VANDERBIJLPARK – Emfuleni Local Municipality’s (ELM) newly signed R1.1m office lease has come under scrutiny after the DA questioned the procurement process.
This comes after the municipality recently relocated from the controversial OK Building to the former ABSA Building in Vanderbijlpark.
In recent years, the OK Building has put the embattled municipality in the news over tenant-landlord feuds amid persistent nonpayment of rent.
The building was also criticised over its poor condition and alleged health and safety concerns.
DA councillor Maureen Dosoudil issued a statement alleging that the municipality had entered into a sublease agreement with what she described as an “unknown, inexperienced and recently formed business entity” instead of the registered owner of the building.
Dosoudil also alleged that the multimillion-rand lease agreement raises serious questions about value for money and due diligence.
She further claimed the company is a shelf company, with its sole director appointed in February 2024, no disclosed business activities, no VAT registration and an incomplete residential address listed in Vanderbijlpark.
According to the DA, the title deed for the building is held by a Johannesburg-based company, while the municipality’s lease agreement is allegedly with a different entity.
The party also questioned the rental amount being paid by the municipality.
Dosoudil said market-related rentals for approximately 3 000 square metres of office space range between R120 750 and R276 000 per month (VAT included), while Emfuleni is allegedly paying R1.1m per month, equivalent to about R368.73 per square metre.
“The question is to what extent was due diligence done to ensure that if Emfuleni is going to spend over a million rand a month, residents would get value for money,” she said.
She further alleged that despite millions of rand reportedly being spent on renovations, the building remains unfinished.
“Despite spending undisclosed millions of rand on renovations, the building remains incomplete and is filthy. Only two storeys are occupied while another two remain empty and in disarray. Not all staff members have offices or office furniture, and empty offices are stacked with broken furniture,” Dosoudil claimed.
The DA also alleged that Emfuleni could face a R2m claim from the owners of the OK Building for allegedly failing to honour the required notice period before vacating the premises.
Questioning the municipality’s decision-making, Dosoudil said: “Why was Emfuleni so desperate, or should we ask so crooked, that they had to rush into this transaction instead of going out to tender again?”
ELM spokesperson Makhosonke Sangweni responded by saying, “Strangely, she chooses media spectacle instead of accountability. What is worse is she is a member of the Municipal Public Accounts Committee in the municipality. We think this is a political campaign, not about governance and accountability. We stand by our decision, especially because we pay less and get better services than the previous offices. Councillors must not be pursuing private business interests disguised as accountability.”
