Sapoa concerned about council

Posted On Monday, 08 September 2003 02:00 Published by eProp Commercial Property News
Rate this item
(0 votes)

Gauteng's South African Property Owners' Association (Sapoa) members are increasingly concerned about the "chaos" prevalent at the Johannesburg City Council.

Sapoa CEO Neil GopalAccording to Brian Kirchmann, CEO of Sapoa, members fear that the current state of affairs will scare off foreign investment. "Sapoa, while not accepting the status quo, are aware of the pitfalls awaiting developers, but international investors - faced with the uncertainty and inexplicable delays in registering transfers and obtaining clearances - simply take their money to more organised countries.

"Similarly, emerging entrants to commercial property do not have the capital to 'wait out' the never-ending inefficiencies of setting up new township development," he said. A prominent property lawyer - who did not want to be named - said: "Major developers can no longer obtain clearance figures, rates or endorsements amidst ever-increasing difficulties.

"The city council is in a complete state of chaos, where there is no commitment to clients, just lip service. "At present, it is estimated that as much as 80% of commercial and residential rates may be in arrears due to the billing chaos. "At this point, upliftment becomes impossible and the hope of encouraging previously disadvantaged developers dwindles even further.

"Part of the problem is the lack of training in council staff ethics, to make them understand that they are paid by and working for the public and that they have a duty to log in details of developers' plans; establish new stand values and rates and accurately enter purchasers' details onto the computer," he said.

"For international investors, South Africa is attractive because it has first world banking, telecommunications and a legal system, but the lack of confidence in the local government service makes it increasingly uninviting." According to Kirchmann, Sapoa is willing to assist.

"Sapoa does not wish to point fingers at the council, but wish to facilitate solutions that can aid both our members and the broader commercial property sector in South Africa. "We have the expertise and willingness to set up viable solutions and await council response," he said



Last modified on Tuesday, 10 June 2014 12:00

Please publish modules in offcanvas position.