwane R258 million for its unpaid bulk water account.
In August 2021, the two municipalities entered into a payment arrangement in terms of which Madibeng Local Municipality would settle its account in instalments over a specific payment period, but it failed to honour its commitment.
At the time the agreement was entered into, Madibeng Local Municipality’s debt stood at R243 million. The City of Tshwane was then forced to restrict the municipality’s water by 50%.
“The City has tried on numerous occasions to persuade Madibeng Local Municipality to do the right thing, but our efforts seemed to have fallen on deaf ears. The City’s court application was a last-ditch effort aimed at enforcing the settlement of Madibeng Local Municipality’s debt by attaching their bank account,” Tshwane said earlier.
“The Madibeng municipality has continuously failed to attend to its payment obligations and the city is taking a zero-tolerance approach towards outstanding debtors,” Stuurman said.
Kormorant is waiting for a response from the Madibeng Local Municipality