PREVIEW: KZN real estate developer takes local government to the cleaners after land expropriation goes horribly wrong
The municipality will lose R32million of its 2017/2018 capital funding, a week before financial year end.
AbaQulusi Municipality has lost millions to real estate developers, Claveshay, in a case of land expropriation that went horribly wrong.
In this case, an underhanded promise made to a shrewd businessman by a misguided municipal manager will result in the municipality losing R32million of its 2017/2018 capital funding, a week before financial year end.
This money lies in a bank account that has been attached by the sheriff of the court, and will be used to pay Claveshay out according to a court order that was issued late last year.
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The loss of this funding and subsequent inability of AbaQulusi to pay contractors for work already done, could lead to Provincial Treasury withholding its funding for all capital projects that were budgeted for in the coming financial year, including the renovations at Cecil Emmett Hall and the Old Commandos Building, and the construction of roads, halls and crèches.
See today’s edition of the Vryheid Herald for an in depth look at the, “financial nightmare,” AbaQulusi now faces, and the events that led up to this crisis.
