The KwaZulu-Natal Department of Transport (DOT) is assembling a strong team of legal minds to guide them on a lawsuit instituted by insurance company Tokio Marine & Nichido Fire Insurance Co. 

The Japan-based insurance company has sued the eThekwini Municipality, Transnet SOC Limited, and the DOT in respect of the April 2022 floods, which affected Toyota South Africa Motors (Pty) Ltd (TSAM), based in Prospecton.

In court papers, it is stated that the three organisations had failed in their duty to maintain infrastructure and should have known that neglecting such responsibilities could lead to flooding.

During the April floods, the structural integrity of the Umlaas Canal and the diversion berm was compromised, leading to stormwater flowing into the Prospecton Industrial Area, where the Toyota plant is situated, causing extensive flooding and damage, as read in the court papers.

It stated that Transnet owned the Umlaas Canal and was responsible for its management and maintenance, as well as the flood risk associated with it. The concrete-lined canal is intended to channel and divert the uMlazi River around the Prospecton Industrial Area. Together with the diversion berm, it forms an integral part of the flood control and prevention mechanism for the Prospecton Industrial Area, it further stated.

It said the DOT was responsible for the management and maintenance of the diversion berm, while the municipality owned, managed, and was responsible for the maintenance and control of the stormwater management system for the Prospecton Industrial Area.

Tasneem Lorgat, the general manager, Marketing Communications for Toyota, stated that TSAM submitted its insurance claim to Tokio Marine in respect of the floods.

Lorgat stated that the flood affected TSAM’s manufacturing operations.

She said the litigation proceedings are not being facilitated and/or funded by TSAM. Accordingly, TSAM will not benefit in any way from the subrogated recovery action against these entities.

She said upon learning of the impending recovery litigation, TSAM undertook, with the consent of Tokio Marine, to engage with each of the defendants to advise them of the impending subrogated recovery action.

The MEC for Transport and Human Settlements, Siboniso Duma, said that he had spoken with  Andrew Kirby, the president and CEO of TSAM, on Friday. 

Duma stated that the department is consulting with lawyers and could not get into the legal technicalities and details of the processes that will unfold.

“Kirby has emphasised his commitment to work with us to build this province. We have agreed to sustain our relationship that has evolved over the years. We have agreed that nothing should come between us and this enduring relationship,” Duma said. 

eThekwini Municipality spokesperson, Gugu Sisilana, said the municipality was aware of the court action and had filed a notice to defend. 

An eThekwini Municipality finance committee report, in April 2025, stated that the municipality is actively working on improving critical infrastructure and water supply systems, particularly in the Toyota and South African Breweries (SAB) precincts, south of Durban, to mitigate future disruptions and demonstrate accountability

In a municipal report, a suggestion was made to explore the possibility of relocating TSAM from its current location, which is situated in a flood-prone area in Prospecton, and that the current weather conditions pose significant risks to the company’s operations.

According to the report, relocating to another area within the eThekwini municipal region should be considered to mitigate potential long-term impacts, including huge job losses.

Refilwe Ramatlhodi Ndhlovu, manager of corporate communications at TSAM, indicated that TSAM has no plans to relocate its manufacturing operations and remains invested in the community and investments made at the plant.

Andre Beetge, DA Ward 97 councillor and Executive Committee member (Exco), stated that TSAM plays an important role within the southern economy.

He said TSAM also creates job opportunities, and one must take into account the ancillaries that find themselves directly reliant on the existence and location of this “anchor” manufacturer.

“By our layman’s estimation, approximately 35% of neighbouring Amanzimtoti and Isipingo are reliant on jobs so created. It is of critical importance that the municipality invest in infrastructure within the Prospecton and adjacent area to ensure sustainable service delivery to the entity, which includes stable electricity and water supply, sustainable road infrastructure, and proper drainage against the backdrop of changing weather patterns,” he said. 

According to Beetge, the choice to keep TSAM in place has become even more crucial for the south in particular and eThekwini in general, since the Durban International Airport was moved and the dig-out port near Isipingo was not implemented.

“If Toyota closes, Toti closes,” Beetge concluded. 

zainul.dawood@inl.co.za 

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