Questions about city’s valuation roll after Durban company wins tender

POLOKWANE – A well-known Durban-based municipal valuation company has been appointed by the Polokwane Municipality to compile the city’s new valuation roll, despite the fact that there are very experienced local companies with many years’ experience in municipal property valuations.

It is not the first time this year that a company from outside the province was awarded a huge tender by the municipality, comprising millions of rand that will be lost to the province. Fleet Management Africa was awarded a tender of to R200 million earlier this year as was an IT company, Business Connexion, who was awarded a tender amounting to R14 million.

Just over R8 million was tendered by the company Evaluations Enhanced Property Appraisals (EEPA), who won the tender. A company that successfully completed the last Musina valuation role, DDP Valuers and that also has an office in Polokwane, tendered the lowest amount to do the work at R5 million. Ten tenders, ranging between R5 million and nearly R21 million were received. Except for three tenders, all were below R10 million.

Tinus Nel from DDP Valuers said he had queried the awarding of the tender to this group, but the municipality had not yet answered his query, although 14 days had already passed. He wanted to know on what grounds the tender was awarded to EEPA. According to information, other unsuccessful tenderers are also querying the tender award.

The valuation tender was advertised quite late by the municipality and closed on July 31.

According to an evaluator Review spoke to, it could take 10 days to obtain the 70 000 deeds necessary for the compilation of the Polokwane valuation roll. The municipality wanted the draft valuation roll by end November, but apparently has given leeway until December 31. The final valuation role must be ready by January 31, 2014.

The roll would then perhaps be released, probably by March or April for inspection for a period specified by law, when property owners would have a chance to lodge objections. These could include objections against valuations perceived too high or increases in valuations deemed too much when benchmarked against the sales of similar properties in the area.

Valuations are based on the market value of properties and objections must be treated in accordance to legislation.

EEPA compiled valuation rolls in Johannesburg and Ekhuruleni, among others.

According to the notes of the budget speech of the mayoral committee member for finance on May 22, the Johannesburg valuation roll reportedly received 85 499 objections, of which 73% were objections lodged by the city itself for properties either over or undervalued. Nel said the Ekhuruleni valuation roll received 22 000 objections. At the time there were allegations that the Guptas had a “finger in the EEPA pie”, with several Gupta properties reportedly being incorrectly valued.

Bob Kistnasamy, project coordinator at EEPA, however denied allegations that the company had any links with the Guptas. He said the company would expedite the valuation process in terms of the act and could be measured in terms of what they produced. He said a project team had already been set up in Polokwane.

Revenue received from property rates are used by the municipality to fund basic services that benefit the community, such as the construction and maintenance of streets, sidewalks, street lighting and stormwater drainage facilities, the building of clinics, parks recreational facilities and cemeteries.

Municipal spokesperson, Matshidiso Mothapo confirmed the appointment of the municipal valuer. “The municipality is still awaiting certain documentation including acceptance letters from the service provider and entering into a legal service level agreement. Details of the appointed service providers are regularly posted on the municipal website.

“Appointment of service providers is based on the supply chain policy and anyone can apply, irrespective of where they are based. Based on your line of questions, you are advised to pursue by applying formally through the Public Access of Information Act,” he said.

For the last 20 years, the contract for the city’s valuation roll was awarded to valuers Eli Stroh and Theo Goossen.