The uThukela District Municipality has confirmed that its bank accounts have been frozen following legal action instituted by RASP Consultants CC.
The municipality, which administers Ladysmith, Estcourt, and Bergville, stated that the attachment stems from an ongoing dispute relating to unpaid invoices.
In an official statement issued by the Municipality’s Communications Unit, it noted:
“The relevant provincial departments, including COGTA and Provincial Treasury, have been formally advised. A Special EXCO meeting and a Special Council sitting were convened Tuesday, 17 February 2026 to formally notify Council of the developments and the steps being taken.”
The Municipality further indicated that it intends approaching the court on an urgent basis to seek a stay of execution of the order. It appealed for calm, assuring residents and stakeholders that steps are being taken to maintain continuity of service delivery.
“No further comment will be made at this stage,” the Communications Unit concluded.
The matter forms part of a long-running financial dispute between uThukela District Municipality and RASP Consultants CC, a firm operating in the water sector under the name Vivah Technologies.
Financial records dating back to 2019 reflect summonses issued in relation to unpaid services, including a R65,857 claim for work allegedly rendered without complete documentation. Over subsequent years, broader creditor debt at the municipality has been reported at between R800 million and R1 billion, with RASP listed among significant creditors at various stages.
According to the municipality’s 2024 audited financial statements, RASP’s claims included approximately R15.8 million relating to refurbishment work at the Ladysmith Water Treatment Works and R6.756 million for work at the Ezakheni plant. These amounts were recorded as contingent liabilities pending resolution.
In October 2023, RASP secured a court order attaching municipal assets, including bank accounts, in relation to a debt of approximately R15 million plus interest.
That action temporarily affected municipal financial operations.
In early 2025, a Section 106 investigation was initiated by provincial authorities. The investigation examined procurement processes linked to contracts awarded to RASP, including allegations that certain services were rendered without proper purchase orders or award letters.
The probe reportedly recommended blacklisting the firm. In an official media statement issued on 1 April 2025, the municipality confirmed that RASP had been blacklisted, and that no further work or payments would be processed.
Despite this, legal disputes between the parties continued.
In October 2025, the matter culminated in a High Court settlement outlining a repayment plan linked to an alleged R137 million agreement reportedly entered into without formal council approval. The repayment plan required structured instalments.
According to reports, the municipality did not make a scheduled instalment in December 2025, which triggered an acceleration clause and resulted in additional interest being applied. This ultimately led to the present attachment of bank accounts.
Furthermore, the municipality’s financial strain has been documented in multiple budget reports. Creditor debt has hovered between R800 million and R1 billion in recent years. Consumer debt is reported to exceed R1 billion, alongside ongoing concerns regarding collection rates and bad debt write-offs.
uThukela District Municipality was placed under Section 139 administration, which was lifted in September 2025.
Political parties have since reacted to the latest developments. The DA has called for accountability from senior municipal officials, while the ANC has described the situation as avoidable and urged intervention from CoGTA and National Treasury.
As of 22 February 2026, no new formal provincial intervention has been announced.
The municipality has indicated that it will seek urgent court relief to restore access to its bank accounts. The outcome of that application will determine whether normal financial operations can resume in the short term.
The situation remains fluid, and further developments are expected as legal processes unfold.
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One Response
Really sad if the right people were put into the right positions from the beginning,,, from 1994 – to date political parties put people into positions for there own benefits. Corruption was the biggest downfall. Reap what you sow stop with the excuses and the blaming game’s.