Businessman threatens to sue group for R10m
BUSINESSMAN Vivian Reddy has threatened to sue the Concerned Citizens Group (CCG) for R10 million after the Durban High Court dismissed its court bid to stop the construction of a multi-million rand development.
CCG members Mohammed Moola and Devadas Paul David had challenge the Kwadukuza Municipality’s decision to sell more than 20 hectares of land at a golf course to Reddy’s Double Ring Trading company.
“This captured group is really a proxy of local business persons that does not want competition in the town of Kwadukuza. Their frivolous objections have prevented and delayed the execution of the project.
“We have incurred major expenses from the delays and, more importantly, more than 2 500 people were denied employment opportunities, as this mall could have been completed 12 months ago,” he said.
The CCG alleged in its founding affidavit that the municipality sold the property unconditionally to DRT for R9m and not on the basis of a public private partnership which had been conveyed to the residents and ratepayers of Kwadukuza.
They further contended that the municipality did not follow tender process which was awarded to DRT on the basis of an unsolicited bid.
DRT contended that a decision to sell property was taken in October 2015 in terms of a resolution passed by the municipality at a special council meeting. As such, DRT submitted that any attempts to review and set aside the decision to sell property should have been launched within 180 days of the resolution, not in January as the CCG had done.
The court found that the applicants had known of the sale to DRT since February 2016 but only chose to bring an application, on an urgent basis, almost a year later.
Judge Mahen Chetty said the municipality had an obligation to those who were not ratepayers, especially those living in informal settlements who may not contribute financially to its coffers.
Chetty was in agreement with representatives of DRT and the municipality that the interdict which has been sought was based on a decision by the municipality.
CCG chairperson, Haroon Mohameddy, said it intends to take the council’s decision to sell the land on review.