Lephondo v Dihlabeng Local Municipality (7493/2008)
Lephondo v Dihlabeng Local Municipality (7493/2008) [2009] ZAFSHC 99 (25 June 2009)
The court held that section 14 of the Local Government: Municipal Finance Management Act requires a municipal council to consider and approve the disposal of capital assets in a public meeting before any transfer or disposal can occur. The sale agreement between the applicant and respondent was concluded without such council approval and did not reference compliance with section 14. As a result, the agreement constituted a contract to commit an act made unlawful by statute and was therefore void. The power of attorney authorising transfer pursuant to the invalid agreement was likewise void. T…
Source excerpt
- Municipal Asset Disposal
- Alienation Of Land
- Statutory Invalidity
- Local Government Finance Management
- Contract Void For Illegality