Amathole finally decides to move

Chris Magwangqana
Chris Magwangqana
The Amathole district municipality (ADM) is expected to finally move to new headquarters in Stutterheim.

Council has instructed municipal manager Chris Magwangqana to approach National Treasury for funds to finalise the move, which is expected to happen soon.

It is about four years since Buffalo City municipality was granted metro status. The change meant that ADM, as a district municipality, should no longer have its headquarters in BCM.

Before Buffalo City became a metro, it was one of eight local municipalities under the ADM’s jurisdiction.

A report tabled at an ADM council meeting last week reads: “Council notes the update on the office move to Stutterheim. Council further approves the municipal manager to approach Treasury for approval on the loan funding.”

A report tabled on July 22 indicated the municipality had to move to new offices not only because their current offices were outside their jurisdiction, but also because most of the offices were rented and spread over different buildings.

“This is not conducive to a good working environment. The public also found it difficult to get parking and the buildings were not disabled-friendly,” the report reads.

Questions sent to ADM were not answered at the time of writing, but the report tabled during the May council meeting indicated the amount the municipal manager had to get approval for was on a capital amount of R200-million. q

“The illustrative financial option received from three banks is for a loan of R200-million over loan terms ranging from 10 to 20 years,” the report said.

The planned move by the ADM from its initial Caxton House building offices in the East London CBD to Stutterheim has not been without drama.

The move to its current temporary offices suffered delays when two influential Eastern Cape businessmen went head-to-head in court over the multimillion-rand ADM tender to lease building space.

In January 2014, the ADM advertised the tender in which it sought to lease between 10000m² and 15000m² of “interim” office space, with about 500 parking spaces, in central East London within 5km of the city hall for just three years.

The Dispatch reported then that the tender was urgent and the bid document gave bidders just 15 days to put together their bid.

The winning bid of an R80-million rental contract over three years went to Saldosol Investments under the directorship of influential businessman Jean du Plessis.

However ESDA Properties, directed by Dean de Villiers, cried foul when it lost in the bidding process after offering its services for R39-million less.

ESDA Properties accused the ADM of rigging the tender process.

The court later dismissed the claim, and ADM moved to its current offices in Chiselhurst late last year. — siphem@dispatch.co.za

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