Lesedi Municipality’s mayoral house in Bergsig Extension 9, Heidelberg, on which nearly R1.9 million in public funds was spent, has been put up for auction.
Visit somethingsdifferent.biz for more information.
The construction of the house on two municipality-owned stands earmarked for then mayor Lerato Maloka was abandoned in 2001, leaving the property at the mercy of thieves and vandals, who stripped it bare.
Last year, the municipality botched the chance to sell the property for R850 000 after failing to adhere to the potential buyer’s requirement that the two erven be consolidated into one.
According to the municipality, the decision to auction the house was taken through a formal council resolution following due consideration by the council.
“As part of ensuring responsible asset management and accountability, the council resolved that the property be disposed of through a public auction process,” municipal spokesperson Katleho Seaga said.
Asked how much the municipality expected to get for the property, Seaga said they did not have expectations beyond the determined valuation, as the outcome will ultimately be guided by the auction process itself.
Bouwe Wiersma, a local lawyer specialising in property conveyancing, said the municipality was likely to get not more than R700 000 for the property.
He said this meant R1.2 million of taxpayers money down the drain as the two houses built on the property are worthless.
“I think they will be lucky if they get R700 000. Whoever buys the property must also know that the risk will be solely on them as there could be no electrical certificate and it might not be registered with the [National Home Builders Registration Council],” he said.
A source in the municipality said the property was put up for auction to get rid of the scandal about the money wasted ahead of the local government elections.
“The hope is that the scandal will go away once the municipality has disposed of the property. This means there will be no accountability for the waste,” the official said.