The ownership of Mpumalanga's R1-billion 2010 soccer stadium and 118ha of neighbouring land will be probed by a new board of trustees who were appointed by the Pretoria High Court on Tuesday.
Members of the Matsafeni farm worker community, who were originally granted the land in terms of a land claims settlement in 2003, spontaneously cheered and clapped hands following the ruling.
The stadium is being built on agricultural land originally ceded to them. Developers plan to use the stadium as the centrepiece for a new sport, entertainment and upmarket residential precinct in Nelspruit.
The government, however, illegally took the land in 2007 when it "bought" it for R1 without any of the necessary approvals from the Matsafeni beneficiaries or other interested parties.
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The court on Tuesday heard this land was extremely valuable as it was productive farm land.
The Bombela Stadium - one of the 2010 soccer stadiums - is being built on a part of the land.
Following the "purchase" of the land, the government tried to forcibly relocate the residents to a spot about 25km outside town.
The deal had been declared irregular by an independent forensic audit commissioned by the Mbombela Local Municipality.
Human rights lawyer Richard Spoor was appointed by the 883 members of the Matsafeni community to take on their plight and on Tuesday he applied to the court to remove the current trustees.
It was claimed that the trustees had fraudulently amended the trust deed.
It was further claimed that they utilised the trust assets for their own advantage and that they appeared to have misappropriated funds belonging to the trust for personal advantage.
Spoor said the trustees earlier entered into a sale of land agreement with the Mbombela municipality in which they "sold" 43ha for the purchase consideration of R1. "This is less than what one pays for a daily newspaper," he said.
He also accused the trust of failing to have financial statements prepared and of refusing to allow access to the books of account.
Carlos da Silva SC, acting on behalf of the community, told Judge Roger Claassen on Tuesday that "someone had to take charge of this mess". The judge agreed.
The parties agreed that the former trustees would be removed from the board and that three new trustees with special powers would be appointed. They will take control of all the assets of the trust.
They will investigate the management of the trust and look at all the agreements concluded in the past, including the R1 deal. They will be able to make new agreements and look after the interests of the Matsafeni community.
This order was met by jubilation in the courtroom, which was full of members of the aggrieved farming community.
- This article was originally published on page 2 of Pretoria News on May 14, 2008
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