City Manager blocks R230m claim: ‘Where is the paperwork?’
DURBAN — eThekwini City Manager Musa Mbhele has publicly challenged a multi-million-rand security claim, demanding formal documentation before any municipal funds are released to a private contractor. Speaking at a public discussion in Hillcrest over the weekend, Mbhele addressed allegations made by businessman Siyabonga Xulu, who claims the municipality owes him R44 million for protection services.
The dispute, which has escalated since Mbhele took office in July 2021, reached a boiling point when Xulu’s claims allegedly inflated to an astronomical R230 million. The matter has already seen legal action, with the Durban High Court recently dismissing an urgent application by Xulu. Judge Murray Pitman ruled that the application was an abuse of court processes, stating that material disputes of fact existed which could not be decided on papers alone. The court further protected ratepayers by issuing a punitive costs order against the businessman.
Mbhele detailed a series of unusual encounters, alleging that he was warned by a councillor that his phone was being monitored. He claimed that Xulu proposed using satellite technology to resolve these security concerns in exchange for significant payment. Mbhele told the audience that when he refused to authorise informal payments, the claimed debt began to inflate alarmingly, eventually reaching a purported R2 billion in verbal discussions.
The City Manager has maintained a steadfast position, insisting on verified supply chain documentation and a signed affidavit from his predecessor before any payment is considered. Mbhele noted that his own independent inquiry suggests the claims are not accurate. He challenged any individuals with evidence of wrongdoing to approach law enforcement, noting that unsubstantiated allegations continue to damage his professional reputation.
This standoff highlights the ongoing governance challenges within the eThekwini Metro as the administration attempts to tighten fiscal controls. The public interest in this matter remains high, given the significant amount of ratepayer money involved and the historical issues surrounding emergency procurement processes in the city.
The resolution of this dispute is viewed as a critical test for the municipality’s commitment to supply chain integrity. As the city works to restore stability and strengthen its administration, the demand for transparency in high-value contracts remains a priority for both business figures and the general public.
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