- Toyota South Africa’s insurers have instituted a R6.54 billion legal claim against the KZN Provincial Government, Transnet, and the eThekwini Municipality, who are responsibles for management of infrastructure in and around the area of Toyota’s Prospecton Plant.
- The insurer is pursuing recovery of the insured loss in Toyota’s name, for R4.49 billion for damage repair and plant reinstatement and R2.05 billion for business interruption losses.
This is one of the first major cases against a metro in South Africa for failing to implement infrastructure maintenance and resilience planning against extreme weather events. Most of South Africa’s metros and municipalities are riddled with unqualified managers, dysfunction and corruption which compromises basic service delivery plus maintenance of infrastructure and infrastructure investment. Read more
The case involves the devastating flooding which occurred in Kwazulu Natal in April 2022. Read more
Toyota Prospection Plant flooded in 50 minutes after a nearby river dam broke. The 87-hectare plant produces and sells vehicles such as the Hilux pick-up, Corolla Cross, Hiace and Fortuner to 74 different countries around the world.
Related news: Why are floods in Kwazulu Natal so devastating? Urban planning expert explains
Recurring systemic failures in public infrastructure is becoming an increasing liability to affected business owners in South Africa. This opens provincial and local governments to lawsuits.
Author: Bryan Groenendaal
