UPDATE: Stanger mall locked in legal battle

The development of the controversial new KwaDukuza Civic Centre and mall has been stalled by a fierce legal battle between a group of KwaDukuza businessmen calling themselves the concerned citizens group and KwaDukuza municipality (KDM) .

According to DA executive mayoral committee member Malcolm Hubner, the concerned citizens group applied for a court injunction to stop construction.

Also read: Opposition objects to KDM “corrupt” mall deal

“The developers, Double Ring Trading owned by multi billion rand businessman Vivian Reddy (who won the tender in 2014), applied to start early ground work construction on the site last week. The concerned citizens group then applied for a injunction which did not allow for the developer’s application to be processed.

“The application can only be considered once the matter is resolved in court.”

The development of a civic centre and shopping mall is to take place on the golf course as well as the recreational ground. The concerned citizens group have accused the municipality of conducting the tender process unfairly and are outraged with the plans to lose the sporting facilities at the recreation grounds without any clear plan for a new sports precinct. They also believe Reddy has plans to build a casino on the site and that the mall is a convenient cover up.

The plans, which have not yet been approved by the municipality, make provision for a 30 000 m² shopping mall, a new civic centre, a one-stop centre for government services, an amphitheater, rehabilitation of roads, storm water and electricity infrastructure and the maintenance of the 12 hectare protected wetland area that forms part of the golf course in KwaDukuza.

Adding fuel to the fire, Hubner said KDM council had agreed to use the Build Operate Transfer Mode (BOT) when the civic centre moves to the mall.

The BOT model entails the municipality paying rent to the developer for 15 years.

According to the concerned citizens group’s calculations, the rent will amount to R1.7 billion over 15 years. They claim this money will have to be found by increasing rates.

However, KwaDukuza municipality communications officer Sphelelo Ngobese was adamant the mall would not be subsidised in this way.

He denied the application process was flawed and said the municipality had no intention of a rate increase.

“Adverts were placed in a national newspaper (Sunday Times) and also placed on KwaDukuza municipality’s website as the legislation dictates. The tender process was opened from December 3 until March 4, 2014.

Ngobese said that on closing the tender, four companies submitted their proposals and they were all evaluated.

“In the last three financial years, the auditor general has not found anything wrong with our bidding process related to this tender award. The truth is that the scope was never changed.

“The developers packaged their project in line with the scope given by KDM. The project of re-developing the site was conceived and gained life as result of a study commissioned by the municipality, which resulted in the KwaDukuza urban regeneration plan.

“That planning process was a participatory process wherein the public was duly consulted. It was that planning exercise that identified the golf course as a logical extension of the CBD together with other programs/projects that would contribute to the regeneration of KwaDukuza.”

Hubner said KDM had a good chance of winning the case. If this happens, the construction should start in a month or two.

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