Cape Town – Property developer Growthpoint is considering its options after the City's planning tribunal found it had building magnitude rights of 17 500m² and not 46 000m² at the controversial Site B on the Foreshore.
Last year, activist organisation Ndifuna Ukwazi raised the alarm on Growthpoint acquiring building magnitude rights of 46000m² at the site at the price for rights of 17500m², as the latter measurement was stipulated in the city council’s prospectus as the site’s bulk rights.
NU had charged that if Growthpoint had rights of 46 000m², the City would have lost R140 million.
Following the tribunal’s finding, Growthpoint’s head of marketing and communication, Nadine Kuzmanich, said yesterday: “There are a number of options available to us, so at this stage we’re still considering the way forward.”
Ndifuna Ukwazi’s Mpho Raboeane said: “In its application, Growthpoint had argued that they didn’t need to apply for additional rights to develop Site B as they already had 46 000m² as a result of the auction.
“The City planner recommended the refusal of Growthpoint’s application because it didn’t comply with the requirements of the Municipal Planning By-Law, and it was based on an incorrect assumption of the current development rights.”
Following the compilation of a forensic report after an investigation into the sale of the land to Growthpoint, the City said there had been no irregularities in the transaction.
Ndifuna Ukwazi has insisted that the report be made public.
“Making the report public goes to the heart of public accountability. After many inconsistent narratives issued by the City in defence of the auction, why would the City not release a report that it claims clears them of any wrong-
doing around this sale? What is the City hiding?” Raboeane said.
Meanwhile, Good Party’s representative in the legislature, Brett Herron, has asked the Office of the Public
Protector in Cape Town to probe the sale.
“If profits are made from the sale of valuable assets belonging to the state, those profits must accrue to the citizens, not private companies.
“Besides determining the legality of the deal process, we hope that the public protector - who is already investigating allegations of massive rates discounts afforded to Growthpoint by the City of Johannesburg - is able to establish the true nature of the relationship between the DA and the giant property company,” Herron said.
The City would co-operate during any investigation by the public protector, City spokesperson Luthando Tyhalibongo said.