Durban - Durban lawyer, Sithembelo Ralph Mhlanga, who was recently arrested and later released on bail with suspended Mhlathuze Water CEO, Mthokozisi Duze and KZN director-general, Dr Nonhlanhla Mkhize, is suing the mayor of the uMngeni (Howick) local municipality, Chris Pappas for R10 million.
Mhlanga was arrested for alleged corruption at Mhlathuze water where it is alleged that his law firm scored tenders at inflated prices and later paid bribes to Duze and other officials of the water entity based in Richards Bay.
In his legal action against Pappas, the lawyer claims that the uMngeni Mayor injured the good name of his law firm, Mhlanga Inc Attorneys, when he revealed to the media it was being probed for unethical conduct.
The probe is regarding its billing for legal work undertaken for the municipality while it was under the governance of the ANC which was lost power in November last year.
In the statement, Pappas said: The preliminary investigation has revealed that Mhlanga Inc, has seriously overcharged the municipality and has taken advantage of a time bound and serious matter that was faced by the municipality at the time.
"Introductory evidence indicates that uMngeni Municipality could have been overbilled by up to three times as much as the industry accepted rates on a number of line items."
UPDATE: Lawyer Sithembelo Ralph Mhlanga who was arrested with suspended Mhlathuze water CEO, Mthokozisi Duze and KZN DG, Dr Nonhlanhla Mkhize is suing the mayor of Umngeni municipality, Chris Pappas for R10 million. He claims that Pappas injured the name of his law firm when
— Sihle Mavuso (@ZANewsFlash) October 11, 2022
In a letter of demand sent to Pappas on Monday, Mhlanga claimed that the statement implied that his law firm had engaged in conduct which could be interpreted as unlawful.
The legal work Mhlanga did was in relation to a report by the Special Investigating Unit (SIU) which implicated former municipal manager, Thembeka Cibane.
Mhlanga, through his law firm, said following the delivery of the report, and after negotiations with the municipality, a fee of R1 360 450 (Incl VAT) was agreed to and paid.
This figure was constituted by professional and reasonable hourly rates as follows, R3500 for Mr Mhlanga, R2000 for an associate, and R1500 for a candidate attorney.
The letter added that in October 2021, the council authorised the then mayor to appoint the evidence leader pursuant to the recommendations contained in the Mhlanga report.
"Charges were drafted and served on Ms Cibane and the hearing commenced. Suffice to mention that Mr Mhlanga as an independent investigator was the chief witness in the disciplinary enquiry against a fee.
He stressed that professional fees for all work done, premised on agreed fee structures, were ultimately paid.
Nhalanga, said: “The media statement was published without any conclusive investigative report/process which properly and objectively considered the norms applied in the attorneys' profession in respect of, and an independent assessment of the reasonableness of, the fees charged.
“The allegations conveyed that Mhlanga Inc: is unethical, unprofessional, dishonest and lacks integrity as a firm of attorneys;
“Engages in irregular and unlawful tactics in its recovery of fees for professional services rendered.
“Your conduct as aforementioned was disparaging, damaging to and defamatory of the good name and reputation of the firm.
“In light and as a result of your conduct above, Mhlanga Inc has suffered reputational damage and demand payment of the amount of R10 000 000 (Ten Million Rand).
“The demanded amount should be paid into our bank account by no later than 27 October 2022.”
Pappas said they were attending to Mhlanga’s letter.
“The uMngeni municipality will consider the accusations made by the company concerned. We will respond accordingly.”
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