Vivian Reddy’s company compelled to pay back outstanding rates to KwaDukuza municipality [UPDATE]

UPDATE: Correction and apology to KwaDukuza Mall

The North Coast Courier seeks to clarify and correct portions of an article published on June 21.

The article titled ‘Reddy appeals payback court order’ refers to a court case in the KwaZulu-Natal High Court between the KwaDukuza Mall and KwaDukuza Municipality (KDM).

It was incorrectly stated that the municipality initiated the court case to seek relief for outstanding rates payable by the mall and its developers, Double Ring Trading 7.

The case was an application by the developers to set aside a decision in KDM council which declined a rates rebate application brought by Double Ring Trading 7.

The original article further stated that the judgement compelled the developers to pay back millions in withheld rates.

Although the application to set aside council’s rebate decision was dismissed with costs, there was nothing in the court order that compelled a repayment.

It must be stressed that the developers have appealed the results of the case and litigation is ongoing. Mall spokesperson Brian Mpono also further denies that there were any rates outstanding.

“Factually, KwaDukuza Mall has paid its rates and utilities since inception, being over R53-million to date. Do note that the rates are paid without prejudice (as agreed with the municipality due to court action),” he said.

The article further claimed that the developers were immediately liable for agreed upon infrastructure upgrades in the area surrounding the mall.

Specifically, it was said that the widening of a bridge over the R74 road was due to be completed by the developers.

This was incorrectly represented to have been part of the court ruling whereas the infrastructure upgrades did not factor into the ruling whatsoever.

“The issue of the widening of the bridge was never part of the court engagement, and it is not in contention. The bridge expansion is part of Phase 2 of the KwaDukuza Prescient [sic] Development – an R800-million project for a value centre, 350 homes, and a hotel. This project is currently in planning phase, and during implementation, it is expected to create 1 200 direct jobs and over 10 000 indirect jobs,” said Mpono.

The timing of the bridge expansion remains an issue of contention between KDM and the developers.

“KwaDukuza Municipality would like to confirm that the KwaDukuza Mall Record of Decision does not refer to any phasing of the development and has not been amended until to date. Importantly, the widening of the bridge was part included as part of the conditions of approval which were itemised in the Record of Decision and importantly it was not linked to any phases,” said KDM spokesperson, Sipho Mkhize.

Finally, the Courier apologises for the errors and for not contacting the mall for comment on the original article.

ORIGINAL STORY

Businessman Vivian Reddy’s Double Ring Trading 7 company has been compelled to pay back millions of outstanding rates to the KwaDukuza Municipality (KDM).

This after KDM won a recent court case in the KwaZulu-Natal High Court, where the municipality sought relief for incorrect rates rebates collected and lack of previously agreed development projects from the company.

Double Ring Trading 7 has already appealed the case.

The KwaDukuza Mall was opened in 2018 after four years of development work, after the company was awarded the contract.

As part of the original tender, the developers also had to provide infrastructural upgrades in the area immediately surrounding the mall.

Once the mall opened, the developers applied to the municipality for a rates rebate.

This served before council for a decision, where it was presented by executive director of economic development and planning at KDM, Sikhumbuzo Hlongwane.

He argued that a rates rebate would mean a double benefit to the company given that they had already won the tender process and that the sale price of the land did not take a rebate into account.

Council agreed and denied the rebate in 2019.

Nevertheless, Double Ring Trading 7 partially withheld rates which led to the court case.

KDM spokesperson Sipho Mkhize confirmed that although some rates had been paid in the interim three years, there was still an amount outstanding.

Unconfirmed reports claim that the figure could be as much as R20 million.

Recovering the outstanding rates was part of the primary judgment handed down by judge Mathenjwa on June 10.

“KwaDukuza Council now expects the developer to settle the outstanding rates, including interest, as a matter of urgency. This will ensure that this account is removed from the top 20 council debtors list,” said Mkhize after the court verdict.

In terms of the aforementioned infrastructure upgrades, the neighbouring bridge which leads to the centre of KwaDukuza town was to be widened and upgraded to deal with the extra traffic to the mall.

So far, no work has been done on the bridge.

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