GRDM misfire: Court rejects R6.7m claim

Update

GARDEN ROUTE NEWS - A high court judgment in favour of six officials of the Garden Route District Municipality (GRDM) was kept neatly under wraps for the past week.

But this week word got out that GRDM came second in its case against six of its employees: Municipal Manager Monde Stratu, Executive Manager of Corporate Services Trix Holtzhausen, Executive Manager of Community Services Clive Africa, Executive Manager of Roads Services John Daniels, CFO Jan-Willem de Jager and Executive Manager of Planning and Economic Development Luisanda Menze.

The six were sued for over R6.7m by the GRDM for alleged overpayment in salaries from 2017 to 2022. Millers Inc represented the plaintiff.

These employees objected to the summons on various grounds, among others that there was no case to be made against them. The court upheld these main objections.

The GRDM argued that its case rested entirely on Article 32 of the Municipal Finance Management Act - an official can be held personally responsible for fruitless and wasteful expenditure.

The court, however, stated that a case has not been made out by the GRDM in terms of Section 32, and gave it 20 days to change the reasons stated for suing its employees. Failing to do that, the case may be struck from the roll.

The GRDM was also ordered to pay the costs of the case that was argued on 28 July, and judgment was given last Tuesday, 29 July.

The employees' attorney, Pieter van der Merwe, says he is glad that his clients' arguments were vindicated.

"Section 32 does not apply and the GRDM was forewarned of these facts. My clients have done nothing wrong. They rendered their services in terms of their employment agreements and got paid. They deny any irregularity. Insofar as the GRDM wants to raise opportunistic arguments of any irregularities, they must clearly state the facts and comply with Section 32. They know they can't, hence our objections being upheld.

"This will now cost the GRDM possibly in excess of R100 000."

Municipal Manager Monde Stratu Photo: GRDM

Twenty days

Through its head of communications, Herman Pieters, the GRDM says the case has not been dismissed.

"The GRDM has 20 days to amend its causes of complaint. As the matter remains sub judice, we are not in a position to comment further at this stage."

In his response, the Minister of Local Government, Anton Bredell, says he noted the court decision that the defendants' exceptions to the municipality's pleadings were upheld.

"The municipality has been cautioned to comply with the court order and fix its pleadings within the afforded 20 days, failing which the Provincial Government will be forced to consider alternative intervention options in terms of Section 139 of the Constitution of the Republic of South Africa, 1996."

Minister Anton Bredell

Still suspended

In addition, at the end of May, two top officials, defendants in this case, were suspended due to an entirely different matter.

Stratu and Daniels were suspended following allegations of possible misconduct related to the Western Cape Provincial Government's Department of Infrastructure's Roads Agency function and have been receiving full pay since their suspension 10 weeks ago.

Van der Merwe says in spite of an independent external investigation report tabled in Council revealing no reasons to uphold this suspension, a recent majority vote in Council supported further disciplinary action against both Stratu and Daniels.

Pieters says this remains an internal matter of the municipality, and as such, the details are confidential. "It must, however, be noted that the report contained several findings that informed the next steps resolved by the GRDM Council."

What these steps entail, has not been revealed.

Van der Merwe, who also represents Stratu in this case, says he warned the councillors that they would be held responsible in their personal capacity for their decision. "The independent investigation showed there was absolutely no reason to suspend my client," says Van der Merwe.

"I want to know where, in the 100-page document, are the reasons for his suspension. I am still waiting for a reply from GRDM's attorney.

"Like in the action, we believe our client will be vindicated and we reserve our right to keep those officials personally liable for the damage our client has suffered."

Mayor Andrew Stroebel