BHISHO IN RENTAL WRANGLE
Property owner threatens with court in case of failure to pay R4.3m for state entities’ office space A legal battle is ensuing between an East London property mogul and Eastern Cape premier Phumulo Masualle’s office over the failure by provincial public works to honour a fiveyear lease agreement to house two state entities.
In a letter of demand to Masualle’s office and public works by Dean de Villiers of ESDA Properties, lawyers claim more than R4.3-million is owed by the department to his company in rent for his Castellano building in West Bank, East London.
The letter, seen by the Dispatch, gives the government 30 days to pay.
“If the amount of R4 337 977 is not paid within 30 days of receipt of this letter, our client will proceed to the high court for necessary relief,” said Brin Brody of Wheeldon Rushmere & Cole attorneys.
De Villiers told the Daily Dispatch his company had spent R17-million ensuring the building was ready for occupation.
“When I received the award letter, it had a stipulation that the building must be ready within three months of the award date. Had I failed to meet this requirement, I was told I would be liable for paying the rent of the department’s clients until they moved in,” he said.
He accused the department of allowing the previous landlord to dictate terms to them.
“They owe me money for rent since October last year to date. They are illegally paying rent to another landlord whose contract expired two years ago. I have a legal standing agreement with public works. They came to my house so I can sign the lease agreement and promised to come back with a fully signed contract,” De Villiers said.
Last year, public works awarded De Villiers’s company two five-year leases in May, one to house the department of transport’s Amathole regional offices and the other, the departmental entity Government Fleet Management Services, worth R11.7-million and R16.7million respectively.
In October last year, the regional office and fleet entity moved into De Villiers’s building, but vacated within five days after their previous landlord took the department to court challenging the awards.
“Early this year, through my legal team, I sent a reminder that they have a binding legal contract and the tenants must move in. But they didn’t respond. Last week, I sent them a final legal letter of demand, giv- ing them 30 days to pay or face legal action,” De Villiers said.
Public works spokeswoman Vuyokazi Mbanjwa said: “The department is handling the matter internally, together with the state attorney. It must be noted that the matter is the subject of litigation in the high court which is still pending.”
She said the department had embarked on a process to procure alternative office accommodation for the two entities.
“After the bids were adjudicated, a letter of award was issued to the preferred bidder. However, a lease agreement could not be concluded due to litigation that was instituted by one of the unsuccessful bidders,” Mbanjwa said.
However, De Villiers claims he did sign a lease with public works.
“The proposed lease would run for a period of five years at a monthly rental of R169 864.56,” Mbanjwa said.
She added: “There is litigation from one of the unsuccessful bidders against the bid award on this property. The matter is currently in court, and as such it was decided that the user department cannot move into the new premises until the matter has been resolved in court.”
The building is under lock and key, with furniture worth close to a million rand still inside.
Transport spokesman Unathi Binqose confirmed their regional office’s and the state’s fleet management service’s furniture was in the unoccupied building.
They owe me money for rent since October last year to date Dean de Villiers ESDA Properties owner