MunicipalNews

CoE wants to terminate leases, and then ask for market related rental price

Some of the lessees have already indicated that they don’t have the financial means to secure maximum rental

Information received by the Advertiser suggests the municipality is proposing to terminate long-term leases for council-owned facilities, in order to amend the rental value to charge tenants.

Although the metro has not yet responded to our lists of questions, the DA claimed the targeted council-owned properties on the East Rand include those that are being used as old age homes, recreational parks and NGOs.

According to Clr Khetha Shandu, DA Chief Whip in Ekurhuleni, the City’s primary reason behind the proposed plan is to establish a market related rental price to charge tenants for their facilities.

“The local government resolved that where long-term leases are terminated, they must be advertised in a public tender with the aim of receiving better rentals for the metro.

“The DA in Ekurhuleni is greatly concerned that vulnerable communities are being targeted for political expedience after the City bullied through the proposal to terminate certain long-term lease agreements,” said Shandu.
He said the DA fought against specific lease categories being included in the termination process, with a specific focus on social properties.

The party is against termination of lease agreements for properties which offer a safe refuge, medical facilities, frail care, hospitalisation and recreational activities, and which enhances the value of the Ekurhuleni property.

“As the DA, we are concerned with how this item has appeared out of nowhere and we have fought tirelessly to ensure that properties in the category of social, cultural and recreational are not affected.

“Government healthcare facilities and clinics are struggling to assist the communities. Most of them have staff shortages, lack of equipment and are overburdened to the extent of being dysfunctional.

“By ruthlessly cancelling these leases, these recreational and social facilities will now need to tender to renew these leases. In addition, many have invested in upgrading the properties to better serve their communities.

“Every lease needs to be thoroughly interrogated and a blanket approach to cancel long-term leases is short-sighted. There can be no unilateral decisions to cancel leases if there has been no breach of contract. Preventing revenue loss and maximising income is a priority, but not at the expense of vulnerable people.”

Shandu pointed out that some of the long-term leases were entered into between the lessee and the municipality over 40 years ago.
“We will be escalating this matter to the Human Rights Commission and the Public Protector. We cannot allow the uncaring local government to trample on peoples’ rights enshrined in the constitution.”

Shandu added that the DA also questioned the legality of the Speaker of Council, Ald Patricia Kumalo’s decision to prevent the party from having a roll call on this item.

“A roll is called where there is a possibility that the adoption of the item could result in personal liability to councillors who support the adoption of the report. This issue will also be taken further.
“We will do everything possible to have this matter rescinded. Our most fragile and needy communities need a caring government, which looks after their needs. The DA will ensure this,” said Shandu.
We can’t afford
Some of the lessees have already indicated that they don’t have the financial means to secure maximum rental. These include the Boksburg Rugby Club, which is already struggling to keep afloat.
According to the club’s chairman, Willem Botes, said no one has approached them with the new proposed developments, but they heard that something related to lease agreements was brewing in council.
“Should something like that happen, our organisation will be hugely affected, as we cannot afford to pay more,” said Botes.
Exception
Meanwhile Ward 32 Clr Marius de Vos, said he hopes that recreational and social facilities will be exempted.
He is also skeptical about the metro’s move, as he suspect that it will be used to provide affiliated individuals and organisations the opportunity to grow their wealth at the expense of the vulnerable and poor.
The Advertiser approached the metro for comment, but no response was received at the time of going to press.

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