The ANC-run eThekwini municipality in KwaZulu-Natal is facing the prospect of being sued for allegedly breaching an agreement with an event organising company.
The municipality allegedly entered into an agreement with Ezombuso Group, a company owned by Sibongiseni Jaca, to sponsor the hugely popular 503 music festival.
The festival was originally held in KwaMashu to promote township tourism in the INK (Inanda, Ntuzuma, KwaMashu) zone, townships in the northern side of Durban.
As part of the agreement inked in 2022, the municipality was to fund several aspects of the events to the tune of R600 000 for three consecutive years. The funding would only be released after the event has been held and evidence provided to the municipality.
However, the municipality has failed to honour the agreement and Jaca is fuming. He has unleashed his lawyers on the municipality to demand the payment.
If the municipality fails to pay, it faces the prospect of being dragged to court. It appears in the letter that the dispute arose after the event was moved out of KwaMashu and held at Mojos in Chesterville, a township just outside Durban.
“In terms of clause 6.7.4, the change of venue necessitated an addendum. To date, this addendum has not been signed by the Municipality, a period of about 8 months after the Event. A consequence of this refusal to sign is that the Event Organiser has not be paid as per 5.1 of the MOA.
“There has been no tangible reason advanced for the refusal to sign the addendum and for not making payment. This refusal to sign the addendum and to pay the Event Organiser amounts to a blatant breach of the MOA and an absolute disregard to the terms of the MOA and accordingly, in terms of clause 13 of the MOA, the Event Organiser gives the Municipality 10 days to remedy the breach,” reads the letter that has been sent to the municipality dated 05 December 2024.
The municipality was then told to honour the agreement.
“Your failure to make payment as aforesaid has had grave implications on our client’s financial sustainability including payment of its service providers, as such our instructions are to take further steps to enforce the existing agreement between the parties and to pursue damages claim against you unless payment is received as claimed.
“We have attached a copy of the invoice herein for ease of reference and banking details for payment. In the interim and pending your response hereto, all of our client’s rights remain strictly reserved,” further reads the letter.
The municipality is yet to comment. Its comment will be added as soon as it is received.
