Public Protector must probe Co-Operative Governance, Human Settlements and Traditional Affairs

Jacques Smalle MP DA Limpopo Provincial Leader The DA will approach the Public Protector to investigate the department of Co-Operative Governance, Human Settlements and Traditional Affairs (Coghsta) for overrating their prices when they purchased Mooiplaas 434LT farm from Greater Letaba Municipality. The farm is adjacent to Ga-Kgapane where the local municipality wanted to sell 300 erven. The farm is estimated to worth only R9 million as per the evaluations made on the farm by the municipality. The letter in our possession indicates that the department has already allocated R52 Million excluding vat to purchase the farm for human settlement development in this new financial year. Furthermore, the department appointed two private service providers to evaluate the property and they were paid R60 Million and the owner was paid R14,5 million. According to the Municipal Finance Management Act (MFMA), section 112 (2) indicates that the regulatory framework for Municipal supply must be fair, equitable competitive and cost effective but in this case that did not happened. It is unacceptable for the department to pay extra R43 Million for a land that is worth only R9 Million. The DA is of the view that MFMA section been violated by the municipality and the department when the decision to purchase the farm at such an overrated price was made. The DA will approach the Public Protector to investigate both the department and the municipality for the overpricing on the farm and establish whether the correct procedures were followed.

Leave a Reply

Your email address will not be published. Required fields are marked *