Tafelberg sale proceeds earmarked for provincial offices

Cape Town-160303 - Domestic workers, working in Sea Point, marched from Sea Point Pool to Tafelberg Remedial School, yesterday, in demand for affordable mixed-income housing. In pic is Tafelberg School-Reporter-Zodidi Dano-Photographer-Tracey Adams

Cape Town-160303 - Domestic workers, working in Sea Point, marched from Sea Point Pool to Tafelberg Remedial School, yesterday, in demand for affordable mixed-income housing. In pic is Tafelberg School-Reporter-Zodidi Dano-Photographer-Tracey Adams

Published Jul 25, 2016

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Cape Town - Lobbyists who have been calling for the Tafelberg High School site to be used for affordable housing say they are disappointed after learning the sale proceeds have been earmarked for provincial offices.

Weekend reports allege that Transport and Public Works MEC Donald Grant lied about where the proceeds of the Tafelberg sale would go.

The site was sold to the Phyllis Jowell Jewish Day School in February for R135 million.

Grant reportedly said the proceeds would enable the province to cross-subsidise projects for the poor.

But Ndifuna Ukwazi, a support organisation to Reclaim the City, said they have evidence the province had last October earmarked the proceeds from the sale of the development for a mega-project in the CBD's Dorp Street.

Ndifuna Ukwazi published a collection of around 700 leaked documents from the provincial government. The documents include internal e-mails, memos, meeting minutes and technical reports.

They say the #WCLeaks provide an unprecedented insight into “malfeasance” of the provincial government’s approach to managing public land.

Among other revelations, the #WCLeaks reveals the Western Cape Department of Transport and Public Works sold the Tafelberg site with the intention of diverting the proceeds of R135m to help pay for a R1.2 billion office - the Dorp Street Public-Private-Partnership (PPP) mega-project.

Ndifuna Ukwazi said the Dorp Street PPP was a proposed high rise office block which is intended to house the Western Cape Education Department.

They said in a statement that the revelations in the documents proved the province sold the site to “generate a quick cash flow to divert into an unaffordable office mega-project”.

“Province did not have any intention of reinvesting the money in projects to help uplift poor communities, and statements to that effect amount to lies.

“These #WCLeaks bolster the already compelling case for Premier Helen Zille to #StopTheSale of Tafelberg and to reserve the site for affordable housing.”

On Sunday, Reclaim the City, an organisation that has been calling for affordable housing to be built on the site, released a statement expressing their disapproval.

They said they were told the proceeds would be spent on infrastructure in poor communities.

“Apart from the fact that there are also poor people in Sea Point who needed the site for housing, we must conclude that Province lied to us about why it sold Tafelberg.

“As with many times during the last few months, it has been shown that Province is running away from the truth. They were playing with people’s minds. They were covering up.”

The group further said they found it unacceptable the provincial government could sell public land, “land that belongs to the people of the Western Cape with the intention of using the money to build a fancy new office building”.

Reclaim the City called on Zille to provide a plan for affordable housing in the inner-city and also to investigate Grant’s “lies”.

Grant referred queries to the department’s spokesman, Byron la Hoe who said claims that Grant lied about where the money would go were inaccurate as these were made prior to the national government’s decision to introduce budget cuts across the public sector.

He added that departments were required to reschedule money, in order to meet service delivery targets.

“The money of the Tafelberg sale would go towards a possible Public-Private-Partnership to own the Dorp Street block to enable the Provincial Government to consolidate the Western Cape Education Department offices and ensure that after a period of time, they are located in owned-accommodation versus leased accommodation.

“It is generally more efficient and cost effective for the provincial government to locate its departments in owned accommodation.”

La Hoe added the Dorp Street PPP was still in the procurement phase and an updated financial model was required.

Zille’s spokesman, Michael Mpofu did not respond to repeated queries that were sent to him at the time of going to print.

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Cape Argus

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