No irregularities in Biggar Farm purchase, says Ngobe
In light of the fact that the land was purchased at just over 100 per cent profit, making the acquisition appear irregular, Ngobe said the department did not consider there to be any irregularities with the purchase.
Lowvelder reported in last week’s edition on what appeared to be a skewered land deal that netted the seller of Biggar Farm a profit of R19 million.
The 161-hectare farm was originally purchased from a GJJ Bruwer by Bongiveli Construction in 2012 for R12 million and sold to the City of Mbombela Local Municipality (CMLM) in the 2020/21 financial year for R34 million.
According to human settlements’ spokesperson, Freddy Ngobe, the price at which the land was purchased, took into consideration a number of factors that influenced the decision to acquire it.
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“It is common knowledge that there are a number of factors that lead to capital value appreciation or growth of a property’s market value over time, as opposed to inflation of prices.
These include, among others:
• The supply and demand dynamics of a particular location
• Growth in local population, leading to increased demand for well-located land
• Statutory township establishment processes undertaken on a particular piece of land, as prescribed in the contemporary Spatial Planning and Land Use Management Act 16 of 2013 and the Local Spatial Planning and Land Use Management By-Law,” he said.
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When asked whether the department used land evaluators to establish whether it is sold at market value, Ngobe said it used the services of registered property valuers in order to be advised on the recommended purchase price.
“The department appoints more than one valuer in order to establish a market-related price.”
Ngobe continued to say an agreement was entered into by human settlements, the municipality and the seller in order to finalise the transaction.
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“However, the municipal manager signed off on behalf of CMLM and is therefore accountable for the municipality. The head of department is the accounting officer of the department and is therefore accountable for the Department of Human Settlements.”
In light of the fact that the land was purchased at just over 100 per cent profit, making the acquisition appear irregular, Ngobe said the department did not consider there to be any irregularities with the purchase.
He advised that it was made as part of the informal settlement upgrade programme, adding that it was one of government’s priorities to realise sustainable integrated human settlements in Mpumalanga.
