Mbombela shopping centre tenants ask for support amid electricity cut
The Village Shopping Centre in Mbombela has been without electricity for over a month due to the owners not paying the electricity, rates and taxes to the municipality. The centre, however, is still in operation.
Tenants of the Village Shopping Centre want the townspeople to know that the centre is still up and running.
While Village has been without electricity for just over five weeks now, the remaining tenants have called on the community to support them during this trying time while they operate off generators.
These tenants have been without power since September 8. The electricity issues are down to the centre owner, the Nova Property Group, owing R3.1m in electricity, rates and taxes to the City of Mbombela (CoM).
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The amount was confirmed through a letter sent to some of the tenants by CoM, which was seen by Lowvelder.
The tenants have since suffered major financial losses due to the situation. Several businesses had to temporarily close their doors, and the remaining ones have to operate using generators.
According to Marisca Müller of the Local Choice Pharmacy at Village, the remaining tenants at the centre include the pharmacy, SPAR, the Blind Guys Lowveld, the SA Italian Barber, Bernina Nelspruit, Keller Williams Lowveld and the Laundrohub.
Müller said although the other tenants had to temporarily close their businesses, some were still operating and they need the community’s support now more than ever.
“We are still up and running. We are not closed,” she said.
“Unfortunately, since the closure of the other businesses, we have lost 30% to 40% of feet at the centre. We need the support of the community.”
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Meanwhile, the tenants at Courtside had not had power since September 19, however, the electricity there has since been switched back on. This is due to a reported agreement between SPAR Lowveld and the CoM.
Nova also owes the CoM over R3m in electricity, rates and taxes for Courtside, bringing the total amount to over R6m for both centres. Nova Property Group owns both the properties via their subsidiary companies, The Village Mall Investments and Tarentaal Centre Investments.
However, the director of The Village Investments, Matthew Osterloh, who is also an executive property director of Nova, according to its website, denied that Nova Property Group owned the centres.
He had previously told Lowvelder that The Village Investments has maintained a good relationship with the CoM over the past 10 years plus, “and while the accounts have fallen into arrears from time to time, there has always been an unspoken agreement that they would be accommodating, as the accounts were always paid.
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“Mbombela has now, however, taken a very hard stance on arrears and on their requirements for reconnection. It is common knowledge that Mbombela is bleeding millions of rands due to load-shedding and that they owe Eskom over R1b. We believe this to be the reason why they have taken this hard stance.
“Be that as it may, we have had discussions with senior staff in their finance department, including the CFO and MMC, and hope to find an amicable solution as soon as possible.”
Osterloh said queries regarding Courtside had been addressed in his response about Village. By the time of going to press, he had not responded to follow-up questions sent by Lowvelder.
The CoM’s spokesperson, Joseph Ngala, had previously told the newspaper the municipality had had a meeting with some of the Village and Courtside tenants in recent weeks in an effort to find a solution and “probably save livelihoods and jobs”.
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He had not responded to follow-up questions regarding the reported arrangement with SPAR Lowveld by the time of going to press.
On September 26, Moneyweb reported that the Mbombela Sheriff’s office had attached both Courtside and Village following a judgment against Nova.
The sheriff’s office has confirmed this attachment.
Moneyweb also reported that the properties would reportedly have gone on auction, but Nova’s application for leave to appeal has brought the process to a standstill.
