Stellenbosch Municipality is at the centre of allegations about improper public property leasing and management processes. Provincial authorities have since initiated an evaluation of these procedures. PHOTO: Ella Bosman
The Western Cape department of local government is investigating Stellenbosch Municipality’s property leasing processes. This comes after the review and rescission of a number of leases for municipal-owned properties was tabled at a mayoral committee meeting on 25 March.
The assessment was announced by the department on 31 March in a statement that outlined that they had “conducted a preliminary investigation after receiving complaints regarding the non-compliance with legislative requirements governing the leasing and disposal of municipal properties by the [DA-run] Stellenbosch Municipality.”
Wouter Kriel, spokesperson for Anton Bredell, MEC for local government, environmental affairs and development planning confirmed that the assessment was being undertaken.
“The provincial minister was informed of several allegations concerning possible non-compliance by the Stellenbosch municipality,” Kriel told SMF News. “Consequently, the minister requested the department of local government to conduct an assessment of these allegations based on the information currently available.”
Kriel added that, based on preliminary findings, the assessment has been referred to the provincial treasury, which falls under the provincial DA administration. “In the event that serious malpractice or maladministration is identified, the matter will be referred to the appropriate investigative authority for further investigation,” he said.
Under the Municipal Finance Management Act, any lease of municipal property must go through two key steps: it must be approved by the full municipal council, and it must go through a competitive bidding process, meaning that the opportunity has to be advertised publicly, so that multiple parties can apply fairly.
The allegations against Stellenbosch Municipality are essentially that some leases were granted without one or both of these steps being properly completed.
The extent of the procedural failure becomes clear in the mayoral committee meeting agenda for 25 March, which revealed that the non-compliance was not a recent oversight, but stemmed from a problem dating back to at least 2022. Stuart Grobbelaar, Stellenbosch Municipality spokesperson, confirmed that there have not been other cases reported since then.
Point 4.2 on page 198 (of the subsection 7.3.2, titled, “Review and rescission of several in-principle approvals to lease municipal owned properties”) of the agenda suggests that the municipality unlawfully allowed competitive bidding to be sidestepped, and that a 2022 delegation giving the then executive mayor, Gesie van Deventer, power to approve certain leases without full council sign-off was itself unlawful.
It reads: “The delegation given to the executive mayor in consultation with the executive mayoral committee to decide on the disposal of municipal owned property for a period less than 10 years is in contradiction with the Municipal Finance Management Act. This delegation was created and accepted by council in the updated System of Delegations in June 2022.”
In correspondence with SMF News on 19 April, Van Deventer, who served as executive mayor when the delegation was created in 2022, denied any wrongdoing, saying that “there was no corruption, no benefit to any councillor” and that council policies were followed throughout. She added that all decisions were “absolutely transparent, with legal input and public participation”, pointing to the municipality’s clean record with the Auditor-General as evidence that governance processes were sound.
The evaluation process now involves provincial treasury and legal services, with the potential for a full investigation if evidence of maladministration is found. PHOTO: Ella Bosman
When opposition councillors in Stellenbosch Municipality were asked for their opinions on the impartiality of the investigation, they told SMF News the following:
“Once an investigation is done, we would be able to interact with the investigation and raise concerns whenever they are needed. If we think that the investigation is not impartial as expected, we would again seek for another directive which the council would decide. Do we need a second opinion [on] the investigation?” said Ayanda Tomose, an ANC ward councillor.
“Obviously it is not ideal [to have a DA-led investigation] as there is always the issue of conflict of interest but once again, let us not pre-empt the investigation or its findings,” said Robin Hendrikse, GOOD party councillor.
Municipal properties, which can include community spaces, clubs and public facilities, are legally required to be leased or sold through transparent and competitive processes. Allegations that these procedures may not have been followed in Stellenbosch have raised questions about the validity of certain agreements. PHOTO: Ella Bosman
In response to questions from SMF News, Grobbelaar, said all lease contracts are “handled in a transparent and accountable manner, strictly in accordance with the official policy of the council”.
Grobbelaar described a current process through which properties are independently valued, advertised for public comment, and reported to council through formal quarterly reports, adding that “no councillor or staff member derives any personal benefit from these processes”.
The municipality strongly denied allegations of corruption, calling them “defamatory” and “motivated by political opportunism”, and pointed to its record of clean audits from both internal and external auditors, including the Auditor-General of South Africa.
Kriel confirmed to SMF News that Stellenbosch Municipality “has committed to fully co-operate with the matter and has requested the provincial minister to assess all relevant information, as it seeks clarity regarding the veracity of the allegations”.