Durban - A Durban High Court judge has joined the chorus of criticism against the government for housing poor people in sectional title schemes which they cannot afford.
The folly of the policy - in which hundreds of people, many old, unemployed or living on social grants were given flats in high-maintenance-cost, high-rise buildings in Durban - has been highlighted in several high court cases, one in which a court-appointed administrator of two buildings is seeking to hold the city responsible.
Earlier this year The Mercury reported on yet another eviction application brought by administrator Andre Grundler against 63-year-old domestic worker Ntombi Joyce Khanyile, which resulted in her losing her flat in Elwyn Court in Mahatma Ghandi (Point) Road because she owed R150 000 in unpaid levies.
Grundler - who is despised by some residents of Elwyn Court and Flamingo Court - says the Sectional Title Act ties his hands and as the administrator who has stepped into the shoes of the board of trustees of both buildings, he has no choice but to enforce levy payments.
In the latest matter, Grundler applied for a five-year extension of his tenure at Elwyn Court, which was fiercely opposed by 21 owners (representing 15% of owners) who claimed he had done more harm than good since his initial appointment in 2010.
They either wanted a new administrator or a board of trustees set up.
In her judgment handed down on Monday, Durban High Court Judge Mokgere Masipa noted that out of the 21, 18 were in arrears with their levy payments, “which means they have limited rights” and were not entitled to a voice in the application, nor vote for trustees or serve as trustees.
That left only three opponents “who clearly did not represent the majority of owners”.
She said when Grundler was appointed, he was faced with two competing boards of trustees with parallel managing agents, massive rates arrears which, as a result, meant there was no electricity in the common areas of the building.
“He engaged managing agents, consolidated six bank accounts and conducted a detailed levy analysis which showed owners owed about R1.75 million. He introduced a payment arrangement where people could pay off what they owed over 24 months. Some took advantage of this, but the majority carried on not paying.”
The Judge said he had also engaged with the city’s Better Buildings Task Team to start a rehabilitation process, but these negotiations had broken down when he had launched his court action against the city, seeking redress at the similarly-placed Flamingo Court in Umbilo and a possible dismantling of the sectional title scheme there.
Eventually the owners in arrears dropped from 76% to 44%. But the amount owed increased to R3 million.
Those opposed to Grundler say he was supposed to establish a working committee, not appoint “expensive managing agents”, and he could have saved money in other areas.
Grundler denies this. He says he has made unpopular decisions.
“But he says the only option, if people do not pay, is to sell off their units to recover what they owe,” Judge Masipa said.
Regarding argument that Grundler had “failed to protect the poor”, she said Grundler could not be blamed for the arrear levies.
The Mercury