Entire Document - Chris Hani District Municipality

50. CONTINGENT LIABILITIES2012 2011RR50.1 Guarantees: 20 000 20 000(i) Telkom: 20 000 20 000The municipality issued a bank guarantee in favour of the South African Post OfficeLimited to cover the municipality’s postal account.50.2 Court Proceedings: 3 362 662 3 312 662(i) Arrear Pension Contributions: 322 950 322 950Chapter 4The Municipal Employees Pension Fund brought an action against the municipalityfor outstanding payment of contributions to the Fund in respect of councillors. Theparticulars of the claim are still in process of being amended. A trial date is yet to beobtained and the outcome of the action is still uncertain. The municipality’s attorneysadvised that the municipality settles for economic reasons. Subsequently, an offer ofR20 000 was made towards full and final settlement. The Fund declined and claimsthe whole outstanding amount with interest and costs.(ii) Outstanding Payments: 2 501 111 2 501 111Reticulation Design Project Services was appointed by the municipality for theupgrading of streets and storm water drainage, and the building of VIP toilets. RDPServices has instituted action against the municipality for the recovery of paymentsalledgedly not made. A trial date has been set for 29 August 2011, but the matterwas was again postponed. The claimant served notice of intention to amend thetrial particulars, but has failed to date to do so. The outcome of the case is stilluncertain.(iii) Services Rendered: 488 601 488 601Frikton CC is claiming from the municipality in respect of a cession in their favour forservices rendered as sub-contractor to Ikamva Civils. A trial date has been set for 30November 2010, but the matter was removed by agreement due to unavailability ofcounsel. A new trial date is awaited and the outcome of the case is still uncertain.(iv) Dispute regarding Fire Trucks: 50 000 --A dispute has arisen over Fire Trucks supplied to the municipality by MasakheDie Cast. Masakhe Die Cast did not fulfil all its obligations. A letter of demand was213