The Grootfontein Town Council has been dragged to court by a solid waste disposal company, Frontier Multi Industries (FMI) for allegedly refusing to pay N$ 1.8 million due to the company.
According to documents filed in the Windhoek High Court, in November 2021 the council and FMI entered into an agreement for the solid waste company to provide solid waste and disposal services for a period of three years to the council.
The two also agreed that the council would make payments for the services,30 days after the invoices were submitted. FMI is claiming that the council failed to pay invoices between March and June 2022.
“An amount of N$ 1 698 595.80 is the total amount due on the outstanding invoices as of 30 June 2022. An amount of N$ 127 146.83 being the accrued interest as of 30 June 2022 calculated as per contract,” read the claim.
FMI is claiming that despite numerous attempts and legal representatives addressing a letter of demand to pay the outstanding money, the council ignored and refuses to settle the amount.
However, the council is claiming the agreement was unlawful as it was between suspended Chief Executive Officer Kisco Sinvula.
“The contract in question is unlawful and to this end, forms part of the conduct which led to the suspension of the CEO on the 24 March 2022, and further forms part of the charges of misconduct which were laid against the said Sinvula on 9 July 2022,” read the documents.
In May 2022, Sinvula approached the High Court for a review and set aside of the council’s decision to suspend him on 24 March 2022.
At the time of his suspension, he was furnished with a notice for a disciplinary hearing on 30 counts of misconduct.
These allegations range from insubordination, abuse of power, violations of the Local Authorities Act, violations of the Procurement Act, corruption, forgery, misleading and misrepresentation of facts, negligent trading, utterance and violations of the labour law, racketeering and the misuse of public funds.
Sinvula, through his lawyer James Diedericks, is adamant that his suspension was illegal, as council acted outside its powers.
FMI is being represented by FB Law Chambers while the council is being defended by Henry Shimutwikeni.