Durban judge orders payback for security companies after city’s bill threat

The eThekwini Municipality has been ordered to pay punitive costs for its “high-handed” approach after six security companies were forced to go to court after the city attempted to short-change them, slashing 20% off their bills.

This, Durban high court judge Mahendra Chetty said, was seemingly an attempt at “financial strangulation” so the city could resort to emergency procurement measures, without proper tendering, to hire guards for municipal facilities.

Chetty, in his recent ruling, said the city’s contention that the companies had been “overcharging the city” with “obscenely high amounts” could not stand.

And he questioned why it had taken eight years for the city to question the contracts, saying it seemed opportunistic for it to only do so in a letter dated December 29 2025, when most people, including lawyers, were on leave.

Should the court not intervene, Chetty said, the security companies would have no option but to withdraw their services or face economic ruin.

“This would result in critical infrastructure of the municipality being unguarded and create precisely the emergency situation which would justify resort to a section 36 deviation (procurement) process, which the city has been yearning to carry out.”

The companies, Imvula Quality Protection, Excellerate Services, Vusa-Isizwe Security, Khuselani Security and Risk Management, Unitrade 1047 (trading as Isidingo Security Services) and Secureco Metsu, launched the court action after receiving the December letter informing them that they were to be paid according to the rates they charged in September 2017.

This was based on what the city said was an interpretation of a court order granted, by consent, in November 2017, in which a new procurement process was set aside on review.

The city in its December 2025 letter, claimed that that order had, in fact, “frozen” the rates and did not provide for any inflationary or statutory increases.

Without warning, and on the cusp of the New Year when most attorneys and counsel would have been on leave, an email was sent to the applicants at 9.56pm from acting city manager Sipho Cele

In August 2024, the city issued a request for guarding services under section 36 which allows for deviation from official procurement processes in emergency situations.

Various security companies opposed this and a consent order was made on December 11 2025, enforcing the status quo.

“Without warning, and on the cusp of the New Year when most attorneys and counsel would have been on leave, an email was sent to the applicants at 21h56 (9.56pm) from acting city manager Sipho Cele,” Chetty said.

The essence of it was that the city claimed it had “erroneously” paid increased rates from September 2017 and intended to recover these amounts.