Dodgy land deal saga deepens
The Department of Human Settlements’ spokesperson, Freddy Ngobe, said it is the department’s considered opinion that the land acquisition was above board.
WHITE RIVER – More details have surfaced regarding dodgy land deals in the province, with the townspeople up in arms over the inflated prices forked over for the property.
In particular, portions of the farm 65 Waterval, JU were purchased in deals dating back to 2007, which included portions two, five and four which were later sold to the Mpumalanga Economic Growth Agency (MEGA) for a collective R85 million.
These transactions were concluded over a five-month period and the land in question held a market value of R20 million, netting those involved in the acquisition a profit of R65 million.
ALSO READ: Alleged NLM fraud probe ongoing
The purchase was made ostensibly to build about 4 000 low-cost housing units to house upwards of 9 000 people. Presentations were made to White River residents by Robert Burwise, who represented Lusito Development Specialists (LDS).
It would be known as Extension 71, but locals opposed the new development, citing a lack of capacity in town, especially with regard to an already overburdened sewerage works, water and electricity supply issues, among others.
LDS was owned by Patoka Trading CC with Burwise, Harrington Sizwakhendaba Dhlamini and Patrick Donald Chirwa listed as members.
The three are co-accused in a recent court case over similar shady transactions that include former minister of state security, Bongani Bongo, and six other accused.
ALSO READ: Former minister Bongani Bongo and his brother granted bail in Nelspruit court
An in-depth look at the Waterval purchase revealed that portion two, which is 24,13888 hectares, was registered on August 17, 2007. It was valued at R350 000 at the time it was registered to Uitsig Boere CC and purchased by the Mpumalanga Housing Company for R25 million.
Portion five, at 7,6800 hectares, was registered on May 27, 2008 and held a market value of R380 000 when it was owned by Farm Waterval Prop Inv Pty Ltd.
This portion was purchased by Shadrack Josiah Mnisi for R420 000, transferred to Siphiwo Agnes Mnisi and sold to MEGA for R4 224 000. The last one, portion two, at 57,9913 hectares, was registered on August 17, 2008, valued at R350 000 at the time it was registered to Uitsig Boere CC and purchased by MEGA for R25 million.
ALSO READ: Dodgy land deal netts a cool R19 million
The Mpumalanga Housing Finance Company purchased 102 hectares of land in Hazyview, just east of the proposed Extension 71 site at an average of R333 000 per hectare, totalling R33 909 000, at almost 10 times the market value, netting the sellers huge profits.
To date, the land is unutilised and no developments, low-cost housing or otherwise, have been made on it.
Similarly, another proposed development that was included in then premier David Mabuza’s State of the Province Address on February 27, 2015, mentioned the construction of a cultural hub that would “ensure that opportunities for private sector investment are explored”.
Although the land was purchased for the proposed cultural hub, no developments have commenced on the site either.
ALSO READ: Exam proceedings disturbed by protest at University of Mpumalanga
At the time of going to press, MEGA had not responded to enquiries about the procurement processes involved in the White River land purchases.
After Lowvelder reported on a similar land sale in Barberton last week, enquiries were sent to the City of Mbombela Local Municipality regarding the irregularities surrounding the purchase of Biggar Farm.
The spokesperson, Joseph Ngala, directed the newspaper to the Department of Human Settlements. Ngala said, “The new municipality never had an item before council about this matter.
ALSO READ: Payment deadline for Eskom account looming
“We still maintain that you speak to this department as they are the custodian of acquiring land for human settlement purposes and the implementation of such projects.”
The Department of Human Settlements’ spokesperson, Freddy Ngobe, said it is the department’s considered opinion that the land acquisition was above board.
He indicated that it would provide a comprehensive response to Lowvelder’s enquiries about the Biggar Farm purchase that will be available in next week’s edition.
