Council supports ‘crony’ land lease
Local councillors have questioned the fact the municipality is leasing a property with a lease price which they say is 30 years out of date.
ETHEKWINI Municipality has refuted claims that a site in Selborne Road, Umbilo, is being leased below market-related value.
At a recent meeting of the eThekwini Council, the ANC voted in favour of a land lease for a crematorium on the site. However, the Democratic Alliance raised concerns saying the property was greatly under-valued which benefited the ANC's political ally, NUMSA.
According to Ward 33 councillor, Nicole Graham, the DA raised concerns in Council about the market-related value of the property and questioned why it was being leased at such a low rate. “Naturally, COSATU's ownership of Doves was concerning when it became apparent that the rental was comparatively low. It is vital in this economic climate, and given the city's stagnant rates base, that all possible income streams are fully utilised,” she said.
According to Bluff ward Councillor Duncan Du Bois, the site is 8,028 square metres in extent and is to be leased by Council to Doves (Pty) Ltd for R13 078 per month. This works out to R16 per square metre. In drawing the Council’s attention to the apparent anomaly in the rental rate, Du Bois noted that Doves is owned by NUMSA. At R16 per square metre, the lease price is 30 years out of date and should be at least R50 and upwards per square metre.
Noting that a Strategic Risk Assessment Report of June 2015 had pointed out that the city’s stagnant rates base constituted one of the biggest threats to sustainabilityof service delivery, Du Bois asked why the ANC prioritised the interests of a political ally over the city’s financial welfare. His move to have the item be referred back back to Exco for a revision based on market-related values was rejected.
In response to queries by Berea Mail, eThekwini Head of Communications, Tozi Mthethwa said: “The Municipality is aware of the claims involving the site on Selborne Road, Umbilo that is to be leased for a crematorium. The matter has been investigated and it has been confirmed that the rental is market related.”
