Hospital wins claim

2019-02-01 16:09


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The developer of the Hilton Life Private Hospital has won a R13,1 million claim against the uMgungundlovu District Municipality over past sewage removal.

In addition, the municipality must also pay interest on the amount at the rate of two percent from May 2 last year to the date of payment.

The claim arises out of agreements between the municipality and developer Amaraka Investments 37, between October 2011 to February 2016.

It concerned the provision of bulk services and included sewage services for the interim infrastructure and for the supply of services relating to it.

In terms of the agreements, the municipality undertook to provide sufficient water capacity to meet the needs of the hospital. It was also supposed to construct a sewage treatment plant to meet the capacity of the hospital.

If the hospital was in operation before the completion of the plant, the developer was supposed to construct conservancy tanks to dispose of the sewage and the municipality was supposed to be responsible for their operation and maintenance.

Once the hospital was completed, it constructed these tanks.

The municipality, however, did not have enough vacuum tankers so the developers agreed to empty the tanks by contracting an external service provider. In return, the municipality had to reimburse the developer at the charge of R1 500 per load.

It was also agreed and recorded then that the municipality was already indebted to the developer for the removal to the tune of the R13,1 million.

The municipality then went to court and successfully had the agreements set aside. However, this did not affect the R13,1 million debt.

When the municipality did not pay it, the developer turned to court and has now won.

The attorney for the developer, Roderick Brent, said that the hospital has from April last year assumed the municipality’s responsibilities to remove the effluent generated by the hospital at its own cost.

Municipal spokesperson Brian Zuma said the municipality’s attorneys were studying the judgment to determine whether or not to apply for leave to appeal.

Read more on:    pietermaritzbrug  |  hospital

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