Cape Times January 24, 2005

By Babalo Ndenze

Cape Town Mayor Nomaindia Mfeketo says she will not allow the transfer of prime land at Big Bay sold at a large discount to 17 black empowerment companies until she is satisfied that the correct procedures have been followed.

This follows disclosures that the land was not put to tender. Most of the companies have put the properties on the market and are asking considerably more than the purchase prices.

Mfeketo said she would not allow the land to be transferred unless she was satisfied the sale had been in accordance with "council policy and has fully complied with legal and contractual obligations".

The council was committed to promoting broad-based black empowerment in the city's economic and the property sectors, she said.

"Our procurement and land sale policies are designed to support this intention."

The sale of erven in Big Bay extension 5A might have compromised the intent of the council's policy, Mfeketo said.

She said a list of property developers had been compiled by a city official and Rabcav, council agent in the sale, without interference from the leadership of the council.

She had commissioned an immediate investigation to determine whether there had been any irregularities. A forensic auditor would investigate and report back in two weeks.

The DA said it found "breathtaking" Mfeketo's statement to a weekend paper that she had not known anything about the land not being put to tender.

She was "seeking to make scapegoats of officials who acted under instruction", said Ian Neilson, DA deputy caucus leader and ward councillor for Blouberg and Table View.

According to Neilson, the sale of the land, worth millions of rand, to the companies highlighted the improper decision by the council to grant erven to "hand-picked" friends of the ANC, among them the husband of a cabinet minister.

Mfeketo's spokeswoman, Leonora de Souza-Zilwa, said the mayor had known nothing about the "on-selling" of the land.

"It's not what was intended with the process. The mayor's swift action in relation to what's come to light shows that she's committed to transparency and good governance."

Neilson said 65 prime erven had been handed to the companies without other BEE companies or interested parties being allowed the opportunity to bid. Three or four erven had been allocated to each company.

"This occurred while a list of more than 500 names of parties interesting in purchasing Big Bay erven was available.

"These properties... are being offered on the market at prices considerably higher than charged by the city. The companies are each in a position to make a quick profit of at least R1 million without having taken any meaningful risk."