MCC faces M27m lawsuit 

…over Tšosane dumpsite contract 

…as Council attempts to walk back on deal 

Seithati Motsoeneng 

THE Maseru City Council (MCC) is facing a possible M27 million legal battle after attempting to revisit a contract it had already awarded and signed for the rehabilitation and stabilisation of the Tšosane dumpsite and development of the alternative Tšoeneng sanitary landfill project. 

At the centre of the dispute is consulting firm SSL Joint Venture (SSL JV), which says MCC’s latest move to question the legality of the agreement amounts to an unlawful attempt to walk away from a binding contract. 

The conflict was triggered by a letter dated 9 June 2026, signed by Acting Town Clerk, Moea Makhakhe, in which MCC informed SSL JV that concerns had emerged over whether the agreement exceeded the Council’s financial jurisdiction. 

The letter was written in reference to the contract for the design and supervision of the Tšosane dumpsite stabilisation and rehabilitation, and Tšoeneng sanitary landfill design and long-term environmental design project. 

“Our attention has been drawn to the fact that the contract above that we signed with you is way above the Maseru City Council monetary ceiling/jurisdiction on works of this nature. That, by reason thereof, means that the contract may very well be illegal or unlawful,” Mr Makhakhe wrote. 

The Council further invited SSL JV to submit written representations before it reached a final position on the matter. 

Tender award 

The disputed project dates back to July 2025 when MCC advertised the tender. 

According to SSL JV, three bidders initially expressed interest in the project, with only two ultimately meeting eligibility requirements. 

Following technical and financial evaluations, SSL JV emerged as the preferred bidder. 

The company says it subsequently entered negotiations with MCC in which detailed discussions were held on pricing and implementation. 

SSL JV proposed a budget of approximately M27 million. 

SSL JV’s Project engineer, Lebamang Jane, told this publication that the Council officials questioned whether the budget had been overstretched and requested detailed justification of the figures. 

According to Mr Jane, those negotiations concluded with all parties agreeing that the financial proposal was realistic and suitable for the project. 

A Letter of Award was later issued on 19 November 2025 before a formal agreement was signed. 

SSL rejects MCC’s position 

In response, SSL JV, through its legal representatives, Tharollo Chambers, rejected MCC’s position and warned of imminent litigation if the Council attempts to terminate the agreement. 

In a letter dated 12 June 2026 addressed to MCC, the lawyers described MCC’s position as “belated, vague, speculative and unsubstantiated”. 

The lawyers argued that the contract had already gone through all procurement requirements including public tendering, technical and financial evaluation processes, negotiations, issuance of the Letter of Award and eventual execution of the agreement. 

SSL JV further argued that at no point during procurement, negotiations or signing did MCC raise concerns over financial limits or legal authority to enter into the contract. 

The company maintains that by issuing the Letter of Award and signing the agreement, MCC had effectively confirmed that it possessed the legal authority to contract. 

SSL JV therefore says if MCC proceeds to cancel or invalidate the agreement, it would be left with no alternative but to approch the courts for a remedy. 

Its lawyers would seek a declaratory order confirming the agreement as valid and binding, together with an interdict preventing cancellation of the contract. 

The company also indicated that it intends to escalate the matter to the Office of the Ombudsman, arguing that the Council’s conduct amounts to administrative injustice, abuse of power and breach of contract. 

SSL querries changing position 

Mr Jane further questioned why MCC had only raised concerns about monetary ceilings months after negotiations had concluded and agreements had been signed. 

He said the Council officials had previously acknowledged that the project was unlike anything MCC had handled before and had accepted the proposed financial structure after negotiations. 

Mr Jane alleged that individuals who were not part of the original procurement process had recently entered the discussion and were now questioning the financial scope of the project. 

He also argued that the Council leadership involved in raising the latest objections had participated throughout the procurement process, including discussions, contract negotiations and signing stages. 

Contacted for comment, MCC spokesperson, Lintle Bless, declined to comment, saying the matter was confidential. 

Background 

The Tšosane dumpsite has long been a source of concern for nearby communities, who have repeatedly called for its closure due to health risks and environmental degradation. 

They successfully petitioned the Constitutional Court to have the dumpsite closed. 

In October 2025, the court first directed the parties to negotiate a settlement. On 17 November 2025, a deed of settlement was issued, confirming that residents’ rights to a scenic, clean, decent, safe and healthy environment are directly justiciable. 

The parties agreed that the Ha-Tšosane disposal site must be stabilised, rehabilitated and closed, while a new facility, the Tšoeneng Sanitary Landfill, is developed. 

In its final ruling issued on 12 February 2026, the court set out five implementation phases with strict timelines. 

Phase One was to run from Monday to 29 March 2027. Parts of Phase Two – including the first cells of the Tšoeneng Landfill development and encapsulation works – commenced in November 2025 and are expected to conclude by 23 November 2027. 

Phase Three, involving development of the second landfill cell, will run from 26 August 2026 to 27 October 2027. Phase Four – implementation of waste processing facilities and final infrastructure – is scheduled from 5 April 2027 to 1 March 2028. The final phase, project closure, is set for 29 March 2028. 

These timelines will be inevitably missed if the project gets mired in litigation.  

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