De Lille calls for probe on auctioned land

City suspected of losing millions of rand

THE City of Cape Town runs the risk of being investigated by the public protector for a suspected loss of R140 million in public money for allegedly messing up an auction of prime Foreshore land.

This has led outgoing mayor Patricia de Lille to request a forensic investigation into the issue in which her deputy, Ian Neilson, has been implicated by civil rights organisation Ndifuna Ukwazi (NU) as being to blame for the loss.

The 3 932m2 of land in question was bought in 2016 at auction by Growthpoint Properties, the largest South African property investment trust listed on the JSE with assets on three continents.

However, NU uncovered a discrepancy in the bulk rights, or allowed building magnitude, which they say means the city council lost about R140 million.

NU charged Growthpoint Properties bought the 46 000m2 of bulk at the price of 17 500m2, as the latter measurement was stipulated in the city council’s prospectus as the site’s bulk rights.

They said the cost of the 17 500m2 was R86m, but a city council notice read that the proposed development planned to use the entire 46 000m2.

NU pointed to Neilson, then mayco member for finance, and city officials Ruby Gelderbloem (director of property management), and Kevin Jacoby (executive director for finance at the time).

Neilson issued a statement after NU went public, denying that the city sold the incorrect bulk amount.

De Lille said yesterday that she had discussed the issue with city manager Lungelo Mbandazayo and had written to him requesting that he initiate a forensic investigation into what exactly transpired throughout the sale process.

“I wrote to the city manager to express my concern at this alleged loss of public funds and also stated that the city could also run the risk of having an audit query from the auditor-general or as a result of a member of the public reporting the matter to the public protector.

“In light of these concerns and allegations, and in the spirit of transparency and responsiveness, I have requested that the city manager initiate a forensic investigation into what exactly transpired in this sale process,” De Lille said.

Neilson said he welcomed the forensic investigation, saying: “Hopefully it will clarify the facts that are under contention.”

NU co-director Jared Rossouw said the forensic investigation must be swift; the results must be made public; and officials and politicians who are responsible must be held accountable.

“Both the province and the City of Cape Town have a history of selling prime property for cash. The sale of good public land is unacceptable considering the state’s obligation to redress spatial apartheid and advance the right to housing.

“When this is absolutely impossible and land is sold, the city must secure a fair market value. On Site B, the city has, in effect, given a gift of our best land at a discount price to one of the wealthiest companies on the JSE,” Rossouw said.

Social movement Reclaim the City, a branch of NU, at the weekend picketed during DA leader Mmusi Maimane’s speech at the party’s election campaign to demand answers on the Foreshore auction, but they said they were dismissed.

Both the province and the City of Cape Town have a history of selling prime property for cash Jared Rossouw NU co-director