Poultry producer Astral Foods has obtained a High Court order against government and the National Treasury over the nondelivery of basic water and electricity supply services within the Lekwa (Standerton) municipality.
In terms of the Order issued on April 12, government will be required to intervene in the Lekwa municipality and, together with Treasury, prepare a financial recovery plan, as contemplated in the Municipal Finance Management Act.
The order also provides for Astral to approach the court again for further relief, if it is of the view that the financial recovery plan is not being implemented.
Astral says it is hopeful that this will not be necessary and that the parties will instead work together to turn the situation around in the interests of all stakeholders.
“We confirm our full support to government and Treasury and look forward to cooperating further in the interests of resolving the very serious issues currently being faced by the Lekwa municipality, and the impact that this is having on our operations and the community living and working in the area,” says Astral CEO Chris Schutte.
The impasse with the municipality with regard to water and electricity supply has had a major disruptive impact on Astral’s operations within Standerton, and has also negatively impacted on people living in the town and surrounding areas.
"The poor service delivery from the Lekwa municipality is untenable and Astral decided to take extraordinary steps in launching legal proceedings against the provincial and national government to hold them accountable for the failures in municipal service delivery in Standerton," the company says.