…demands reinstatement of agreement, payment of outstanding fees
Seithati Motsoeneng
THE legal battle over the multi-million maloti Tšosane dumpsite rehabilitation project has escalated, with SSL Joint Venture (SSL JV) giving the Maseru City Council (MCC) five days to reverse its decision to terminate the contract or face further legal action.
The ultimatum follows MCC’s decision to cancel the consultancy contract for the Tšosane dumpsite stabilisation and rehabilitation project, as well as the design and long-term environmental management of the proposed alternative, Tšoeneng sanitary landfill.
In a letter dated 19 June 2026, MCC informed SSL JV that it had concluded the contract was invalid because it contravened legislation governing contracts of that nature.
“Having considered your representations and the facts in their totality, we have come to a decision that the contract could not be legally entered into as it contravenes legislative provisions applicable to contracts of this nature. Therefore, the contract is hereby terminated,” the Council stated.
MCC said it was prepared to settle payments for work already completed and invited SSL JV to engage on resolving any outstanding issues in accordance with the law.
However, SSL JV has rejected the termination, insisting the agreement remains valid and legally binding.
In a strongly worded response through its lawyers, Tharollo Chambers, the company demanded that MCC immediately withdraw its cancellation letter, confirm the validity of the contract and pay all outstanding fees, including the Stage One payment of M2,730,345, within five days.
The lawyers further demanded that MCC issue all outstanding approvals required for the implementation of the project.
SSL JV argued that the contract was awarded following a transparent and competitive procurement process that included public tendering, technical and financial evaluations, negotiations, the issuance of a Letter of Award and the subsequent signing of the agreement.
According to the company, MCC actively participated in every stage of the procurement process and even oversaw implementation after the contract became operational in January this year.
“The contract was fully operational by January, with MCC participating actively in its execution,” the lawyers stated.
SSL JV dismissed MCC’s assertion that the contract contravened legislation, arguing that the Council had failed to identify any specific legal provision allegedly breached.
The company also accused MCC of ignoring Clause 17 of the contract, which prescribes the procedure for terminating the agreement.
According to the lawyers, the Council’s unilateral cancellation amounts to an abuse of public power and a breach of contractual obligations, particularly because MCC had willingly participated in the procurement process and authorised implementation of the project before raising any objections.
SSL JV further maintained that MCC’s offer to make pro-rata (proportional) payments for work already completed was unacceptable, arguing that its client remains entitled to full performance of the contract and payment in accordance with its terms.
The company warned that it has already suffered substantial financial losses as a result of the Council’s actions.
Its legal representatives also confirmed that the dispute has now been referred to the Office of the Ombudsman, alleging administrative injustice, abuse of power and procedural unfairness by the Council.
The latest exchange comes after MCC initially wrote to SSL JV on 9 June advising that concerns had emerged over whether the value of the contract exceeded the Council’s financial authority. At the time, MCC invited the company to make representations before reaching a final decision on the matter.
The disputed consultancy contract stems from a tender awarded in November 2025 for the rehabilitation of the Tšosane dumpsite and the development of the alternative Tšoeneng sanitary landfill. SSL JV’s financial proposal for the project was approximately M27 million.
The dispute threatens to delay implementation of the Constitutional Court’s order requiring the closure and rehabilitation of the Tšosane dumpsite and the development of a new sanitary landfill, with strict implementation timelines already in place.
