City of Joburg probes how Sandton Gautrain station land was acquired
This is after the station's water was disconnected last month for allegedly being R8million in arrears.
Gautrain officials maintain they paid their water account in full every month to Cedar Park Properties, a company linked to Regiments.
Regiments has previously been accused of making unlawful payments of over R500m from the Transnet Second Defined Benefit Fund to Gupta-linked entities Trillian and Albatime between December 2015 and April 2016.
The Johannesburg Property Company said the city sold the land to Cedar Park Properties for R280m in 2006, but was only registered in the Deeds Office in 2013.
The City said a full forensic investigation has been launched into the sale of the land. The City, then under the ANC, issued a bond in favour of Cedar Park for R280m.
Mayor Herman Mashaba questioned why the City would finance the sale of its own land to a private company.
Mashaba also slammed the Gauteng MEC for Transport, Jacob Mamabolo, for claiming that a court ordered the City to restore water, saying it had reached an out-of-court settlement in which Bombela agreed to pay R120000 for the installation of its own meter. The water was restored on Thursday.
Said Mashaba: “It is unfortunate that MEC Mamabolo can openly, without shame, lie to people of South Africa. This was an out-of-court settlement proposed by Bombela, which the City accepted.
“We are unapologetic for cutting the water supply to the property. It is frankly unethical for a private company to expect the government to incur costs while providing it with free services. This, while our residents are expected to fork out their hard-earned money on a monthly basis,” Mashaba said.