Appeal court sets aside Kgetlengrivier's Magalies Water appointment
The Supreme Court of Appeal found the Kgetlengrivier municipality's decision to appoint Magalies Water to run its water and sanitation services irrational. It overturned a North West High Court ruling and ruled for a community organisation.
Kgetlengrivier Concerned Citizens brought the case. The court ruled in its favour on 2 November and also rejected the high court's costs order against the group. The projected cost of the Magalies Water appointment was R37.5 million.
Acting Judge of Appeal Gloria Mjali wrote the first judgment. She found that the municipality did not explain why Magalies Water was fit for the job, although it had earlier ended the utility's contract for poor performance. She said the municipality ignored evidence of incompetence, which made the whole process irrational.
The municipality had stated under oath on 5 January 2021 that Magalies Water failed to perform. It relied on an operations and maintenance agreement dated 27 May 2020. Judge of Appeal Elias Matojane wrote a separate judgment. He said emergency circumstances do not allow municipalities to ignore the constitution.
Key facts
- Who
- Kgetlengrivier Concerned Citizens (community organisation that brought the case, ruled in favour of); Kgetlengrivier municipality (municipality whose appointment of Magalies Water was set aside); Magalies Water (water utility reappointed by the municipality and previously fired for poor…); Gloria Mjali (acting judge of appeal, writing for the first judgment)
- What
- The SCA ruled in favour of Kgetlengrivier Concerned Citizens, overturning an earlier North West High Court ruling, after finding the municipality failed to explain why Magalies Water, which it had previously terminated for poor performance, was fit for the job. The court also rejected the high court's costs order against the community organisation.
- When
- 2 November 2026
- Where
- Kgetlengrivier, Koster, Elands rivers
- Status
- Reported