Draft property valuation roll labelled a ‘disaster’
"There are various reasons why we are not satisfied, including the way the roll was completed and the new rules regarding vacant land." He said they opted to engage with the municipality as good relations remain key.
POLOKWANE – A number of the city’s biggest property owners and developers have expressed their dissatisfaction with the draft property valuation roll.
Gerald Gouveia from the Networth Property Group said he was certainly not satisfied and has already engaged in discussions with the municipality through his attorney.
“There are various reasons why we are not satisfied, including the way the roll was completed and the new rules regarding vacant land.” He said they opted to engage with the municipality as good relations remain key.
Riaan Smit, on behalf of the BB Group, expressed concern too.
“Some properties have been valued at more than 10 times their actual market value, including the Standard Bank building. It is truly a farce. We are definitely going to object.”
Kholofelo Maponya from Matome Maponya Investments said the company had moved its headquarters from Polokwane to Centurion. He said he could see a trend to over-value in the city while decreasing values in rural areas and certain businesses in rural areas.
“Some businesses in Seshego do not pay the same rates as those in the city. I had to challenge several new valuations on properties and lodged objections. The methodology the new valuers used is not fair or constitutional in my view. They misread the law.
“Municipal rates go up and yet services deteriorate in the city. A certain percentage of money should have gone to the previously disadvantaged. There is no equitable distribution of the money. The municipality is using rates where they have been caught napping and we must pay for their mistakes.
He said the municipality must expand its base of rate payers.
“Polokwane is the hub of the province. When the city is dysfunctional, people will migrate. The municipality must increase its collection base, more people should pay rates. The moratorium on new development did not help either; development industry sustains 20% to 30% of the industry in the city and this caused a 30% job loss.”
Jannie Moolman from the Moolman Group confirmed the group was currently engaged in discussions with the municipality regarding the valuation roll.
“We are one of the largest property owners in the city. So far the reaction has been positive and follow-up meetings have been scheduled. We do not want to predict the outcome of the meetings as yet. The process has to run its course.”
Another property owner and developer, Schalk Dreyer said he had not received any notices about the new valuations yet. “My biggest worry, and that of other developers, is the new draft valuations policy.”
Owner and developer Hambis Khourthombelides said his group has lodged some objections.
“Overall, we are satisfied, but a lot of property developers have taken the municipality on, especially those with new properties.”
Michiel de Bruyn, an attorney dealing with the municipality on behalf of a number of developers and investors, said the general view is that this is a new roll and a new valuer. S
“So far, the valuers and the municipality’s aim is to set things right. Many properties are over or under-valued. My personal opinion is that the balance is not right and that a number of property owners will be carrying others in terms of rates and taxes.”
Tom Shearer from the Protea Hotel Ranch Resort said he was not happy with the valuation roll.
“We were just classified as a resort property after long deliberations with the municipality. We now will be paying the same as a business in Polokwane for the whole 700ha.There was no consultation done. I have worked hard over 50 years to build up the business. We employ 186 people. Policies should support people creating employment. The new roll will bankrupt me. I will certainly lodge an objection, as my business is in serious jeopardy.”
Property developer and owner Mark Mockford said his residential property’s valuation has gone up by 30%. According to him he has not received any notifications from the municipality about his commercial properties yet. “I am expecting a disaster,” he said.
“There is nothing that will entice anyone to invest in Polokwane. Nobody is interested in investing here any more. There is a moratorium on new development. I had to find work in Bloemfontein and consider moving to Johannesburg.”
