HIGH COURT JUDGEMENT: Ditsobotla Municipality ordered to pay R7,518,171.22

north west high court

Following a payment dispute over emergency electrical repairs, the Mahikeng High Court has ordered Ditsobotla Local Municipality to pay Kwende Construction CC R7,518,171.22 plus interest within 14 days. Ditsobotla’s urgent application to stop Kwende from interfering with its electrical infrastructure and Kwende’s counter-application to be paid for emergency electrical repair services after the municipality’s electricity supply completely collapsed were both resolved by the judgment, which was handed down on July 15, 2025.

On November 7, 2023, Ditsobotla legitimately hired Kwende Construction to handle emergency repairs in six areas where the power went out. On December 22, 2023, the municipality made a partial payment of R1 million toward the agreed-upon contract price of roughly R7.7 million. Ditsobotla signed a written Acknowledgment of Debt and Repayment Agreement that same day, clearly attesting to the over R7.3 million in outstanding debt and recognizing adherence to all internal procedures and procurement laws in light of the emergency situation.

To stop Kwende from allegedly threatening to interfere with municipal infrastructure, the municipality requested a court interdict rather than paying the outstanding balance. Kwende denied making any such threats and promised to pursue legal action instead of using self-help techniques. According to the Certificate of Completion and Compliance that the municipality issued on December 17, 2023, the court determined that Kwende had properly finished the contract by December 13, 2023.

The main points of contention in Ditsobotla’s challenge were that the procurement procedure was illegal and irregular. However, the court maintained Kwende’s argument that the emergency procurement was legitimate and appropriately permitted in accordance with the applicable regulations and the Municipal Financial Management Act. In addition to ordering prompt payment of the outstanding balance with interest calculated from January 31, 2024, until full payment, the court dismissed Ditsobotla’s application with costs on the attorney and client scale.

This decision highlights the court’s acceptance of legitimate departures from procurement regulations in times of emergency and upholds the contractual and legal duties resulting from emergency municipal services. In order to prevent further legal repercussions, the municipality is now legally required to pay off the debt within the allotted 14 days.

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