Opposition against R135m purchase of FTLM chambers
The purchase price of R135 million is to be paid with an initial deposit of R50 million and in instalments over three years.
BURGERSFORT – Opposition parties in the Fetakgomo Tubatse Local Municipality (FTLM) are opposing the decision by the council to purchase a R135-million building.
The FTLM council resolved to purchase the building for R135 million, over a period of 36 months, with a deposit of approximately R50 million.
The decision was taken during a council meeting on September 25.
The building, which belongs to Tubatse Property (Pty) Ltd, was previously leased by the municipality for over R2 million per month and used as the Civic Centre, despite the fact that the municipality owns its own building that previously housed the municipal offices.
The DA in Limpopo said it is concerned that the purchase price exceeded the highest valuation requested by FTLM by R64,2 million.
“On June 25 Montani Property Valuers valued the building and surrounds for R64 500 00 and on June 30 Makgakga Property Valuations found the same building and surrounds to be valued at
R70 830 000.
The purchase price of R135 million is to be paid with an initial deposit of R50 million and in instalments over three years. The DA received confirmation that the R50 million payment was made,” revealed DA’s Limpopo leader, Jacques Smalle.
In 2014 the Limpopo Department of Cooperative Governance, Human Settlements and Traditional Affairs (Coghsta) payed R116,5 million for a piece of dormant land valued at R8,14 million in Tubatse, effectively paying R108 million too much.
“The DA believes that it is no coincidence that both the infamous Tubatse land deal and now the purchase of the civic centre came just before elections. The Tubatse land deal before the 2014 national elections and the civic centre purchase was concluded 11 months before the 2021 elections.”
Smalle said his party will lay a complaint with the Public Protector against the FTLM for entering into a purchase agreement of a R135-million building.
“We therefore urge the Public Protector to swiftly investigate this matter to ensure that taxpayers’ money is utilised prudently and transparently and not for the benefit of the politically connected.”
Meanwhile, The Bolsheviks Party of South Africa also appealed to the Limpopo premier, Stan Mathabatha, Coghsta and Limpopo Treasury to intervene. “Poor management and lack of any financial understanding and empathy for public funds is at the root of this move by the councillors who approved this move.
“This futile activity has to be stopped and service delivery be prioritised instead of working on ways to loot the state resources which must be directed to the betterment of the people of FTLM,” said the party’s leader, Seun Mogotji
FTLM is one of the municipalities in Limpopo that invested funds with VBS and incurred losses on the balance of the investment amounting to R243 million.
This put strain on the municipality’s ability to deliver services to communities. The basic service delivery and infrastructure development and the local economic development objectives of the municipality were not fully met due to the lack of funds.
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