*Article has been updated
Pretoria - The city stands to rake in billions of rand through the sale of at least 155 residential properties it inherited from the apartheid regime.
Located in various parts of the capital, some of the houses have been leased to councillors and senior officials in the metro, including the chief whip of council, Jabu Mabona, MMC for corporate and shared services Thembi Mmoko and chair of chairs Refiloe Kekana and senior official Motloung Mokoka.
The city’s group property management administers the houses, complexes and flats that have been rented out. The properties would be sold by public auction, and consist of rental stock houses, townhouses, duplexes and simplexes.
Blessing Manale, spokesman for mayor Kgosientso Ramokgopa, said the properties and lease agreements were inherited from the old dispensation.
The old regime allowed certain council employees and councillors to rent property from the city, Manale said.
The city also owns three blocks of flats in Sunnyside: Bridgeway Mansion, Michael Court and Sunnyside Park.
Manale said the city decided to sell the properties because this was found to be the best model for managing non-service related assets.
The city would ensure they were used to maximise revenue through rates, taxes and service charges.
Plans to auction the properties were included in a proposal presented to the council at its March ordinary sitting last week and subsequently approved.
In terms of the proposal, the city decided to sell those properties because they were expensive to maintain.
Most properties were ageing and in a poor state, it was stated.
They didn’t meet the building standard as set out by the National Home Builders Registration Council.
The proposal was approved through the ANC’s majority amid accusations that some top-ranking municipal officials and ANC councillors renting them had defaulted on their rentals and services bills.
Elmarie Linde, for the DA, claimed that first preference for selling properties would be given to tenants presently living in them.
Linde argued that since the sale would benefit current occupants, it was improper for ANC councillors to vote on the matter.
But, Manale disputed this.
“There was no conflict of interest relating to how the councillors voted for the resolution in council.
“In contrast, the vote by ANC councillors clearly demonstrated that they were committed in making sure that councillors did not receive any benefits outside of the agreed remuneration of public office bearers,” he said.
The proposed document stated that a councillor who wished to purchase a property should declare in accordance with the applicable provision in the legislation.
Manale said the city would raise a significant amount of revenue from the sales and continue to collect rates and taxes on them.
Properties would be offered for sale on auction with the valuation amount as the base value for auction purposes.
The city’s group legal counsel would be granted authority to issue power of attorney to purchasers to enable them to submit required building plans.
Potential buyers should expect to part with at least R700 000 to secure a two-bedroom house in Annlin, while another in Pretoria West, a townhouse, is valued at R350 000.
There are upmarket ones, including one in Hatfield that has been valued at R1.3 million.
There are tenants who opposition parties alleged were in arrears with their municipal accounts.
Manale said the city was not in a position to confirm the specific details of outstanding rentals.
“They have made payment arrangements and are subscribing to those credit agreements like any other consumer and user of municipal services.”
However, he said: “We can confirm that the municipal accounts of chief whip of council as well as MMC Mmoko’s are not in arrears.”
The DA had alleged that Mabona owed the city more than R500 000 in rentals, while Matsena was also believed to be in arrears, according to the party.
Kekana and Mokoka were also accused of not settling their municipal bills.
Pretoria News