BARBERTON – A locally based consortium has threatened to report Umjindi Municipality to Public Protector Thuli Madonsela, regarding the selling of the Emjindini Small, Medium and Micro Enterprises (SMME) Centre.
Thabo Mkhabela, one of the members of Mkholo Property Developments, said council didn’t act transparently during the sale of the piece of land.
He said their company also bid for the piece of land where the SMME centre is situated, but their offer was not considered.
In an advertorial in the Barberton Times edition of December 11 council clearly stated it was offering the land to Vusi Mankolongwane Nkosi.
Part of the notice read that there were reasons why the bid should not be subjected to the normal competitive bidding process.
These included that the service offered by Nkosi was exceptionally beneficial and cost advantageous to the municipality because he proposed to reconstruct the vandalised SMME centre and donate it to the municipality.
Council further claimed that Nkosi also intended to build a shopping centre that would increase the revenue base of the municipality.
It said the potential benefits were that there would be an additional income generated for the council, the damaged SMME centre would be reconstructed at no cost to the municipality and the unemployment rate would be reduced.
The centre was vandalised in July 2012 after it was burnt down during the violent protests that engulfed the area. This was after the regional and local ANC leadership used it to hold its meetings following protest.
Council has since failed to reconstruct it. At the time it was destroyed, the centre, which was used to provide residents with various skills to contribute to the mainstream economy of the town, the council has leased it to two local non-profit organisations (NPOs), namely Mphilende Training Solutions and Buhle Buyeta Youth Development.
Both NPOs stated that the damage to their equipment caused by the arson was estimated to be more than R1 million. Material that was lost by Mphilende, which had enrolled 15 students in a 12-month course, was estimated at R900 000.
Buhle Buyeta, a youth organisation funded by the department of social development, provided basic computer skills, career guidance, life skills and assisted residents to access vacancies in the government and private sectors. It lost all the documentation it had to submit to the social development department for funds to enhance the centre. It had received an amount of R450 000, which was invested in the equipment that was destroyed. Both NPOs had no insurance.
Umjindi council received an alleged R1,3 million from the insurance company, South African Special Risks Insurance Association, which it apparantly used for its own purposes.
Mkhabela said they requested the municipality to act in an open and trans-parent manner and provide the community with the details of offers that had been made in respect of the SMME centre. “It must follow the legislated process in order to bring fairness to any sale that it undertakes. We have nothing against the purchaser. What we understand is that the municipality had previously sold the site next to the SMME centre. Nkosi has failed to develop that land for a period of about 25 years. How is it that privately owned land can be sold to Nkosi, land which he will possible not be able to develop?”
Nkosi had previously confirmed to this publication that he owned the land adjacent to the centre. He said he had made a proposal to the council about obtaining the SMME centre. In the Barberton Times edition of December 5, 2012, Nkosi said council was considering his proposal but there had been nothing concrete at the time.
Umjindi spokesman, Sam Jele, who declined to comment on the matter, had previously said the council had approved the development proposal of Nkosi subject to it obtaining the valuation price of the land for the cost of the developer and rezoning to be done in line with town-planning procedure, including invitation for objections.
Attempts to get comment from Nkosi proved unsuccessful at the time of going to print.
