Suspect’ business in Sandton Gautrain Station

The City of Johannesburg on 19 September took to the South Gauteng High Court to defend its decision to cut off the water supply to the Sandton Gautrain Sandton.

Proceedings, however, did not only centre on the R8 million unpaid utility bill owed to the City by landowners Cedar Park. Johannesburg Executive Mayor Herman Mashaba announced that the City would be launching a ‘full forensic investigation’ into the purchase of the land itself.

According to the City, in 2009 the Johannesburg Property Group, on behalf of the City, entered into an agreement with Cedar Park whereby a portion of the land would be sold to the property firm for R280 million. Mashaba noted there are two problems with the transaction.

“This land was only registered in the Deeds Office in 2013 [and] a bond was simultaneously issued by the City, in favour of Cedar Park, for the full purchase price of R280m. One must ask, why would the City ever finance the sale of its own land to a private company?”

The City added that since the bond agreement was established, Cedar Park had not made one repayment on its bond. “While this forensic investigation is underway, the City will consider its legal avenues to reverse what appears to be the irregular sale of this land at no benefit to the City whatsoever.

“The City cannot reconnect water to defaulting corporate customers who think they can bully the City into submission.”

Related articles:

https://www.citizen.co.za/sandton-chronicle/236461/city-defend-decision-cut-water-supply-sandton-gautrain-station-court/