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Nicole Barlow

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THE JOHANNESBURG PROPERTY COMPANY’S GRACE AND FAVOUR LAND DEALS In the final instalment of my series on the foreign takeover of what was once an upscale, leafy suburb neighbouring the affluent Bedfordview enclave in the East Rand and Kensington in Johannesburg, we can now more openly explore the potential corruption linked to Helen, the CEO of the Johannesburg Property Company, and the suspiciously low-priced fire sales of valuable city-owned land in Johannesburg. One likely explanation involves the extent to which these and other properties have been offloaded under dubious circumstances, when they should never have been sold at all. A recurring theme is the acquisition of properties that serve as key transport hubs. The suspicion is that the entities behind these purchases, including the Erf 133 properties, are biding their time, expecting Johannesburg will eventually be forced to buy them back—at vastly inflated prices. This is exactly what's unfolding with the Jabulani Property and Calgro M3. A small portion of the Erf that was initially sold for just R1.00 is now allegedly being sold back to the council for R45 million. Similarly, the Chinese owners of the Bruma property, who recently evicted the taxis using the land—with no alternative location for the taxi rank—are now lying in wait for the City of Johannesburg to make them an offer they can't refuse. It is important to understand that Johannesburg Property Company does not have the authority to dispose of land at will and that rules do apply, even to Helen Botes. The authority under which Johannesburg may dispose of land derives from its supply chain management policies; in particular, its “Supply Chain Management Policy: Land” (“SCMP:L”). This is under the auspices of the Local Government: Municipal Finance Management Act, 2003 (the “MFM Act”) The copy of the SCMP:L, which I have been able to locate, is, in fact, unsigned, so its authenticity needs to be established. However, the City of Johannesburg must supply an authentic copy, valid as at the relevant dates (from 2010 onwards). Assuming that my copy is authentic, the following is of relevance: 1. The thrust of the SCPM:L is to ensure that the Johannesburg land is disposed of in a fair and transparent manner. 2. “Available vacant land” is defined in the SCMP:L as “land not necessary to provide minimum municipal services, including but not limited to gardens, parks and similar facilities…..” 3. Section 7 (2) (a), which provides that the accounting officer (the Municipal Manager of Johannesburg) may not delegate his or her power and duty to make an award exceeding R 10 million; 4. Section 12 (1) (b), which states that the alienation strategy should “ensure that irreplaceable land is not lost to COJ (City of Johannesburg) or the public, taking into consideration the principle that COJ land should not be sold, but should rather be made available for use or development purposes by means of long-term and short-term leases;” All of this, of course, hinges on the condition that the land actually generates revenue for Johannesburg, rather than being handed out in grace-and-favour deals to foreign investors. With the taxi rank now forced to use the main road through Bruma for parking, creating a significant traffic issue, and as complaints continue to pour in about the taxis clogging the road, the theory gains traction: it’s only a matter of time before the City of Johannesburg will have to approach the Chinese owners and buy back the land to accommodate the planned transport hub in the area. I reached out to the Johannesburg Property Company for details and comments regarding the alienation of Erf 133 in Bruma. Specifically, I asked whether the City of Johannesburg had indeed been paid for the land, requested evidence of the payment, and inquired about the total amount received and any outstanding balances.... 1/2

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