Astral Foods Limited (Astral), South Africa’s leading integrated poultry producer, is pleased to confirm that a High Court order was successfully obtained in the Pretoria High Court on 12 April 2021, against National Government and Treasury in a matter where Astral fought against and challenged the non-delivery of basic services faced by businesses and the community living within the Lekwa (Standerton) Municipality.

The impasse with the municipality with regards to water and electricity supply has had a major disruptive impact on Astral’s operations within Standerton. Unfortunately the goings on have also negatively impacted on people living in the town and surrounding areas.  The poor service delivery from the Lekwa Municipality is untenable, and Astral decided to take extraordinary steps in launching legal proceedings against the Provincial and National Government to hold them accountable for the failures in municipal service delivery in Standerton.

The situation dating back to early 2018, where disintegrating infrastructure in the Lekwa Municipality led to severe basic supply interruptions to Astral’s operations, which forced Astral at the time to take legal action against the municipality where a Court order was secured.  Through this the Lekwa Municipality was obliged to submit a longer-term plan indicating how and when it intended repairing and improving the municipal utility supply infrastructure.  This plan however did not materialise.

In terms of the agreed Order issued yesterday, National Government will now intervene in Lekwa Municipality and, together with Treasury, will prepare a financial recovery plan as contemplated in the Municipal Finance Management Act (56 of 2003).

The Order also provides for Astral to approach the Court again for further relief, if it is of the view that the financial recovery plan is not being implemented, although Astral is very hopeful that this will not be necessary and that the parties will instead work together to turn the situation around in the interests of all stakeholders.

“We confirm our full support to National Government and Treasury and look forward to co-operating further in the interests of resolving the very serious issues currently being faced by the Lekwa Municipality, and the impact that this is having on our operations and the community living and working in the area,” concluded Schutte.