The Democratic Alliance (DA) in Msukaligwa has called on the Special Investigating Unit (SIU) to investigate a controversial reservoir deal involving the Msukaligwa Local Municipality.
Image: Msukaligwa Local Municipality
The DA alleges that the municipality sold land containing a strategic water reservoir before leasing it back at a reported cost of approximately R800 000 per month. The party claims the municipality later defaulted on the lease payments, with the businessman now seeking R247 million through the courts. DA councillor Johannes Scholtz said municipal assets, including a computer server reportedly valued at more than R50 million, could be attached if the claim succeeds.
“One of the most important things that is going to be attached in this legal dispute is our server. If the server is taken — it is valued at more than R50 million — it poses a threat that the municipality of Msukaligwa can collapse in totality, and that’s one of our major concerns. That is why the DA is advocating and why we asked the SIU nationally to investigate this — whether the municipality was at fault or the businessman was at fault — but the taxpayers need answers,” Scholtz says.
Msukaligwa Executive Mayor Alderman MP Nkosi confirmed the municipality is aware of the legal proceedings but declined to comment as the matter is before the courts. She said council adopted a resolution on 4 June and that the municipality intends to protect its assets. At this stage, the SIU has not announced an investigation, with the DA's request being the latest development.