Mahomed’s R83 million debt under scrutiny
On Friday, Mahomed entered the council chamber during a council meeting and demanded to know why his name had been mentioned before Parliament
Property mogul Asgar Ali Dawood Mahomed’s dramatic interruption of a Msunduzi Municipality council meeting has intensified scrutiny of the estimated R83 million he allegedly owes the City in unpaid municipal accounts, with questions being raised about how such a debt was allowed to accumulate while ordinary residents face service disconnections for far smaller arrears.
The debt figure relates only to accounts held in Mahomed’s personal capacity and excludes any municipal debt that may be linked to companies, trusts or other asset-holding entities associated with him.
The controversy stems from Msunduzi Municipality’s recent appearance before Parliament’s Standing Committee on Public Accounts (Scopa), where municipal Chief Financial Officer Nelisiwe Ngcobo identified Mahomed as one of the businesspeople allegedly owing the municipality substantial amounts in unpaid water and electricity accounts.
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On Friday, Mahomed entered the council chamber during a council meeting and demanded to know why his name had been mentioned before Parliament.
His appearance immediately sparked objections from ANC councillors, who pointed out that members of the public are not permitted to enter the council chamber or address council without authorisation.
IFP proportional representative councillor Shamieel Rahman Alliy and ANC Chief Whip Sandile Dlamini subsequently escorted Mahomed from the chamber. Several other councillors followed as proceedings were briefly disrupted.
Before leaving, Mahomed briefly interacted with councillors on the EFF benches.
The incident prompted the municipality to seek legal advice on whether Mahomed’s actions breached the Rules of Order governing council proceedings. Municipal spokesperson Ntobeko Mkhize confirmed that the matter had been referred for legal consideration.
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“It is important to place on record that the Rules of Order governing council proceedings do not permit members of the public to address council without prior approval, invitation or authorisation from the Speaker.
“The municipality views any disruption of council proceedings in a serious light. The matter has accordingly been referred for legal consideration and advice regarding any further appropriate action,” said Mkhize.
The debt issue also drew the attention of ACDP councillor Rienus Niemand, who questioned how Mahomed’s account was allowed to escalate to millions of rands while residents often have services disconnected for relatively minor arrears.
“Residents who have had their services disconnected for owing relatively small amounts are still required to pay reconnection fees once they settle their arrears. That is the main issue that should be addressed,” he said.
Niemand confirmed that he has referred the matter to the Special Investigating Unit (SIU) for investigation.
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The council disruption later became the subject of controversy after a letter circulated on social media alleging that Mahomed had publicly claimed he paid bribes to Mayor Mzimkhulu Thebolla and Deputy Mayor Mxolisi Mkhize to resolve issues relating to his municipal accounts.
However, a Witness reporter present throughout the council meeting did not hear Mahomed make any such allegations. Niemand, who was seated near the entrance to the chamber where Mahomed stood during the disruption, said he also did not hear the alleged remarks.
Councillors from the IFP, DA, EFF and ACDP seated closest to Mahomed similarly said they did not hear him accuse either the mayor or deputy mayor of accepting bribes.
No audio or video evidence has emerged showing Mahomed making the statements attributed to him in the circulating letter.
Mahomed strongly denied making the allegations. “I went in there only wanting to know why the council had dragged my name before Parliament,” he said.
“I want to put it on record that at no point did I make such utterances about the mayor or his deputy.”
Mayor Thebolla dismissed the allegations as unfounded and mischievous.
I heard about these allegations, but the man did not utter such accusations. Council meetings are streamed live on Facebook, so anyone with proof of such utterances is welcome to come forward.
Thebolla said that while he did not condone Mahomed’s conduct in entering the council chamber, he had not heard him accuse either the mayor or deputy mayor of accepting bribes.
He added that the Speaker, after consulting council rules and the municipality’s legal department, would determine whether any action should be taken against Mahomed for disrupting proceedings.
Deputy Mayor Mkhize also rejected the allegations, describing them as fabricated and reckless.