Joburg Property Company: Profiting off city properties

Recent publicity about the Joburg Property Company (JPC) board is overdue but scarcely scratches the surface.

Now we know a tollgate cashier, a receptionist and someone with grade 11 have been appointed to the board.

The real story is not about a youthful MMC and her nepotistic appointments.

What lies beneath?

It suits JPC to have a pliant, inexperienced board. JPC’s chief executive was suspended in September 2020.

Seven months later, a new JPC board reinstated her, even though the special investigating unit found evidence that she and “other officials may be guilty of financial misconduct”.

In October last year, she was again suspended and the DA laid criminal charges with the Saps. Early this year, after mayor Mpho Phalatse was ousted, the CEO was again reinstated.

At the time, News24 reported: “For the past two years, missing documents, uncooperative employees, threats and intimidation have culminated in investigators being unable to finalise their probe.”

This is some background to the appointment of a new MMC and lightweight board members. They are no match for battle-hardened JPC heavies.

Remember, this is the entity responsible for city-owned buildings, including dozens in the CBD where fire and other regulations have been abandoned and many people have died. In addition to JPC’s past scandals, there are warning bells about others.

First is the planned R2-billion refurbishment of the metro building in Braamfontein. At least 20 000 staff will be “decanted” into adjacent properties.

This “decanting” will cost several hundred million rands. Given the trail of corruption allegations thus far, there is understandable concern about the scope for further malfeasance.

An inexperienced, unqualified board provides perfect cover, especially when councillors who should be conducting oversight, instead vote along party lines when conscience would dictate otherwise.

Another worry is the way JPC is handing over control of city-owned properties to connected business folk without going through proper processes.

Much of this is done through the mechanism of what JPC calls permission to occupy and build agreements (PTOBs) with Joburg City Parks and Zoo (JCPZ), without consulting elected ward councillors or their communities.

Touting a R1-billion partnership, JCPZ then, in turn, signs agreements with businesses, bestowing many rights despite a PTOB clause saying: “The user may not cede their rights under this agreement or lease the property. The user may not lease the property to anybody or allow anybody to use the property without following due process as prescribed …”

PTOBs do not meet the Municipal Finance Management Act requirements for public-private partnerships. Multiple legal cases are loading over different properties.

I have written formally to the city manager and other officials, submitted a question for written reply in council, and filed two Promotion of Access to Information Act applications.

All unanswered.

The central concern is this. Joburg is crumbling.

Service delivery is atrocious. The common excuse is lack of resources – not enough money.

Yet residents are continually asked to pay more for less.

In these conditions, it is unconscionable that certain individuals, corrupt or not, are making fortunes out of city-owned properties, at our expense.

It’s a further insult that they do so behind our backs