GCC terminates contracted law firms
Tsaone Basimanebotlhe | Tuesday June 21, 2016 16:07
“The major challenges that came from the contracts were lack of a monitoring system in place, excessive expenditure without mitigation, disproportionate mandate or instructions outsourced to the actual budget leading to over expenditure. The combined total paid to the law firms as terminatory fees was of P968,871.26 for work done as at then and contracts were terminated,” Thutlwe said.
He said on December 1 and 11, 2015, the legal office withdrew and ended the mandate instructed to the law firms in order to address the identified challenges.
“The two law firms agreed that the challenges so identified were prevalent and agreed to have the contracts terminated. Full reports and remittal of all council money was demanded.
Confirmation of actual work provided and paid for was conducted in the months of January and February 2016 per visits to the law firms,” he said.
On another issue, the mayor said the arbitration matter between GCC and Daisy Loo for loss of profit is now settled.
“The claimant withdrew the matter against the council at no further cost. Remittals are ongoing that is debt and costs collected and mandate in favour of the council at present total of P471,543.88 has been remitted back to council. Please note that new legal service providers are to be engaged after response from the law society vetting process is complete,” the mayor said.
Thutlwe urged council to be vigilant and closely monitor the contracts with legal providers to minimise costs.
On the issue of inefficient market stalls, the mayor said issues range from illegal occupancy and non-payment of rentals to the physical condition of the market stalls.
“The original purpose for availing such facilities was to promote informal sector growth through the provision of affordable operational space to citizen-owned SMMEs, which are operating within the city.
The objective of this undertaking was motivated by the need to promote growth of existing businesses as well as stimulating establishment of new enterprises,” he said.