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    Monday, 10 September 2018

    Gwanda RDC's $5m debt goes to Supreme Court



    SIPHATHISIWE MATHAMBO

    GWANDA – Gwanda Rural District Council has appealed to the Supreme Court in a bid to quash a $5m claim slapped against it by a Safari operator.
    The local authority argues that the debt brought against it by Lourens Botha was unfairly arrived at by the arbitrator and the High Court Judge because they may have conflict of interest.
    Lourens Botha, a safari operator who was in a joint venture with Gwanda RDC is claiming $5 507 980,00 compensation for the infrastructure he developed after the local authority terminated the contract because council was not realising revenue from the venture.
    The council first appealed to the High Court against the damages claimed by Botha. However, Justice Mathonsi ruled in favour of Botha leaving the council in a serious debt that might lead to the demise of the council.
    Speaking at a special full council meeting held early in July the council auditor Butholenkosi Ncube indicated that if the council properties were to be attached it means that the local authority is going to be dysfunctional and probably close as the total value of it's properties may not match the demanded amount.

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