Endumeni (Dundee) Municipality has been taken to court, after employing a new financial management systems company.
The Municipality held a Special Council Meeting on Tuesday, 28 March 2023, where it was confirmed that the municipal finance management systems company, CCG Systems, has taken the municipality to court, following the appointment of MunSoft in October 2022.
Reflecting on the case, the Endumeni Municipal Manager, Sthembiso Ntombela said that it should be highlighted that CCG Systems (Pty) Ltd’s contract expired in September 2022 and the municipality decided to extend their contract on a month-to-month basis.
“The municipality then appointed another service provider, MunSoft (Pty) Ltd, using the MFMA: SCM Regulation 32 as the municipality could not do without the financial system. Also, not having any financial system in place, would put the municipality on its knees,” said Ntombela.
It was then that the court order was secured by CCG Systems, stopping the Dundee Municipality from making use of the new service provider.
“The municipality will abide by the court order. In the event where the municipality was to not consider the terms of the court interdict, then it would be contempt of the court order. However, this will result in contravention of the Municipal Finance Management Act, No.56 of 2003; which states that municipalities should secure sound and sustainable management of financial affairs. The municipality would lose revenue, conditional grants, incur non-payment of goods and services, non-payment of Councillors and employees, delays in service delivery and all these could lead to community unrest due the inability of providing basic services,” explained Ntombela.
With that said, the Endumeni Council decided to leave no stone unturned in trying to resolve the matter as swiftly as possible and find the most amicable solution that would be of benefit to the community of Endumeni.
“Council will solicit advice from KZN Provincial Treasury on how best this situation can be resolved without putting a further strain on the already dented municipal finances. We would like to assure the community that this situation will be resolved in the most adequate and cost-effective manner and we will make sure that services rendered by the municipality will not be compromised,” said the Municipality’s Communications Unit.
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