Higher price tag throws a spanner in the works

MBOMBELA - The Matsafeni Trust and the provincial government are in a tussle over the parliamentary village that is being built on a section of the Woodhouse farm in the city.

Talks between the parties have reached an impasse, which brought construction to a halt about a month ago. At the centre of the dispute is an outstanding payment of R130 million.

The Matsafeni board has refused to sign the transfer until the Mpumalanga Department of Public Works, Roads and Transport settles the outstanding amount.

Construction had already begun before the board purportedly backed out of an assurance to donate the land after government allegedly welshed on its commitment to provide bulk water and electricity to the expanding Mattafin community.

The land in question holds significant historical importance as the Mdluli clan, who had occupied it since 1880, were evicted under the notorious apartheid laws in the '50s.

Since 1921, ownership was transferred to HL Hall and Sons, a local giant in the fresh produce, property development, pharmaceuticals, technology and financial services sectors.

After a successful land restitution claim in 2013, it was returned to the Mdlulis and bought by the Mpumalanga government for a symbolic R1 to begin construction on Mbombela Stadium.

The sale was halted after an outcry from beneficiaries who approached the Pretoria High Court for an interdict on the proceedings.

A price tag of R8 million rand was ultimately settled on, with the public works spending a hefty R240 million on the village thus far.

Since then, the Matsafeni Trust has withdrawn the donation of the land and added a R130 million on the price, necessitating talks between it and government to resolve the deadlock.

Spokesperson for public works,

Cyril Dlamini, said, "The Matsafeni Trust has notified the department about the withdrawal of the land donation to the Mpumalanga

Provincial Government to construct the parliamentary village, contrary to the previous arrangement.

"Instead, a cost of R130 million has been placed on the land in question. As a result, both parties are currently engaged on further discussions to pursue an amicable concession.

"Government has so far invested R240 million in the project, but remains confident that consensus will be reached in the best interest of both parties, including the citizens of the province," he concluded.

Lowvelder was unable to get comment from the Matsafeni Trust at the time of going to press.