The High Court of South Africa ruled in favour of the Institute of Market Agencies of South Africa (IMASA) in a dispute with the City of Matlosana Local Municipality over unpaid fresh produce funds.
The court found that the Municipality had repeatedly failed to pay market agents and farmers their legally owed proceeds within the required 48-hour period, despite a prior court order. Emphasising that these funds are held in trust for agents and producers, the court intervened by removing the Municipality’s control over the payment system and appointing independent oversight to ensure compliance.
This ruling reinforces accountability and safeguards the financial stability of the fresh produce value chain.