Crackdown on corrupt leases

Nxesi appalled at 99-year agreements asking R5 a month rental

Public works minister Thulas Nxesi
Public works minister Thulas Nxesi
Image: File

Public works is reviewing all its lease agreements with private property investors to bring them up to market value.

Public works minister Thulas Nxesi says the state is being ripped off, and supporting documents for some leases are nowhere to be found.

Nxesi said his officials were appalled to realise that some business owners were paying as little as R5 rental a month.

“You’d be shocked that there are people who have been leasing land, some it farms, some are sites or restaurants and, shockingly, we discovered that people have leases for 50 to 99 years at R5 a month. This is very serious,” he said.

“They have a lot of these restaurants in your municipalities but where are the agreements? Where are the leases? It is shocking what we are discovering,” Nxesi told the Dispatch.

“That is why we are reviewing all the leases and you must help us to review them. You must also help us so that government property does not go missing. Help us ensure that what belongs to South Africa is for the benefit of all South Africans.

“We don’t want to take things from even a white person to a black person illegally because theft is theft.

For any harbour to exist, you need to start with basic infrastructure. So this financial year we will have to finalise basic designs such as your slipways and your jetties, just plain access so that your small vessels and small ships are able to dock and launch, park and go

“But taking municipal property and channeling it to private hands for your own benefit is also theft. As long as such an exchange is not for the benefit of all ratepayers it is illegal,” said Nxesi.

He was addressing a two-day investors’ summit, which started at Hemingways Hotel in East London yesterday.

Also present were mayors of coastal towns including Buffalo City mayor Xola Pakati and Port St Johns mayor Nomvuzo Mlombile-Cingo, as well as senior government leaders like head of provincial Treasury Bongani Gxilishe and EC Parks and Tourism Agency CEO Vuyani Dayimani.

The minister also announced that plans to establish new small harbours – in Port St Johns, Gonubie in East London, Port Nolloth in the Northern Cape and Port Edward in KwaZulu-Natal – are all at an advanced stage.

Nxesi said the plan to revitalise Port St Johns, which was initiated more that five years ago, included increasing the capacity of the harbour, and also the construction of a small precinct to accommodate government departments in Port St Johns.

He said the precinct was meant to house several key government offices for home affairs, labour, municipal offices and offices for the provincial social development department.

However, when President Jacob Zuma redeployed Nxesi to the department of sports in March 2017, the project stalled.

“It became clear that we do not have a common vision because when I left public works, I don’t know what happened but it seems as if things did not take off in Port St Johns,” he said.

President Cyril Ramaphosa re-appointed Nxesi back to public works in February.

“Now I am back. I am in serious discussions with that [PSJ] municipality. The mayor has committed that we are going to allow our teams to work together and move.

“One of the things we were targeting was to develop that harbour and develop tourism. It was more about reviving the harbour because the harbour is not deep enough but it remains very attractive,” said Nxesi.

The department’s deputy director general of small harbours development, Samuel Thobakgale, told the Dispatch yesterday that the plan to have small harbours in Port St Johns and Gonubie were at an advanced stage.

“We are at an advanced position in both projects. The province, together with municipalities, have already done the design and the feasibility studies.

“We have now agreed with both the province and municipalities concerned that we can take it from there. But you would have noticed that for any harbour to exist, you need to start with basic infrastructure.

“So this financial year, we will have to finalise basic designs such as your slipways and your jetties, just plain access so that your small vessels and small ships are able to dock and launch, park and go,” said Thobakgale.

The initial investment on basic infrastructure is estimated at R30-million.

“So that next year (2019-20), we will be able to put in basic infrastructure. If you want to stimulate business, you will need to put up such basic infrastructure,” added Thobakgale.

The event ends today.

subscribe

Would you like to comment on this article?
Register (it's quick and free) or sign in now.

Speech Bubbles

Please read our Comment Policy before commenting.