Jacques Smalle MP
DA Limpopo Provincial Leader
The DA has requested the Public Protector to investigate the Housing Development Agency (HDA) for possible overrating the valuation prices when they purchased portion 5 and 6 of Mooiplaas 434LT farm on behalf of Greater Letaba Municipality.
The HDA is a government entity for the department of Co-Operative Governance, Human Settlements and Traditional Affairs (Coghsta) who acquire land on the behalf of the department. The farm Mooiplaas is adjacent to Ga-Kgapane and now forms part of the town planning scheme o which 300 erven has been subdivided for town planning and a possible 1432 erven. The portions are estimated to worth R12 million by the local municipality’s evaluator and appears on the valuation role as such. Subsequently , the HDA’s service providers made their own evaluations worth between R72 to 82 Million and the previous owner was paid R14 Million during 2012. The agency has already allocated R52 Million excluding vat to purchase the farm for human settlement development in this new financial year.
Since the exchange of hands between the seller and government ,no improvement were made on the farm. 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 agency/government to overpay for land of more than R40 Million.
The DA is of the view that sections of MFMA has been violated by the agency and further scrutiny by the Public Protector is urgently needed. The DA has also approached the MEC for (Coghsta), Mr Clifford Motsepe this morning to intervene.