28/10/2026
FOR IMMEDIATE RELEASE
28 October 2026
MEDIA STATEMENT
COURT CONFIRMS THAT RNM AND PUBLIC WORKS MUST PURSUE MEDIATION
The Ray Nkonyeni Local Municipality welcomes the Court's clarification of its order, and notes that the order granted 18 October 2026 has not been rescinded, reconsidered or set aside. Rather, the court has confirmed that the dispute between the parties must be resolved through the dispute-resolution mechanisms agreed upon by the parties and contemplated by cooperative governance principles including mediation and, if necessary, arbitration.
The Court's variation order does not determine the merits of the dispute. Instead, it reinforces the requirement that the parties engage constructively to resolve the issues relating to the cancellation of the Admiralty Reserve Property Management Agreement and the ownership of the disputed properties. The court has directed the parties to appoint a mediator and, should mediation fail, to refer the matter to arbitration.
Importantly, the Court has only varied the interim restraint in respect of six operational commercial facilities that had already been leased. This limited variation was granted to avoid prejudice to existing tenants and businesses operating from those premises while the dispute is being resolved. The variation therefore serves a practical purpose and should not be interpreted as an endorsement of the validity of the leases, which remains disputed by the Applicant.
The Court further safeguarded the interests of all parties by requiring that rental income generated from the affected properties be properly accounted for pending the outcome of the dispute. In practical terms, the revenue derived from these leases must be preserved and accounted for until the mediation and arbitration processes have been concluded and the rights of the parties finally determined.
The Municipality remains committed to the principles of cooperative governance and believes that the dispute should be resolved in accordance with the framework established by the Intergovernmental Relations Act, which encourages organs of state to resolve disputes through engagement and mediation before resorting to prolonged litigation.
We therefore call upon all stakeholders to respect the court process and allow the dispute-resolution mechanisms now directed by the court to run their course. The focus remains on achieving a lawful, fair and sustainable resolution that protects public assets, respects the rule of law and avoids unnecessary disruption to businesses and tenants operating from the affected properties. ENDS.
Issued by Ray Nkonyeni Municipality
For enquiries contact:
Mr Khetha Zulu
Municipal Manager
+27 39 688 2021/20 / +27 824504133
[email protected]
