Court reserves judgment on "staggering" multimillion-rand claim against eThekwini Municipality

The judgment in a multimillion rand claim against the eThekwini Municipality by a businessman and former service provider to the city has been reserved following the conclusion of closing arguments at the High Court in Durban on Monday.

Siyabonga Xulu, Chief Executive Officer of Solbeth Protection and Risk Management is demanding a staggering settlement of R413 million including unpaid invoices and accrued interest from eThekwini municipality. According to him, his claims pertains to services he rendered to the municipality.

Xulu alleged that the municipality refused to pay for the critical security services his company provided to senior officials, including former city manager Sipho Nzuza, dating back to 2019.

However, the case is marked by significant factual disputes and ongoing litigation surrounding the same cause of action. These complexities have raised critical questions regarding the validity and merit of Xulu's claims.

The saga traces back to December 2021 when Xulu initiated his action against the municipality, stemming from a purported agreement signed on 23 January 2019 with the former municipal manager, Sipho Nzuza.

The agreement was intended to secure services, including surveillance and analysis of crucial information deemed vital for municipal operations.

Xulu contends that the nature of security threats necessitated an extension of his services beyond the initially contracted eight month period, leading to dues accumulating to R12,947,748.51 by March 2020 and an additional R28,731,221.65 by September 2020.

However, the municipality has countered with documented responses asserting that Xulu failed to provide legitimate evidence for the services he claims to have rendered, leading to their refusal to settle the bill.

As the court reviewed the case, it became evident that deeper complexities were at play, with significant factual disputes surfacing such as the existence of a contract between the parties from October 2019 to June 2025, whether Xulu delivered any claimed services during that period, and the foundational basis of his claim's calculations.

In court proceedings, the municipality raised procedural concerns, arguing that Xulu had acknowledged significant disputes prior to launching his new motion.

His actions, they contended, could be seen as an attempt to bypass legal protocols.

“As an advocate, Mr Xulu should have recognised the gravity of these disputes,” stated Mbuso Mbhele, the municipality's legal representatives.

The urgency of Xulu's application has also been met with scepticism, with the municipality suggesting that the timing of the claim, coinciding with ongoing litigation, raises concerns of potential abuse of the legal process.

In his founding affidavit, Xulu escalated his demand, ultimately seeking to compel the municipality to pay a formidable R188 million, along with interest calculated at the legal rate of 11.00% from the date of service of this application through to settlement for services rendered from October 2020 to June 2025.

To substantiate his claims, Xulu pointed out that as far back as 2018, he was introduced to Nzuza by Mbuso Ngcobo, the then Ethekwini's Head of the City Integrity and Investigating Unit, for urgent services required due to threats directed at both Nzuza and his aide, Thembelihle Hadebe.

Xulu asserts that he was tasked by Nzuza to conduct security sweeps at their offices and homes, uncovering various surveillance devices.

Amid these developments, the municipality remains resolute, expressing that Xulu's claims reflect a misunderstanding of the legal process rather than a legitimate demand for payment.

Speaking with the publication early last year, Xulu said the fallout has been devastating for his business.

His lawyer, Theyagaraj Chetty of Theyagaraj Chetty Attorneys, told the Daily News at the time that the city was weaponising the legal system, dragging the matter through the courts while relying on public funds, leaving Xulu to cover all legal expenses himself.

“It’s a disgrace. The city is using taxpayers’ money to fight a man who protected their officials. Meanwhile, my client is left struggling to cover his business and personal expenses,” said Chetty.

“Solbeth is a major company, and what the city has done has had a knock-on effect on his business.”

Chetty also slammed the court delays, saying the city benefits from a legal system that cannot offer Xulu timely justice. “You can’t even get a court date soon. That delay plays directly into the city’s hands while my client suffers.”

At the time, Municipal spokesperson Gugu Sisilana defended the city’s actions, saying: “The Municipality was entitled to legally defend itself against unclear claims in order to protect taxpayers’ money. Any legal action taken is in the best interests of the public.”

Xulu remained emphatic that his claim was not only clear, it’s fully justified and backed by documentation.

“I have got all the documents to prove that I did work for the city and was authorised to do that. It is a shame because the city officials are benefitting from something they are not paying for. My equipment is there (city).”

The Durban businessman had also approached the Office of the President, complaining about not being paid by the eThekwini Municipality for his security services.

Xulu, had claimed that his requests for payment has been ignored by municipal officials, especially City Manager Musa Mbhele.

Xulu said he had approached a number of officials including those in the portfolio committees, provincial treasury, and Cooperative Governance and Traditional Affairs (Cogta).

He further stated that his last resort at the time was the call to the Office of the President.

The court judgement was reserved on the matter, on Monday by the Durban High Court.