AN auction of assets belonging to EMLM, following a claim by Siyahlutha trading due to the alleged non-payment of the former Lukhanji Municipality for the construction of RDP houses, has been averted.
The Rep reported today “Auction threat in spotlight” that Siyahlutha was claiming R5.9-million for houses built in 2005.
According to EMLM municipal manager Chris Magwangqana, the company later agreed to settle for payment of the initial debt of R1.7-million without the accrued interest.
In a statement yesterday, EMLM spokesman Gcobani Msindwana said the Grahamstown High Court had ordered a stay of execution regarding to the sale of the assets pending a review of the arbitration award on September 13 this year.
“Effectively the municipal assets will not be auctioned tomorrow.”
