Pretoria - Six businessmen cut sorry figures in courtroom 4E on Friday after Pretoria High Court Judge Sulet Potterill dismissed their application to halt Tuesday’s auction of the Plastic View informal settlement by the City of Tshwane.
However, the court will hear another urgent application on Monday to interdict the city from going ahead with the auction pending a review.
The City of Tshwane is defending the matter, initiated by residents of the informal settlement, assisted by Lawyers for Human Rights.
The informal settlement in Moreleta Park is situated on one of more than 80 parcels of land that go under the hammer to raise an estimated R500 million to fund maintenance and infrastructure requirements, as well as basic services provision.
The businessmen, trading as Rakohe Investments, felt hard done by; they obtained an order from the same court last October setting aside the cancellation of their bid by the city for a mixed-used development at Plastic View.
Rakohe had submitted a bid for the establishment of a “new city” on the land about five years ago.
The bid was accepted by the city and funding was available, said Tshepo Mahlangu, of Rakohe Investments.
“We engaged with the residents and intended bringing them on board by way of setting up a trust fund to accommodate them in the new development,” he said.
“If we in the business sector can be sympathetic towards the residents, what stops a government from doing so?”
Mahlangu said the tender process was on the verge of entering a second stage, which involved negotiating for and signing the contract with the city. But the city cancelled the tender and sent a letter to the company to that effect.
Subsequently, the land was put up for auction and will be sold to the highest bidder in one of the country’s biggest land auctions which will be held at Summer Place in Hyde Park. Tshwane appointed The High Street Auction Co to manage the process.
Rakohe Investments went to court and was granted an order setting aside the cancellation of the tender pending negotiations.
Mahlangu said it was in the middle of the negotiations that the city decided to put the land up for auction.
He said this was in defiance of the court order, prompting Rakohe to return to court.
Their hopes were dashed when Judge Potterill dismissed the matter, saying the applicants failed to comply with the court regulations on urgent applications.
Placard-bearing residents of the informal settlement toyi-toyed on the pavement outside the court.
A few were in the courtroom and left soon after Judge Potterill delivered judgment.
They vowed to be back on Monday.
Mahlangu said they would also return for what could be the final bid to interdict the auction.
He said they were “extremely” disappointed, as the court failed to comply with its own decision, referring to the judgment to set aside the cancellation of the tender.
“This is not the end. We will evaluate and further consult on this matter. It has been four to five years of planning and negotiations, during which exorbitant costs were incurred,” he said.
Tshwane mayoral spokesman Blessing Manale said Plastic View land was illegally occupied and residents were there in terms of a 2012 court order.
He said the city was in an advanced stage of negotiations with Lawyers for Human Rights, on behalf of residents, to discuss available options when the land is auctioned.
“Our intention is to negotiate a resettlement plan to avoid a legal confrontation with the residents,” he said. “The overall benefits of the land sale will benefit the greater development needs of the people while resolving the current issues.”
Pretoria News