In a dramatic escalation of an already heated dispute, the Maseru City Council (MCC) has formally cancelled its contract with SSL Joint Venture for the design and supervision of the Tšosane Dumpsite stabilisation and rehabilitation project, as well as the Tšoeneng Sanitary Landfill initiative.
The cancellation, detailed in a letter dated 19 June 2026 and signed by Acting Town Clerk Moea Makhakhe, comes just days after Newsday reported that the council had expressed serious doubts over the legality of the M27.3 million deal and amid an ongoing Ombudsman investigation triggered by the consultant’s complaints of non-payment and breach of contract.
“Maseru City Council has carefully and thoroughly applied its mind to the subject matter under consideration and, in particular, the legality or otherwise of the contract the subject matter hereof. We have also taken into consideration, and seriously so, your representations referred to above in its totality,” the letter reads.
It adds: “Having taken into consideration all the facts, the law applicable and the bigger picture around this contract, we have come to an informed decision that the contract could not legally be entered into as doing so contravenes legislative provisions applicable to contracts of this nature and magnitude. For these reasons therefore, kindly take notice that by this letter, the contract aforementioned is hereby cancelled.”
The letter references prior correspondence, including MCC’s own letter of 9 June 2026 and representations made by SSL Joint Venture through its lawyers on 12 June 2026. It invites the firm to liaise on payment for any work already completed, stating that arrangements will be made for proportional payment.
“You are invited to liaise with our office regarding the works already done and we confirm that for such works (and those only), arrangements are being made to have all concerned paid in proportion to the work done (if any),” the letter states.
SSL Joint Venture, which includes partners such as SECO, SMEC South Africa, and Land Survey and Engineering, was awarded the contract in late 2025. The firm claims it has already submitted key deliverables, including a Status Quo Report, and claims it is owed M2.73 million (10 percent of the contract value) for Stage 1 work. Its lawyers previously accused MCC of material breach and administrative injustice.
Summary
- In a dramatic escalation of an already heated dispute, the Maseru City Council (MCC) has formally cancelled its contract with SSL Joint Venture for the design and supervision of the Tšosane Dumpsite stabilisation and rehabilitation project, as well as the Tšoeneng Sanitary Landfill initiative.
- “Maseru City Council has carefully and thoroughly applied its mind to the subject matter under consideration and, in particular, the legality or otherwise of the contract the subject matter hereof.
- “Having taken into consideration all the facts, the law applicable and the bigger picture around this contract, we have come to an informed decision that the contract could not legally be entered into as doing so contravenes legislative provisions applicable to contracts of this nature and magnitude.
Authored by our expert team of writers and editors, with thorough research.
