City of Mbombela property valuation discrepancies questioned
A number of seriously undervalued affluent properties in Mbombela, some of which owned by the ruling party, were recently brought up and questioned.
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Serious questions have been raised about the accuracy of the current City of Mbombela (CoM) valuation roll that will be used as a basis to determine the rates and taxes for property owners for the next five years.
Going through the valuation roll with a fine-tooth comb, Lowvelder uncovered a number of seriously undervalued affluent properties.
One of the property owners is the ANC, the ruling party in the province since 1994.
During the investigation, Lowvelder discovered that the two properties in Van Rensburg Street where the ANC head office, and the offices of the ANC Women’s League and the ANC Youth League are situated, have been undervalued by hundreds of thousands of rands.
One of the kickers discovered was the property belonging to a former golf caddy at Mbombela Golf Club, and current well-known South African businessman and philanthropist Robert Gumede. He is the founder and executive chairperson of Gijima Technologies. With a keen interest in diversified businesses, Gumede heads the Guma Group of Companies, which houses 12 000 employees.
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His bright white multistorey landmark mansion, built in Sonheuwel on a granite hilltop overlooking the city, which has been nicknamed ‘the Ice Palace’, is the property in question.
The current valuation roll, which has been drawn up and signed off by the CoM valuator Tsietsi Madonsela as a true valuation of property, determined that its value is R50m. However, the luxurious mansion, with at least three other houses and outbuildings, has a conservatively estimated market value of R350m.
The two stands are just less than of 26ha in size.
The ANC’s two properties are, according to the CoM valuation roll, valuated at a combined amount of just over R7.8m.
However, the estimated market value of the two properties is around R20m.
The property on the corner of Nel and Van Rensburg streets where the ANC headquarters is located (erf 60) is valuated at R5.14m, and the property next door where the two leagues’ headquarters are (erf 422), is valuated at R2.7m.
However, a search by Lowvelder for documentation at the Deeds Office showed that erf 60 had been bought by the ANC in February 2014 for R11.6m and erf 422 was purchased in December 2015 for R8.3m.
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Jospeh Ngala, the CoM’s spokesperson, confirmed that the current valuation roll is based on the market value of any property. “The basis of valuation is the determination of market values of properties as listed on the valuation roll as approved by the council on July 22, 2022, and the new one will be effective from July 1.”
On Lowvelder’s question about what happens if someone (a property owner) sees their property valuation is lower than it should be, and whether they are obligated by law to bring it to the municipality’s attention, Ngala did not commit or give a clear answer.
“Any person who may so wish to lodge an objection is allowed to register an objection in a prescribed manner,” he said.
According to him, all properties, even those belonging to the national or provincial government, as well as any state-owned entities, are ‘rateable’.
The valuation roll is currently open for objections until the end of May.
The current valuation roll, which is available for inspection at the municipal offices, shows increases of properties of between 24% and 28%.
“The CoM has published its latest general valuation roll for the period July 1, 2023, to June 30, 2028, for inspection and lodging of objections as from February 27 to May 31,” Ngala had previously said.
The objection form can be downloaded from www.mbombela.gov.za/govobjectionforms.html.