In September, OFM News reported that the High Court's local division in Johannesburg had attached the municipal bank account in favour of a Chinese company.

This attachment followed after a R492 million contract entered into in 2014 was declared irregular by the Auditor-General of South Africa.

On Monday, the High Court stated that the "default judgment was erroneously granted against the municipality", and if the court had full facts on the matter, it would have reached a different judgment.

In court, the municipality argued that the summons was not properly served, rendering proceedings null and void. Municipal labour relations officer, Makhosonke Sangweni, confirmed the court decision, adding returning the money to the municipality will help in terms of service delivery.

The municipality has been struggling to pay Eskom and Rand Water arrears of R994 million. Rand Water is currently restricting water supply by 20 percent, leaving many residents without water.

OFM News/Paila Chauke