DESPITE an outcry by ward councillors and public criticism, eThekwini Municipality maintains that the rental agreement between itself and Doves on the Selborne Road property where the Stellawood Crematorium is situated, is market related.
In March this year, Berea Mail published an article in which Bluff ward councillor Duncan Du Bois claimed that the 8.028 square metre site was to be leased by the city to Doves (Pty) Ltd.at a rental of R13 078 per month. When broken down, Du Bois said this worked out to R16,20 per square metre, a rate he claimed at the time was 30 years out of date. Subsequently property valuers and agents contacted Berea Mail pointing out that the figures were still incorrect. After approaching Pat Acutt of Acutts who went over the figures, it was confirmed that the price was in actual fact based on a sum of R1,62 per square meter. “This is very low, and not full value. The amount should be double this, closer to R5 per square meter,” he said.
In response to the first article published, civic organisation, Save Our Berea, put forward questions to former eThekwini municipality spokesperson, Tozi Mthethwa, who failed to respond. Mthethwa, however, did respond to Berea Mail’s enquiry, saying that the matter had been investigated and it had been confirmed that the rental rate was found to be market related. “We therefore have nothing further to add,” she said.
Save Our Berea said its concern revolved around the issue that the rental agreed between the municipality and Doves appeared to be, on the face of it, ‘totally inadequate.’
“If that opinion is correct, then there would seem to be one of two answers. The first is that the persons dealing with this matter may have made an unfortunate but honest mistake. If that proves not to be the case then it is even more worrying in that it appears that the lessee has been favoured for some reason or another. If that is the case, then it would appear to point to a corrupt deal, although the City has made it clear that it is against corruption,” said Cheryl Johnson, co-founder of Save Our Berea.
She said Kevin Dunkley, a joint founder of the organisation, is a professional valuer, and was one of three people on a panel, who because of their expertise, were tasked on behalf of the city to value all the specialist properties in the General Valuation of 2007 and 2012. This task involved the valuation of the top fifty shopping centres, the oil refinery, the Westville Prison, King Shaka International Airport, the major hospitals, the sports stadia including Moses Mabhida Stadium, Kings Park and Kingsmead, among many other specialist properties.
“He has not made an inspection of the property concerned but happened to attend a funeral there in late 2014, and from that visit, cannot believe that a rental of R13 078 per month can in any way be market related,” she said.
Among the questions the organisation put to the city were whether the fact that the property was available for leasing had been advertised, or whether it had been an unsolicited bid from Doves (Pty) Ltd, whether the correct procedure was followed, who had decided on the market rental, who had negotiated the lease on behalf of the city and who had investigated the matter once concerns were raised and confirmed the rental was market related.
