Toyota SA distances itself from R6.5 billion lawsuit against KZN government
Toyota SA Motors has clarified that it will not benefit in any way from the subrogated recovery action against these entities
Image: Bongani Mbatha/Independent Media
Toyota South Africa Motors (TSAM) has distanced itself from a looming legal battle involving its insurer and KwaZulu-Natal government stakeholders.
According to reports, TSAM's insurer has filed a R6.5 billion lawsuit in the Durban High Court, stemming from damages suffered at TSAM's Prospecton plant during the 2022 KZN floods.
Tasneem Lorgat of Toyota South Africa Motors (TSAM) explained that, while the car manufacturer is aware of the action undertaken by Tokio Marine & Nichido Fire Insurance Co. Ltd against the eThekwini Municipality, the Department of Transport and Transnet SOC Limited, TSAM is neither facilitating nor funding the litigation proceedings.
"Accordingly, TSAM will not benefit in any way from the subrogated recovery action against these entities. Upon learning of the impending recovery litigation, TSAM undertook, with the consent of Tokio Marine, to engage with each of the defendants to advise of the impending subrogated recovery action," Lorgat said.
Speaking at a media briefing on Friday, Department of Transport and Human Settlements MEC, Siboniso Duma, said he met with TSAM's President and CEO, Andrew Kirby.
"Over the years, we have worked well with Mr Kirby, Mr Nigel Ward – Executive Vice President, Manufacturing, and the entire Toyota family. We have agreed that nothing should come between us and this enduring relationship," Duma said.
"We do not doubt that the department that Toyota will continue to be the most preferred brand in the country," the MEC added.
Damage to the area around Toyota SA Motors's Prospecton plant.
Image: Leon Lestrade/Independent Media
According to The Mercury, the plant and surrounding areas suffered substantial damage during the floods. Papers reportedly further claim that flooding experienced in the Prospecton industrial area was exacerbated by a failure to maintain the structural integrity of the Umlaas Canal.
Furthermore, this concrete-lined canal, designed to divert the Mlazi River around a densely industrialised zone, has been at the centre of ongoing disputes regarding environmental and infrastructural responsibilities.
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