The lack of public participation in matters as important as the mishandling of the Wavelength’s land deal, which affects all in Bitou, has always being dismaying. Consequently, we were very pleased when an extensive comment was posted by a member of the public at our blog called The League of Evil Politicians. It was so informative that we requested permission for it to be posted as it’s own article here. This is an important read…so READ IT!
Let me add my reaction to the debate regarding the Plettenberg Bay/Wavelengths debacle. As a fellow South African and investor, I am too like many others concerned about the political dispensation and how those in power disregard the rule of law and act with impunity. We need to know where we heading and how to plan our future. This to me was a great opportunity to use as bench mark for my own understanding and planning.
As a retired 14 year veteran involved with the inner workings of governmental processes and accounts I fail to understand how, with all the controls, procedures, auditors, internal and external, the minister could allow a contract to be signed, R 29 million in funds procured and paid over to the powers that be for a property worth R2.1 million. This is a no brainer.
The media reaction and subsequent handling of the situation was to me suspicious and obviously questionable. I decided to do a little research and used information readily available to all, inclusive the provincial government and the minister.
How can a municipality or individuals who are not in control of the checks and balances of a provincial government convince government to make such an error?
It is not as if one can walk into an office in Cape Town, open a safe and remove the funds for such a venture. Valuations are notoriously subjective but what we know was that the 3 parties concerned were in agreement when it came to the price to be paid, for the property. The process was finalized up and until the funds, now short, had to be paid over to the seller.
If this was a war and the minister were the general in charge we the public would certainly have perished as a result, in scale and size, of the errors made.
WAVELENGTHS:
In asking around I found the shareholders of Wavelengths to be a local family who predominantly acquire properties, add value through development and mainly keep such as long term investments from which they derive rental income.
I checked the deeds office to determine the acquisition price and were surprised to find that inclusive of holding cost, the value in cost to Wavelengths over the 5 year period they owned the larger part of the property, were approximately R14 million. This placed a big question mark over the R2.1 million reported in the media. I also learned that they started a process of re-zoning with the intention to develop the 37 Hectare property.
In property circles I found a general feeling on the developed value of the property to be , taking into account that we are talking about Plettenberg Bay and not Sannieshof, 3 times the R29 million in any one of the residential, commercial or industrial market. A value the minister at first accepted. It stands to reason that 37 hectare will be more sought after in Cape Town center for example than Koekenaap and therefore a difference in value.
Why then were they happy to sell?
It was suggested that, when powers that be at the time, learned of the potential development the expropriation threat were mentioned. The property was needed for low cost housing and that support for another type of development would not be supported.
Is the property that good I wondered and made the effort to visit it? I found to my astonishment that the minister, the municipality as too the seller were justified in their understanding of its value. The 2.1 million valuation that later became the contentious issue obviously referred to a valuation for agricultural land, but both the minister and municipality new that they are the only powers in control and authority for the re-zoning of the property. Something they obviously new they were going to do. Once done, mere mortals would not have had the funding for its acquisition.
THE PROPERTY:
37 Hectares, on the main road, within the urban edge, located between the residential areas of New Horizons and Kwanokutula, next to a school and close to others, infrastructure for municipal services in close proximity, commercial infrastructure of shops and transport within a stones through. Even governmental infrastructure like The Department of Home Affairs is located within a 5 minute walk.
Considering the Guide Plan for a minimum of 25 units per hectare and one can imagine how many units could have been built on the 37 hectares and how many of those destitute be accommodated.
Why then did it become a hot potato?
Election time:
Political rivalry. An ANC held municipality and a DA held province were one of my immediate thoughts.
It was a closely held ANC constituency and a very plausible potential DA takeover. Both needed the land for the underprivileged vote. Neither was going to allow the other to take advantage of such a situation. It also became common knowledge that the land will be acquired. The Minister visited the property and even advocated for it in the Bitou Council Chambers. The transaction was also advertised in the Government Gazette. The purpose and result of which confirms and validates the full and final acceptance and merit for the transaction. Both parties new its value and its political importance and for the minister to later claim misconduct by others place a question as to the integrity of his Office. The Office of The President is not about an individual but the institution of President.
The ANC controlled the municipality, the town and current electorate and the DA controlled the money for the project. The voters believed their respective candidates that they will be the benefactors after the election of a new housing project. The political control still undetermined but as both advocated for the project they had every reason to believe in its future.
I think the Minister thought he had a fail proof strategy.
Behind in the election race, denying the funding, would be disastrous for the DA. Approving the funding could benefit them tremendously. If they lost, they could claim misconduct on the part of the ANC especially with the past record of the ANC in general. If they win however they would not only control the Bitou municipal area but also the money appropriated for this purpose but to be used at hearts content. They could still claim misconduct and arrange for the necessary measures as so called proof. The media for one is always willing with the hangman’s noose in such cases.
My second thought:
All this happened close to the end of March, the end of the fiscal year. It is required by National Government that all unused funds be returned to Treasury at the end of the fiscal year. Most governmental departments are always in need of more funds than what were approved in budget and if some can be diverted to the next fiscal year from the previous year, shortfalls can be provided for. Dumping funds in unfinished projects is an old strategy used for circumventing such a situation.
Was this the case? It certainly looks as if it could have been.
The unforeseen problem seems to be that after the election and by the time that the DA took over from the ANC a substantial amount of the funds was utilized for other purposes. Add to that the recessionary situation, the fact that the building industry was in tatters, a necessary source of income for developing infrastructure for low cost housing and one can understand that they were now faced with an unenviable difficult situation.
No longer will they be able to pay for the land bought but also will they not be able to develop the land into much needed housing for those who needed it and voted for them.
Mudslinging, unsubstantiated criminal charges and court cases followed. Cost of litigation after all is much cheaper than following through with the project. As the party in power they will be able to buy time for solving the problem with the electorate at a later and more convenient stage. The ANC is after all to be blamed would be the appropriate argument.
This should have been a win win situation for all considered. I for one believes and I also know of well known developers and business people who agree that it was an ideal transaction for all considered.
There are single residential properties in Plettenberg Bay for similar amounts, business people paid that for one buffalo, a 37 hectare wine farm will cost more and let me remind those in doubt of the R100’s of millions paid for a similar piece of land in Knysna a few years ago. Those who buy these properties in the private sector understand their value and how to turn a profit from them.
Political parties however should not take advantage of such opportunities and that to the detriment of the people they profess to serve.
The difference being that thousands of people, men women and children would have benefited had the political brains trust found an amicable solution to the problem. The politicians are after all claiming to be the experts and profess to be qualified to make decisions on our behalf and work for the benefit of us all.
This might still come to haunt them, maybe not those who were involved, but certainly the political institutions as the human memory is long and unforgiving, especially when it comes to the well being of the children.
This is one the DA allowed to slip and I believe they should remedy and salvage.
Past and present ruling parties has used the infrastructure of the state to their benefit and as a DA supporter I urge those in charge not to stoop to these tactics and methods as it will be disastrous and counter productive. I for one support the DA as I believe in the integrity by which they govern and conduct themselves in general. I am however willing to speak out if I believe a wrong was done irrespective by whom.
Formosa
Superb read! Very informative! May i repost at http://www.KnysnaKeep.org? It provides much insight into my repeated belief that there’s politics for politicians instead of for the people they are suppose to serve.
Wish more members of the public would share rather than pretend bad things will have no power if you hide.
Only a politician is able to f-up a perfectly good commercial transaction like this.
It is obviously for me a very sad state of affairs on this land issue especially when it affects the people of New Horizon, so tragic as you still find alot of backdoor-dwellers in this part of Plettenberg Bay. I personally took the initiative at a public meeting when the DA councillor in the presence of the ANC councillor wanted to disseminate lies on what really happened in this matter.
People of this ward was shocked and appalled walked out of the meeting and I have been trying to get a info session going on this matter for months, but as it be or maybe I was met with heavy resistance from both sides. I feel that the people of New Horizon should know the truth so that they themselves can deal with the evil politicians in our community. I call on Hardy Mills to avail himself as he already have so that we can have a decent public meeting on this matter. If at all possible we should actually have this meeting before year end so that people go into the Festive Season with the knowledge on who screwed them.
Disgusting
What I also personally felt and did not add earlier is that I believe that farm is part of an attempt to form a conservancy. So once again forget the people and consider the animals first. It is so interesting that alot of “whites” will pay millions for the wellness programmes of animals and yet would not give one cent towards the upliftment of HDI”s
It is up to the people of newhorizon to stand up for their rights if it was kwanokuthula or bossiesgif there would already be chaos.where is adam and his pastors from newhorizon that use to support him and his marches to the municipality and they use to lie to the people that they are fighting for houses now adam is in charge where are his pastors and cope supporters.hulle het die mense lekker belieg
We don’t need to burn down New Horizon in my opinion we just need to keep our councillor accountable and make sure that he reports on a regular basis on issues that is victimizing our community.
When last did we have our quarterly community meetings.
By the way Adam’s words to myself and Mike Scholtz was that he was concerned about what was happening in terms of housing in New Horizon, but still has not done anything. In fact I think he just negotiated a deal for himself.
Very good and well researched article,I hope sanity will prevail in the powers that be and they will reconsider their decision on this matter.
I cant help but agree with most of the above, but would like to add: I sympathize with the POOR PEOPLE in the effected area where in the future much needed housing could have been established adjoining the existing community. I sympathize with the business people and work force alike in the immediate area, think of the work and job creation such a development could have created. but also very important, what about the directly effected parties in a very normal and straight forward business transaction??? the poor seller in this case is shoved out in the cold with major expenses and losses and is defamed over and over in regard this transaction, when all he did was try and accommodate a desperate buyer who convinced him in more ways than one that they needed the land for the community, whilst he was planning a light industrial area with emphasis to make it a place with affordable rents so that local people could afford to open up small businesses, thus assisting the economy and creating jobs. As of this moment my information has it, that both the duly authorized representatives of the buyers and the sellers are still in total agreance with the contract, and the buyers authorized representative still confirms that the special conditions regarding the funding have been met and that the terms of the contract have been for filled. Politicians get involved, and suddenly all kinds of stories are fabricated ( none of which make sense in the law of ” a willing buyer , willing seller”) and totally screw up a very normal commercial transaction to the detriment to virtually the whole of the Bitou community if you understand the underlying ramifications which I will deal with later. THE BIG CONCERN IS, WHAT HAS HAPPENED TO OUR LAW, WHY IS IT THAT WE FEEL THE COURTS ARE BEING INFLUENCED BY POLITICS, AND THUS THE PERPETRATORS ARE GOING UNTOUCHED AND INNOCENT PEOPLE ARE BEING STUNG IN THE PROCESS. THE WAVELENGTHS DEAL “AS REFERRED TO” WAS A PERFECTLY NORMAL COMMERCIAL TRANSACTION WHICH CORRUPT OFFICIALS, POLITICIANS AND MINISTERS TOTALLY MESSED UP AND LETS NOT LEAVE THE JUSTICE DEPARTMENT OUT OF THIS, AS THEY SCREWED UP AS WELL.
Will there ever again be a business person willing to take the risk of doing business with any state or semi state department, for fear of being screwed over and then having no certainty of the justice department functioning in a correct manner A LOSE LOSE LOSE SITUATION. IS THIS WHAT WE WANT OUR COUNTRY TO BE???????????
The Law, sadly, tragically and maddeningly, has been sold.
Very interesting, watch this space because I surely have a lot to say and can fill you all in with a lot of facts. most of all the above comments are pretty much on track, unfortunately I don’t have the time to reply in detail now, but the way the Wave lengths, a very normal transaction was handled after the very incompetent dishonest people got hold of it, is nothing but disgusting, speak soon
We are waiting Mike?
We are waiting Mike!
Where are you Mike?
The saga continues…explosively…www.justiceandequality.co.za/lonwabo-innocent-judge-biased-plett-taxpayer-screwed-again.
But who is the Master mind?
It appears to be party politics so i tend to lay blame at the feet of their leaders…in this case, Helen Zille. This, of course, is personal opinion.
Although I am not supporting any political party, I do follow the “goings on” for the sake of amusement.
In Paarl as I understand, the successful “Cultivaria” festival was well supported by the previous ANC council in Paarl, resulting in 13 million Rand being spent, by visitors, in Paarl in a period of 3 days and 20 million Rands worth of media exposure per year for the town. However, now with Helen Zille`s DA council in power in Paarl the organiser of the festival did not even get his letters answered regarding basic traffic requirements for this year let alone any other support.
As other towns such as Stellenbosch and Franschoek saw the benefits of hosting such an event in their towns, Stellenbosch immediately stepped in and the popular “Long Table Event” will now be hosted in Stellenbosch.
Paarl is loosing out to the tune of millions of Rands of exposure, thanks to the DA.
Therefore when I read your article about the Plettenberg Bay/ Wavelenths debacle it did not surprise me. Maybe the ANC is doing politics while the DA is playing politics !
It seems that they take turns being the bad guy and pretending to be the good guy. It all, at some stage, when the music stops, results in the politicians taking the chairs and the public left standing in the cold. Politics is a child’s game for adults.
Maybe the final comment on the Wavelength Debacle in Bitou.
1. The hard and difficult process for the approval of funds for the acquisition of land for the less privileged “coloured” community. DONE
2. Newly elected DA of Helen Zille throw “spanner in the works” and acquisition of the only suitable land STOPS !
3. Money earmarked and granted by government for the project will now have to be returned to the state. DONE !
4. Coloured community once more draw the short end of the stick ! DONE !
5. New process for acquisition of the land will have to be started.
6. The land that was valued and the value agreed upon by normal market forces, will have to be revalued. (outcome probably the same)
7. The laughable “new value” of Rand 2.1 million suggested by the Zille council for a property which costs the seller +/- R14 million with holding cost over 5 years is nothing short of a Julius Malema policy.
8. Unless the DA and Helen Zille approve this Malema type policy, the land will once again be valued at a sensible market value and the acquisition process restarted.
9. Years will be lost for the “coloured” community who, as I understand, form the backbone of the DA electorate.
10. The possibility exists that government may never in future approve a similar project, world finance is heading for the “middle ages”.
What Helen Zille did yesterday at Nkandla was brave and correct. How come her DA council “rides rough shot” with the lives of the poor “coloureds” who have given so much in the building of the greater Plettenberg Bay.
Will they realise who is responsible for their predicament and will they vote DA in future !?
All I can say is Ms Zille “tear down this wall” !
As I understand the Wavelength Debacle in Bitou is going to the Court of Appeal in Bloemfontein. Justice will be done, but will it be to late?
Confucius, you are so right. Mrs Zille did the right thing yesterday in highlighting corruption at national level. Why can’t, or won’t she tackle corruption in her own back-yard. Oudtshoorn (yes we know it is ANC), but the current issues in Bitou where the DA is in control? Legal bills mounting by the day, rates rocketing “UP”, the current MM (‘s) issue, Clairison’s and the Proud Heritage “Tsokwane Retirement Villages issue’s, Johan Brummer’s statement about corruption during the latest AGM etc etc. When is someone in the DA taking control? Mrs Zille, are you there???????????????????????????????????
Confucius, so you are propogating this old fashioned separate development policy of the Nats, coloured areas for the coloured and townships for the blacks? Whats going on with you? Zille was right to raise the issue of Nkandla with appropriate authorities which include the Public Protector, but to go there and provoke people was just a publicity stunt and nothing else. I hold no brief for Zuma and I am actually disgusted by this whole Nkandla saga, but if if all the black people (coloureds and africans) begin to take white farms like what happened in Zimbabwe, there will be chaos, but Zille can do as she likes.
Terence. I don’t think that the “Comming together project” was for the Coloureds of our society.
As I understand it was for the Bitou Middle class and, as the name clearly states, “Comming together of the rainbow people”. But, I could be wrong.
JUSTICE DELAYED IS JUSTICE DENIED.The people of New Horizon’s justice was delayed and denied.They had become serious victims of party political games.It is really up to them to stand up for their rights to houses.The ball is in their court as well.
What really annoys me about the whole situation is the fact that Elaine Paulse has the audacity to come to Public Meetings and start evagelising successes which was achieved with the time of the ANC e.g. the modern library in New Horizon she is now even claiming victory for this all by herself. What she is failing to tell the people of New Horizon is the fact that the DA is costing them to be “backyard dwellers” once again. It seems like none of the local DA councillors has ever been involved in market-place transactions that is why they can trample all over the CODESA process that talks about the three things, one being the principle of willing buyer, willing seller. That includes Johann Brummer.
So coloureds are once again not better of because of DA politics but even worse off then under a ANC Council. What a bunch of idiots.