The relationship between the Govan Mbeki Municipality and the Govan Mbeki Housing Company (GMHC) that runs and manages some of the properties belonging to the Govan Mbeki Municipality needs thorough scrutiny as it seems to be having all the ingredients of a cozen relationship.
That particular company was appointed by the municipality to manage and collect rent from some of its properties on behalf of the municipality.
Though it has failed dismally to stick to its end of the bargain and has reneged from many of its contractual obligations, the municipality still turns a blind eye towards some of its financial mal-practices while it is in deep financial dire straits.
The company has been collecting extra money illegally for the past seven years from those tenants who stay in apartments not equipped with prepared electrical meter boxes in a guise that such a fee is a direct payment to the municipality since they did not have prepaid meters.
The tenants had no qualms about the payment for the “electricity” at first until the revelation by the municipality when power was disconnected from certain sections of Tsalanang Residential Complex, one of the properties managed by the company.
The municipality has never received even a brass farthing from the company, either as payment for the services rendered or electricity since the company took over the management of the place in 2004.
Clause 9 of the lease agreement states unequivocally: “Payments of municipal charges for rates and taxes will be the responsibility of the lessor”.
It is completely perplexing why the GMHC is now like a headless chicken running helter-skelter demanding that the tenants pay the municipality for rates which is in sharp contrast and a violation of their agreement.
The onus is now on GMHC to do the honourable thing without hindering the tenants’ progress any further and hand back the flats to the municipality since they had failed to develop the place as they promised when they took over.
The municipality also revoked the contract in the process they had with the GMHC, consisting of 81 houses belonging to the municipality in various towns in the area.
Though the municipality is responsible for the maintenance of the properties, it is alleged by the municipality that they had no option but to rent out all those houses at a price below the market value.
Another worrisome aspect that should be looked into is that some of the people who made the proposal for the houses to be sold and that first preference should be given to people living in those houses and were already occupying them at the time, are former employees of the GMHC.
To everyone’s astonishment, the municipality remains tight lipped until this day about what transpired to that supposed payment for electricity.
People who may have been implicated in that financial mismanagement were in the process elevated to the highest office in the municipality.
Heaven help the community of Tsalanang Residential Complex.
Mziwakhe Ntshalintshali, eMbalenhle.
(Govan Mbeki Municipality’s response.
On the issue of municipal owned houses, Govan Mbeki Municipality took a decision to dispose of these houses and the matter is done and dusted. also, the principle of payment for services rendered applies across and if there is any discrepancy it will be investigated and corrected as such.
Henry Masango, head of Marketing and Communication of the Govan Mbeki Municipality.)
