Emfuleni rubbishes repossession claims

By Staff reporter Time of article published Aug 16, 2018

Share this article:

Emfuleni Municipality has denied allegations that services have come to a halt in the area because a company leasing them vehicles repossessed them.

Allegations are that a company that leased the vehicles, took them, wreaking havoc to department such as traffic, fire as well as water and sanitation and that people must not expect service delivery including officials attending to calls.
However, the municipality has poured cold water on those claims, saying those allegations were untrue.

The municipality's Stanely Gaba said all municipal vehicles were currently in their  possession and continue to work in attending to service delivery defects.  However, he said, the contract they had with the fleet provider ended after running its course and has not been renewed. He also said they discovered that the contract had been irregular.

"The contract ended in March this year and the municipality has agreed to release the affected vehicles in batches back to the provider over a period of three months, starting in September 2018. For the record, the municipality paid the service provider R7-million on Wednesday, 15th August 2018. The municipality had also discovered that the contract had been irregular and has since began a process to appoint a new fleet service provider."

The municipality, however, did not say why they had paid the money although they were aware that the contract was irregular.
The Organisation Undoing Tax Abuse (Outa)  said there was a dispute with regards to what was going on at the municipality. The organisation's Michael Holenstein he understood that the company had gone to the municipality, removed the keys from the vehicles but later returned them.

"Apparently they returned the keys to ensure that service delivery does not fail. There is also a contradiction here. The municipality just paid R7-million to the current service provider but are engaging a new provider...it makes no sense to me. They don't seem to know what of going in there themselves.

"As far as I know, services have totally collapsed in Emfuleni. The situation is dire and the municipality don't seem to have a solution," Holstein said.

Some media posts also alleged that Bidvest was the company that repossessed the vehicles. However, the company denied that it was the fleet provider.

Share this article: