Shareholder of Durban's Audacia Manor, a boutique hotel in a historic double-storey mansion in Morningside, have applied to court to liquidate the company, claiming impatient creditors are knocking on the door, the business is running at a loss, and the owners cannot agree on a way forward.

'The company is devoting all of its time to managing creditors which is materially affecting the proper running of the hotel,' shareholder Dawn Stockdale said in an application which came before acting Durban High Court Judge Guido Penzhorn last week.

Stockdale and her husband, Brian, are trustees of the Stockdale Family Trust which, along with Robert Makinson of the Mak Family Trust and the JKC Investment Trust, became shareholders in Audacia Hotel Pty Ltd in March 2011 after it was bought by Gary Catterick for R13 million.

Stockdale said Catterick required finance to pay the portion not covered by an anticipated mortgage of R8m and it was agreed that her trust and the Mak trust would each receive 25 percent shareholding for R1.25m while the JKC Trust - which Catterick was associated with - would get 50 percent for R2.5m.

She said although the shareholders agreement stated that the managing director would prepare annual budgets and monthly management accounts, this had not been done, accounting records were in disarray and to date there were no audited financial statements.

On top of this, the hotel was faring poorly and was completely dependent on shareholder benevolence and support for survival.

Due to shareholder dissatisfaction, at the end of 2012 Makinson's wife, Glenda, had been tasked with investigating and sorting out the financials. By then there was antagonism between the shareholders, particularly directed at Catterick 'regarding a company he controls apparently using the (hotel's) funds to pay creditors and staff, the abuse by him of the facilities and the manner in which the hotel was run'.

By March last year, she said, it was apparent that the hotel was in severe financial difficulty, exacerbated by it taking transfer and now having to pay R80 000 a month off the bond while previously it had simply left the occupation interest unpaid. The taxman, suppliers and the sellers had not been paid. Even staff were owed R70 000 in 'tips'. From time to time, shareholders put in more money and the most pressing creditors were paid.

This month, at an emergency meeting, shareholders were told the business needed a further injection of R1.2m.

'We are not prepared to put in any more money,' Stockdale said. 'The Protea Hotel Group, which was approached with a prospect of it renting the hotel, is not interested because it has to have occupancy of more than 60 percent to be profitable.'

The shareholders are collectively owed R7.7m, the bank R7.6m and the company has further debts of R2.5m.

'The company is commercially insolvent, it cannot pay its debts and it has limped along with the assistance of shareholders for an extended period,' she said. 'The only real prospect is for the business to be sold as a going concern which is effectively what will be achieved if it is wound up.'

The matter was adjourned until next week when the shareholders are expected to have drafted agreements.

The Mercury

Wealthy Durban power couple S'bu and Shauwn Mpisane appear to have started work to join their two neighbouring La Lucia properties - despite allegedly not yet submitting building plans.

The expansive property in Addison Drive, La Lucia, belonging to the Mpisanes. In the foreground is their newly acquired property, adjoining their home, which shows the construction of retaining walls.

The eThekwini Municipality confirmed yesterday that it had yet to receive the required plans, saying until they are approved, no building work could begin.

The municipality has, however, approved the couple's application to consolidate the two properties, while the public have until the end of business today to lodge any appeal against its decision.

But there has already been much activity on the Mpisanes' recently acquired property, next to their three-storey mansion in Addison Drive, La Lucia.

A prominent architect who lives in the area, who did not want to be named, said the couple had started building a 3-4m high concrete retaining wall on their new property. He explained that no structure could be erected without approved building plans.

'The only time a building plan is not required is for a temporary structure such as a temporary fence,' he said.

Building sand and stones have already been delivered to the property, where security guards stand at each entrance point to the compound.

Walls have been knocked down and underground pipes had been installed, the architect said.

According to the Sunday Tribune, the Mpisanes bought the neighbouring property in Moreland Drive for R2.9 million, apparently to build a security complex for 20 guards.

The municipality said it would send out a building inspector to investigate the architect's allegations and take the necessary action.

However, it would not say when the inspection would take place. 'An inspection or investigation is an internal process' and could not be publicised, said an official.

Tozi Mthethwa, the municipality's communications head, said a legislated appeal period on the decision to allow the joining of the properties was being observed. It expires today.

'In terms of this process, the application was duly advertised for public comments,' said Mthethwa.

The Mpisanes have declined to comment on their new property and their building plans.

Earlier this year, the Durban Regional Court acquitted Shauwn Mpisane and her company, Zikhulise Cleaning and Maintenance and Transport CC, of 119 counts of tax fraud involving R4.7m, after the National Prosecuting Authority's decision to stop the prosecution because of alleged irregularities. Before this, State advocate Wendy O'Brien withdrew 53 charges of fraud, forgery and uttering in the Commercial Crime Court as the State missed a deadline to hand over certain information to the defence.

Daily News

Pretoria is the best city in Gauteng for those looking for a place to enjoy the highest quality of life.

This is in terms of the Gauteng City-Region Observatory survey which measured the quality of life in all municipalities in the province.

The survey saw the capital city emerging tops against its peers such as Ekurhuleni and Joburg.

Premier David Makhura congratulated the City of Tshwane for this achievement in his inaugural state of the province address at Thokoza Auditorium in Ekurhuleni yesterday.

Makhura said Tshwane's achievement was a challenge for other municipalities in the province to copy what was working in the city.

Mayor Kgosientso Ramokgopa told the Pretoria News he was humbled by the accolades from the State of the Province address and the appreciation by Makhura of the work Tshwane was doing.

'We believe the accolades are words of inspiration which should fire us to greater heights to improve efficiencies, better service delivery and continuous engagement and cooperation with our people,' he said.

Ramokgopa said the city's Vision 2055 had mobilised the entire city administration and staff at the coalface of service delivery to excel.

'The increased capital spending, the number of public private partnerships, focus on youth development and economic participation catapulted the City of Tshwane to be the best in Gauteng.

'We look forward to heightened support, co-operation and improved intergovernmental relations with the provincial administration under Makhura's leadership,' the mayor added.

Pretoria News

Time is running out for the Department of Public Works to take responsibility for the military base in Tamboerskloof, following renewed complaints that buildings on the site are derelict, unsafe and a haven for criminals.

Ward councillor Dave Bryant said the buildings 'all pose a significant health and safety risk' and 'cannot continue to be ignored by national government'.

The buildings could be demolished or repaired at cost to national government if the city's notice of intention to have the structures declared 'problem buildings' goes unchallenged.

Richard Bosman, city director of safety and security, said: 'There are seven buildings on the erf as well as various animals. A notice of intention to declare the building a problem building was issued to the Public Works Department on June 23. The department has seven days to respond. If they do not, further steps will be taken as per the Problem Building By-law.'

According to this legislation, the city may asked Public Works to 'clean, repair, renovate, repaint, alter, close, demolish or secure' any or all of these problem buildings.

'The investigation by the problem buildings unit is really a last resort after numerous attempts to try and get action from the national department of Public Works.'

The site has for several years been a source of concern for Tamboerskloof residents, who've complained about the informal dwellers and menagerie of animals living on the land. It belongs to the Department of Defence, and its administered by Public Works. It ceased to be used as a military base in 1991.

In 2013, the CSIR called for proposals from professional architects to provide draft concept drawings for the site, at erf 81.

Proposals mooted included the conversion of the Tamboerskloof Ammunition Magazine into a conference facility and the construction of a state guest house with single rooms and self-catering unit as well as five VIP residences. There were also plans to house military veterans in the city in an old age home.

But a few weeks later, the CSIR terminated the project, at the instruction of the Defence Department. Despite several attempts to get an explanation, the department declined to provide reasons.

Bosman said an inspection revealed that the only person living there was a caretaker, who claimed to have been there for almost 20 years.

This caretaker is artist and farmer André Laubscher, who runs what he termed a 'foster farm' in the heart of upmarket Tamboerskloof for almost two decades.

It is home to various animals and has served as a refuge for abandoned children and adults seeking a place of safety. When the Cape Argus visited the farm a year ago, Laubscher was preparing to host a group of 40 children for the holidays.

Laubscher told the Cape Argus this week that he had not heard anything about the city's 'problem building' notice. However, he said someone had mentioned that a security kiosk would be erected at the entrance. Lights had also been installed. Although he was initially against this, the lights hadn't bothered him much, he said.

Laubscher has faced several threats of eviction over the years, but he declined to comment further on these as there is still a court case pending. In 2011, when he was served with an eviction notice, Laubscher published the following on his Facebook page: 'André's Farm, Erf 81 Tamboerskloof - after about 15 years this unique space in the city is to be no more, this place where people could meet animals, destitute children and others found shelter, where art and performance and craftwork, and indigenous plants and frog breeders met with history buffs, this weekend getaway for ramblers and neighbouring families...'

But others said the farm was a 'den of iniquity' - filthy and covered in animal excrement.

Frederick Johnston, of the Department of Public Works' Cape Town office, did not answer his phone when contacted for comment.

He also did not respond to e-mails asking for clarity on his department's plans for the site.

Cape Argus

It will take another six months for Cape Town's N2 Express MyCiTi service to Mitchells Plain and Khayelitsha to be fully functional because the infrastructure is nowhere near complete.

But the buses will run on time on Saturday, the N2 Express launch date.

The infrastructure was to have been completed by December, but the deadline was shifted to July.

The city now says the infrastructure, such as bus stops, will be in place by the end of the year.

When the Cape Times visited the site of the MyCiti station at the Mitchells Plain Town Centre yesterday, it was littered with rubble.

Despite this, mayoral committee member for transport Brett Herron said the MyCiTi buses would begin running on the route on the launch day scheduled - July 5.

The N2 Express was to be the first phase of the MyCiTi service to reach predominantly coloured and black areas, but was delayed in December for several reasons, among them that buses were not yet ready and negotiations were continuing with taxi organisations and Golden Arrow Bus Services.

Herron said more buses were to arrive later this week.

'The service will start with temporary infrastructure - not unlike the commencement of services in other parts of Phase 1. The construction of the infrastructure will be complete by the end of this year,' Herron told the Cape Times yesterday.

'Construction will continue for the remainder of this year, but this will not prevent the service from operating.

'In Khayelitsha some stops have been earmarked for testing - as agreed between the transport planners and the leadership of Codeta Khayelitsha. This is to test that the planned stops are in the best locations for the commuters.

'They are temporary by design until their location is confirmed as being best suited to commuter needs. Once this is confirmed they will be constructed with permanent infrastructure.'

Asked whether the buses would be ready by Saturday, Herron said: 'The full complement of 40 buses is due to be delivered by the end of the year - before the planned rollout of the second routes from Khayelitsha and Mitchells Plain respectively.

'The delivery schedule for the buses needed for the first roll-out this coming weekend is tight, but the service will roll out and, if necessary, we will make use of spare lowfloor buses from Phase 1.'

The N2 Express service will take buses from Khayelitsha and Mitchells Plain to the city centre using dedicated BMT lanes on the N2.

Herron said the N2 Express was a top-up service in Khayelitsha and Mitchells Plain. It was set to transport 3 000 passengers a day during the peak hours.

'Once the Passenger Rail Agency of South Africa has completed its programme to modernise Metrorail the city will review the N2 Express Service, since BRT should not compete with rail. We will therefore not construct dedicated red lanes for the N2 Express Service, nor is there a need for them.'

Routes from Khayelitsha and Mitchells Plain to areas like Claremont, Durbanville and Century City would, however, have dedicated red lanes.

'By the time we have fully rolled out all four routes at the end of the year, we will have added a few thousand additional passenger trip opportunities to the morning and evening peak hours, plus a reliable and frequent service in the off-peak (period).

'The Lansdowne/Wetton Road corridor is prioritised as the next MyCiTi phase and construction will commence in the 2015/16 financial year.'

ANC leader in the city council Tony Ehrenreich said yesterday: 'There is a greater consideration for rich areas. There are no dedicated lanes for the new service.

'Only when you get to the N2, the buses will link to a dedicated lane.

'The Milnerton service is nowhere close to the Mitchells Plain and Khayelitsha one.'

Cape Times

Refusal and failure by motorists to settle their e-toll bills has prompted premier David Makhura to call for a review of the controversial system.

Makhura said the South African National Roads Agency Limited (Sanral) also indicated that people were not paying their e-toll accounts. 'We had to take urgent measures to ensure the financial position of the country was not jeopardised,' Makhura said after delivering his first State of the Province address in Thokoza Auditorium, Ekurhuleni, yesterday.

Makhura said a panel to review the impact of e-tolls and invite new proposals on how to find a lasting solution to the matter would be set up.

He said this would be done in consultation with national government, municipalities and all sectors of the society.

Opponents of the controversial e-toll system, the Opposition to Urban Tolling Alliance (Outa) and Justice Project South Africa (JPSA), have cautiously welcomed the announcement by the Gauteng government that it would review the system.

Outa said it was important that the panel didn't become another cooption tactic that degenerated into a meaningless talk shop.

Spokesman John Clarke said the process had to be an honest and frank engagement by the authorities to unpack the real issues on the matter. 'We have seen this before with the steering committee in 2011 and the inter-ministerial committee in 2012 at which we clearly determined there was no meaningful desire to seriously seek more efficient alternatives...,' he said.

Outa chairman Wayne Duvenage urged citizens to continue to keep up the pressure to scrap e-tolls.

Makhura said: 'While we shall not promise easy solutions and claim easy victories, we must make it clear we cannot close our eyes to the cries of the sectors of our population affected by the cost of travelling across the province. We must all (work) from the premise that we need good roads in our province to support the economy. How we finance such infrastructure must be deliberated upon and agreed.'

Howard Dembovsky, of the JPSA, said the last time there was a panel review, not a blind bit of notice was taken of any inputs civil society tried to make. He said any review panel established this time around had to be representative of civil society, not just a bunch of politicians, bureaucrats and companies whose financial future was dependent on e-tolling continuing.

Makhura's move indicated that the government had doubts about the system, Cosatu said yesterday. 'I think the premier has a duty to be diplomatic but this has indicated that the government is having second thoughts,' said spokesman Patrick Craven.

He added that Cosatu, which has been largely opposing the system, would be glad to be part of the review panel. 'We will be happy to participate provided that it's genuine, unlike the panel held by Sanral which was just a sham,' he said.

He said the tolls were an 'inefficient way to raise money and the system was doomed to failure'. The federation would still encourage motorists not to buy e-tags, he said.

E-tolling was implemented in Gauteng in December despite several court challenges to halt the project.

Makhura urged motorists to continue paying until a lasting solution was found. 'The people's voices must be heard on all matters that affect our province,' he added.

Pretoria News

If you are granted a home loan through your pension fund, it is your duty to ensure that the repayments are deducted from your salary.

In a case that recently came before Pension Funds Adjudicator Muvhango Lukhaimane, City of Cape Town employee SN Fortuin claimed it was not his fault that the repayments had not been deducted from his salary, resulting in his loan falling into arrears. He asked for the loan to be written off.

Fortuin said he was granted a home loan of R25 000 in 1999 by the Cape Municipal Pension Fund, which is administered by Alexander Forbes Financial Services.

Between April 2000 and November 2002, his employer stopped deducting the repayments, and interest accrued on the balance.

Fortuin said the fact that the deductions had stopped was not due to any fault on his part. He said that after the deductions were reinstated, his payments increased – from R333 to R800 a month – and that, according to his calculations, by now his loan should have been paid off.

In its response, the fund said Fortuin’s employer, the City of Cape Town, was responsible for deducting home loan repayments from employees’ salaries. After the hiatus in repayments, the fund had sent a letter to Fortuin advising him that his deduction was not sufficient to cover at least the monthly interest accruing on the balance. Consequently, his home loan balance was not decreasing but increasing. He was advised that his repayment would be increased.

In her determination, Lukhaimane says the employer’s failure to deduct amounts from Fortuin’s salary and to pay them over to the fund caused the arrear interest to be added to the capital. But this did not have the effect of altering Fortuin’s obligation in terms of the loan agreement.

She says that, by accepting the loan, Fortuin also accepted that the primary responsibility to repay the loan was his. He should have checked his salary slips to ensure that the amounts were being deducted. The pension fund could not be faulted for the employer’s failure to effect the deductions.

She says the pension fund and the administrator could not be ordered to write off either the arrear interest on the outstanding amount or the loan. They had not committed any act or omission as a result of which Fortuin suffered a loss.

In dismissing the complaint, Lukhaimane says the salary advices that Fortuin received from his employer every month would have reflected whether or not the home loan repayments were being made.

Personal Finance

The death of at least four people following the collapse of the old Orlando power station in Soweto on Wednesday should never have occurred.

Six others were injured, leading to rescue attempts over several days following the collapse.

The site as it looks today.

The power station should by now have been a thriving R1 billion business centre, but instead it's a disastrous, dangerous site scheduled for demolition.

Today, Joburg and provincial authorities were to meet to discuss the building's demolition, while it seems the developers still want to push ahead with their plans for the area.

The power station collapsed last week after ongoing looting of the structural steel by scrap metal scavengers. The site is owned by the City of Joburg.

'The power station is a heritage building, and is protected by the Provincial Heritage Resources Agency (PHRA). Any intended demolition to heritage stock can only be done in consultation with the agency,' Kululwa Muthwa, the chief operating officer of the Joburg Property Company (JPC), explained.

'The remaining structure is at a potential risk of further collapse. However, a structural investigation will be conducted to confirm this.'

Muthwa said a meeting was scheduled for today between the JPC and the agency, the developer and a structural engineer to assess the structural integrity of the remaining structure.

'The developer has secured the site to minimise the risk of illegal entry to the site,' Muthwa said.

'The demolition can only proceed on obtaining permission from PHRA, and will be done immediately thereafter,' he added.

An artist's impression of the proposed development.

The Orlando power station was supposed to have been part of a huge development, supported by the council, but so far it hasn't got going.

The developer is the Soweto Power Station Mall (SPSM), which would not comment.

But yesterday there were hints that the developers still want the project to go ahead.

A source close to the developers said the plans for phase one were with the council for planning approval, and there were 'immediate plans' to build a community centre.

The developers hoped to build 'something special', he said, and hoped to tackle the crucial problem of job creation - in the construction and running of the centre.

The developers reportedly hope to rebuild after last week's tragedy.

Muthwa said the power station was decommissioned in 1998 and that the JPC had been trying for a decade to facilitate its redevelopment as part of a bigger development project.

The Star's archives record the JPC's announcement in March 2005 of the Orlando Ekhaya project, which was supposed to include 'shopping centres, business nodes, conferencing and recreational facilities, entertainment, specialist shops, hotels and waterfront activities'.

It was also supposed to include the power station, the Orlando cooling towers, the Orlando Dam and the Vista conservation area. An estimated investment of about R400 million had been planned.

A year later, the development was estimated at about R1bn.

At the time, it was reported that the power station part would be developed by a consortium.

In February 2006, the then Joburg mayor, Amos Masondo, symbolically turned the first sod in the new development, which was mentioned in his State of the City address a few weeks later and again the following year.

By 2008, there were hints of problems, with the JPC admitting the development was behind schedule because of difficulty getting funding approved.

By 2010, only R322m of the required R1bn had been raised, with the global economic crunch blamed.

Muthwa said that as part of the development plan, the building was handed over to the SPSM in January 2012.

'To stem the rampant theft of the structural steel, the developer has had the site fenced off four times, but the fencing has consistently been stolen, including electrified fencing. The developer has made all reasonable efforts to secure the site.'

Muthwa said about 25 arrests had been made over the years.

The Star

Personal differences underpin a number of the complaints received by City Watch, as in the case of Donne Dunn of 25 Grove Crescent, Parkhill, Durban North, and her neighbour, B&B owner Bradley Potgieter.

According to Dunn, they are at odds over Potgieter's 'appropriation' of a servitude in the cul-de-sac where both live and the fact that Potgieter had created vehicular access to his home in Grove Crescent, while municipal plans showed his point of access as number 700 Chris Hani (formerly North Coast) Road only.

While he did not wish to elaborate in print, Potgieter told City Watch the two parties had not seen eye to eye for a long time.

He feels Dunn is being unreasonable and said he would 'very much like to have peace with her, and find a way forward that suits both of us'.

In her letter of complaint, Dunn said she had made 'numerous' calls to the roads department, requesting assistance.

She said Potgieter, whose back garden abuts her property, had broken down the back wall of his own property to create an entry from the crescent.

'He had to cross a public access lane to do so and incorporated that portion of the lane into his own property.

'He owns the North Lodge, and the traffic from people who use the lodge will have a negative impact on our formerly quiet cul-de-sac.'

When City Watch visited her, Dunn showed us a series of staggered 'steps' Potgieter had made from tyres filled with concrete, to divert the original common access lane to rejoin Grove Crescent, after appropriating a section of the path and converting it into a driveway to provide access to his property.

She said the changes he had made had caused huge problems with stormwater overflowing into properties below Grove Crescent.

Potgieter told City Watch he felt he had made improvements to the common access route. 'It was filthy and overgrown, and council workers were not maintaining it. I have cut back invasive alien trees and keep the undergrowth trimmed, so it is far safer to walk along now than it was before.'

He said he had felt it would take too long to get permission for the changes he had made, 'but if there is a fine payable, I am prepared to pay, because it was very hard to get in and out of my property from busy Chris Hani Road before'.

However, the city takes a dim view of what Potgieter has done without applying for permission to make alterations either to the servitude or the access to his property.

On Wednesday, and as a result of City Watch's intervention, Potgieter was issued with notification that the illegal access point to his home was to be closed off at once.

This has now been done, but Potgieter has submitted a lengthy motivation to the roads department, requesting that the decision be reconsidered.

He admitted to City Watch that he also does not have the official go-ahead to run a B&B on his extensive property.

Viv Attwood
City Watch
Sunday Tribune

While some Cape Town estate agencies are reporting healthy growth in the city's housing market, from lower-end properties to the high-end market, banks have warned that economic weakness may start to push down year-on-year house price growth.

'Activity in the Cape property market is definitely buoyant, and at the best level in five to six years,' said Seeff chairman Samuel Seeff. But it needed to be noted that the bulk of the activity was in the under R2 million price sector, and for luxury housing up to R8m and R10m.

'Above R20m, more properties have sold, but the activity is much the same as it has been. Buyers are very selective,' he said.

Laurie Wener, managing director for Pam Golding Properties in the Cape metropole, said the market was in good shape.

'The signs of recovery which began emerging some two years ago have now become firmly entrenched and the property market in this region has embarked on an upward cycle,' she said.

'This activity was particularly evident in the apartment market on the Atlantic Seaboard and City Bowl, and in the more affordable housing market along the western seaboard,' she added.

Growth was evident in the sales of houses and apartments.

'Residential developments such as Legacy and The Odyssey in Green Point, as well as Belvedere Court in Claremont, sold quickly, demonstrating the demand for modern new apartments,' she said.

Sectional title properties in the southern suburbs were also popular for student accommodation.

'This market spans everything from basic entry-level properties for new-arrival students, to larger properties to be shared by final-year and postgraduate students,' Wener explained.

High- end developments at the V&A Waterfront had also been popular, said Basil Moraitis, the agency's Atlantic Seaboard and City Bowl head.

He said sales figures for last year showed that 69 apartments, valued at R447m, had been sold, more than double the number of units sold in each of the four previous years.

One reason for the rising demand might be the return of mortgage-dependent buyers to the market, said the agency, after a period where buyers had chiefly used cash.

Mike van Alphen, the national manager of Rawson Finance, pointed in a recent statement to some well-performing Cape Town suburbs, including Rondebosch and Brackenfell.

In Rondebsoch, he said, the price of freehold homes had risen every year since 2004, from an average of R1.34m to R2.9m.

In Brackenfell, which Van Alphen said was experiencing 'rapid and ongoing' development, the rise over the same period for freehold homes had been from R322 000 to R1.1m.

According to Paragon Lending Solutions, residential property has in the past few months overtaken commercial property as an investment opportunity.

'Surprisingly, residential property is proving to be a better investment choice than commercial property.

'This is due to the fact that the cost associated with owning residential property is less than commercial property,' said Gary Palmer, the company's chief executive.

But growth in the property market may start to slow.

FNB economist John Loos, while pointing to the 'solid performance' of the housing market nationally in recent times, warned earlier this month that year-on-year house price growth could start to flatten.

According to the latest FNB house price index, the average house price for last month rose to 8.1 percent year-on-year.

This was slightly higher than a revised 7.9 percent for April.

Loos said key economic numbers released last month had pointed to the economy being under pressure this year.

It was possible that the country had fallen into a mild recession.

Based on such economic weakness, said Loos, year-on-year house price growth was expected to slow this year, ending in the 5 percent to 6 percent range.

Weekend Argus (Saturday Edition)

The Public Protector's Office is set to investigate the circumstances around a development planned for the Philippi horticultural area, the subject of a battle with angry locals which has raged for the past seven years amid claims it will seriously damage an aquifer which provides water to local farms.

The consequences, the opponents say, will threaten the the livelihoods of emerging farmers and their workers, as well as local food security.

'The file will this week be dispatched to the Western Cape office for investigation,' the Public Protector's Office told Weekend Argus, adding that it had assessed the issue, accepted jurisdiction, and decided to investigate.

The call for an investigation came from an umbrella body supported by more than 25 organisations which belong to the Philippi horticultural area (PHA) for Food and Farming Campaign. They charged that an urgent investigation was needed into the 'irrational and unconstitutional actions of both the Western Cape MEC Anton Bredell and the mayor of the City of Cape Town Patricia de Lille with regard to the PHA as a critical resource to the people of Cape Town's food security'.

At issue is a plan by Wynberg company Rapicorp 122 to construct a housing development, Oakland City, comprising residential and industrial units.

The site is next door to another 281-ha site, also previously the subject of controversy. Development on that site was first approved by the city last year, then turned down by Bredell at the beginning of this year following a major public outcry.

PHA spokesman Nazeer Sonday said the aquifer, an underground layer of waterbearing rock from which ground water can be extracted, acts as a massive sponge, providing nutritional water for a number of local farmers' crops in and around the Philippi area. It stretches for about 360km².

'Much of the Cape Flats lie on top of this,' he said, adding that if the development went ahead, rainwater which has always filled the aquifer would no longer be able to seep into the ground, depriving the farmers of their supply of water.

'We were horrified,' he said of the planned development. 'It will destroy the whole PHA... The farming will be lost. We are employing around 3 000 workers in this area, including women and youth. People say we can move (the farms), but the problem is that farming can't take place at this level anywhere else... the area is irreplaceable,' said Sonday.

With the aquifer keeping the land viable, and the ideal micro- climate facilitating farming, vegetable crops thrive. About 50 different types, including leeks, cauliflower, cabbage and onions, are farmed there, with almost 70 percent of the produce ending up at established retail stores. Hawkers, spaza shops and small wholesalers also get their produce from these farms.

Sonday said the area produced 1 500 tons of vegetables each year, a significant contribution to food security in the region.

The PHA for Food and Farming campaign, detailing its concerns in its letter to the public protector, called for an investigation into the environmental affairs and development planning MEC's March 2012 decision to 'redraw the urban edge to to exclude the 570ha from the designated horticultural area'.

They also want her to direct De Lille to acknowledge and 'attend to the recommendations of the PHA vision plan, as drawn up by the stakeholders of the PHA'.

It was in October 2008 that Rapicorp 122 first submitted an application to the city council for the amendment of the urban edge to allow a 472ha urban development 'in the south of the designated Philippi horticultural area', the PHA group said.

Asked to comment this week, Johan van der Merwe, the city's mayoral committee member for economic, environmental and spatial planning, said the proposed development was in the early stages of the environmental impact assessment (EIA) regulatory process.

'A draft scoping report was submitted to the Western Cape government and advertised for public comment in March. This will still need to be followed up in due course by a full EIA application. Only once a final option has been determined by the Western Cape government through the EIA process, can a land use application be submitted to the city,' he said.

The impact on the aquifer, food security and jobs were issues that would be considered as part of the EIA process, among others, and input from all interested and affected parties was required, Van der Merwe added.

Local emerging farmer Kiegan Ryklief said that if the aquifer was destroyed, it would be 'near impossible' to transfer water in from other areas.

'I don't know what I'll do. We are emerging farmers trying to make it in the industry. We've made huge sacrifices to get here, and it's such a struggle, I can't even think of moving anywhere else.'

Ryklief said he believed that if vegetables had to be trucked in from elsewhere, prices would shoot up. There would also be a huge impact on jobs. In his case, 27 workers would lose their jobs if his farm failed.

Chamomile farmer Achmat Brinkhuis said: 'We are upset. We're small- scale farmers building our businesses... We have bonds and loans and have committed ourselves to the area.

'I will have to reduce my enterprise and lay off people... What am I going to do with my kids?' he asked, saying his family of six faced an uncertain future.

'I'm just disappointed in the city, because we are legitimate businesses trying to make a living and providing jobs. We are first-generation farmers... it's exciting to live with the land, and it's sustainable. Your living is in your own hands. But we can't make food with this constant insecurity,' Brinkhuis said.

Rudolf van Jaarsveldt, spokesman for MEC Anton Bredell, echoed the city's statement, saying that an application for environmental authorisation for a mixed-use development was undergoing an environmental impact process. He said the applicants claimed their potential development was not located in the PHA proper.

'The proposed site is located within the urban edge in terms of the City of Cape Town's Spatial Development Framework, and the area has been earmarked for urban development in terms of the City of Cape Town Cape Flats District Plan,' he said.

Van Jaarsveldt said Bredell could potentially be the decision-maker on whether or not the proposed development went ahead, so he could not discuss the details nor provide comment at this point for fear of compromising the process.

Attempts by Weekend Argus to track down Rapicorp 122 for comment proved fruitless.

Weekend Argus (Saturday Edition)

The community in Strand is lobbying the city to install CCTV cameras on the beach to curb petty crime.

The body of Stellenbosch professor Louis Heyns was found in a shallow grave on the beach a year ago.

Strand Ratepayers Association secretary Dorette Bassil said she asked for the cameras to curb the ongoing petty theft.

'The city says the area is no longer a hot spot for crime, but I regularly witness tourists getting mugged and pickpockets on the beach. There is a Renta-Cop system in place and there have been other interventions, but crime just keeps on coming back.

'Petty theft is still a major problem. Residents report that drugs are being sold from the public toilets and that there are other crimes going on.'

Bassil said CCTV cameras would act as a deterrent.

'If we install cameras, we would definitely see a reduction in crime. CCTV cameras work wonderfully in curbing crime. It doesn't cost millions and will benefit the community greatly,' she said.

Bassil said crime was down in Somerset West where CCTV cameras had been installed.

'Criminals tend to target the Strand and Stellenbosch because they know the dunes are big and there are no cameras. Other beaches don't have big bushy dunes like we do. People can hide in there and it makes it difficult to police.'

Strand councillor Dave Venter said the dune area was no longer known as a hot spot for anti-social behaviour.

'Funds were provided from the ward allocation for a Renta-Cop, which has helped to significantly reduce illegal and anti-social activities. The ablution facilities are locked at night, and the surrounding bush was cleared so that the area is visible and activities can be monitored.'

Venter said the dune rehabilitation project which was in place would reduce the alien vegetation which shelter to vagrants.

'The Ward 83 committee has started the process to request that CCTV cameras be installed. This will be considered in the new financial year' Venter said.

The city's safety boss, JP Smith, said CCTV cameras were linked to the Traffic Management Centre in Goodwood.

Cape Times

The City of Joburg has invoked a five-year-old power-saving plan to ensure energy conservation amid renewed load shedding rollout by Eskom and to force consumers to go on a power diet.

The revised energy demand side management policy published on the council's website is a statement of intent that outlines the steps that will be followed to reach set goals on energy efficiency and will be followed by the implementation plan.

The proposals include incentives of rates rebates for energy efficient buildings, rising block tariffs, energy efficient building standards and industrial energy audits.

The city said the demand side management measures for domestic households will be applied in a balanced manner across income groups in order to ensure equity.

'However, measures may be phased in such a way as to achieve maximum impact on overall demand for energy by focusing first on the biggest individual consumers of energy,' it said.

The policy advocates for the introduction of standards that will require all new houses built in the city to have solar heaters, the rollout of smart meters with ripple control switches and retrofitting of municipal buildings with energy efficient lights as direct interventions.

In February 2008 after the power crisis hit the country, The Star reported that Joburg planned to:

Tshwane and Cape Town are the building capitals of the country, outstripping Joburg, which is stagnating.

Last year, the value of plans for construction in the private sector submitted to the City of Joburg and the value of completed buildings were less than the total value of those approved in 2012.

Cape Town, Tshwane, Ekurhuleni and eThekwini last year all approved building plans valued at more than Joburg's plans. And Tshwane and Cape Town residents completed buildings of greater total value than Joburg.

While Joburg's numbers went down, the plans for Tshwane, Cape Town and eThekwini went up; Ekurhuleni's completed buildings value went down, but the value of the plans submitted went up.

The City of Joburg has not responded to requests since Friday for an explanation, including queries about whether there were problems

Tgetting plans passed in Joburg or about the size of the planning- approvals backlog. The figures are in Statistics SA's annual report under 'Selected building statistics of the private sector as reported by local government institutions, 2013'.

The report looked at building by the private sector - business, industrial, office and residential - but excluded building by the government.

It also listed the value of building plans passed in 2013 as: Joburg R7bn (R7.72bn in 2012); Tshwane R14.7bn (R11.7bn in 2012); Ekurhuleni R9.6bn (R7.8bn in 2012); Cape Town R13.9bn (R11.9bn in 2012); and eThekwini R9.5bn (R6.8bn in 2012).

Nationally, the total value of building plans in 2013 was R86bn - up by about 17 percent from 2012.

The value of buildings completed in 2013 were: Joburg R7.2bn (R7.6bn in 2012); Tshwane R9.5bn (R7.6bn in 2012); Ekurhuleni R3.5bn (R4.3bn in 2012); Cape Town R13bn (R8.5bn in 2012); and eThekwini R5bn (R4.6bn in 2012).

The data in the report was crucial for Joburg.

'The results of the survey are used to monitor the state of the economy and the formulation of economic policy,' Stats SA said.

Population figures from the 2011 census from Stats SA showed that Joburg was the biggest city in South Africa, with a population of 4.4 million, followed by Cape Town with 3.7m, eThekwini 3.4m, Ekurhuleni 3.1m and Tshwane 2.9m.

Bryan Wallis, the director for practice and education at the South African Institute of Architects, expressed surprise at the figures for Joburg compared to the other metros.

He could not explain it, but noted there had been indications from the institute's membership that the City of Joburg was in the process of introducing measures to improve the effectiveness of its planning-approval processes.

Joburg DA councillor Graham de Kock, who serves on the council committee that oversees the planning department, couldn't understand the figures. 'Joburg is the biggest city in South Africa,' he said. 'This can't be right. It doesn't add up.'

He said that maybe people were undervaluing the plans they submitted, or there were delays in the planning department, possibly because it was understaffed, or possibly people were not filing plans as legally required.

If residents were ignoring the legal requirement to file plans - possibly because of difficulties in getting city officials to process them - it meant that illegal building was on the increase, which was the sort of problem that could lead to urban blight and scare off investors, De Kock pointed out.

'This is the tipping point of whether a city survives or doesn't,' he said.

Two weeks ago, The Star reported that the city's machine for printing copies of building plans had been broken for five months, causing huge backlogs in getting plans approved.

The crisis meant that developers could not get copies of plans for starting renovations or new buildings.

At the time, Joburg metro spokesman Nthatisi Modingoane confirmed the machine had been problematic, but said the city was buying a new one.

The Star

Plans are taking shape for a groundbreaking green neighbourhood development near Zithobeni in the greater Bronkhorstspruit region.

An artist's impression of the residential green neighbourhood development proposed for land near Zithobeni.

The development will be self-sufficient in food production, rainwater harvesting, energy generation and waste treatment and feature conservation, low-carbon buildings and energy efficient lighting.

The project was unveiled by senior Tshwane housing and human settlements official Amolemo Mothoagae during the Sustainability Week event at the CSIR International Convention Centre.

Initially mooted by mayor Kgosientso Ramokgopa in the state of the city address in April, the concept is in line with Tshwane's goal of growth and development being driven by an economy that supports a sustainable city by 2055.

The site identified for the development was a 159.68 hectare portion of the Hondsrivier farm Zithobeni, Mothoagae said.

The proposed concept would exceed Tshwane's green building code in terms of energy and water efficiency, with privileged use of healthy materials that minimised indoor air pollution.

The focus would be on providing medium-density mixed housing models, combining housing types and sizes and income levels and allowing opportunities for homebased enterprises and small retail ventures within residential areas.

The aim was to develop a renewable energy model that used solar energy and other on-site resources, such as biogas from organic waste, to maximise energy generation.

Multimodal transportation would be included, with pedestrian and cycle routes and an internal public transport system.

Rainfall would be managed optimally through direct harvesting, retention ponds and drainage systems that allowed the recharging of groundwater reservoirs.

Ecological wastewater treatment methods would be used to clean up stormwater before it was used in urban agriculture.

An integrated management system would make water available for urban agriculture and high biodiversity green open spaces.

An on-site recycling depot would be linked to a larger recycling programme as well as energy production and agriculture.

A space for selling extra produce and secondary products in the community would allow the generation of income and links to neighbouring areas. Economic growth would be supported to enable informal businesses to expand and create jobs.

Specialists would be appointed and adjacent land portions acquired to expand the concept.

Strategies and partnerships would be developed and funding sourced. This would be followed by the implementation of planning, design and operational phases.

Pretoria News

It is necessary to be completely open and transparent with banks when applying for a bond, says Lynette Ferndale, a conveyancer with Gunstons Attorneys.

She says this is especially the case when applicants have failed to get the full bond amounts for which they applied and make separate deals with sellers to cover the outstanding amounts.

"This is a legitimate procedure, but the second deal might lead to banks reducing the loan amounts or alternatively, in severe cases, cancelling bonds because they now see applicants as over-extending their debt and exceeding their credit limitations," says Ferndale.

"If bond applicants conclude such deals with sellers without informing their banks, this could be regarded as fraud - but many buyers are not aware of this."

This sort of situation, says Ferndale, occurs often at the lower end of the market, where buyers are looking for 100 percent bonds but don't get them. All sorts of "special deals" are done and often buyers are under the mistaken impression that they aren't obliged to disclose these to the banks. Even when such second deals are condoned by banks, she says, they can cause delays.

Ferndale says that although the stipulations of the National Credit Act (NCA) are quite widely understood, many bond applicants don't realise they are obliged to report to the banks any major changes in their financial situations that may occur between applying for bonds and registration.

"The conveyancer's position in these situations can be very difficult because she is quite rightly obliged to reveal to the bank any new facts that could affect applicants' ability to meet their bond commitments."

The NCA requires financial institutions to investigate clients' financial position and ensure they can afford repayments. They are strictly instructed not to allow reckless credit lending.

When it comes to complying with the Financial Intelligence Centre Act, the attorney has to reveal any doubts about the origin or legitimacy of the funds for the purchase.

Saturday Star

The 'formalisation' of property marketing in South Africa's major informal settlements is an on-going process, the impact of which is now being felt across the country.

The good news, says Tony Clarke of the Rawson Property Group, is that this is now also raising prices in these areas at an unprecedented rate and fostering a desire for home ownership among younger people.

In the major Cape Town suburbs of Khayelitsha and Gugulethu, average home prices, says Clarke, have risen very significantly in the last few years.

The following figures, says Clarke, have been taken from reports by the property analysts, Lightstone, who get their figures from the Deeds Office, and they are complemented by some equally interesting data regarding household incomes in the townships.

"In Khayelitsha the rise has been from an average of R36,000 in 2008 to R134,000 this year. In Gugulethu house prices have climbed steadily from an average of R157,000 in 2008 to R492,000 this year.

"In Johannesburg's Soweto we have also seen spectacular price rises, with certain homes selling for up to R2 million, R3 million and even R4 million. The average price here has risen from R181,000 in 2008 to R310,000 this year - which represents a 71,3% increase over six years."

"In Gugulethu the average household income ranges from R9,000 to R15,000," says Clarke. "In Khayelitsha the range is from R1,500 to R3,000 and in Soweto it is from R3,000 to R6,000. However Soweto, it is reported elsewhere, has a few millionaires and in this respect is way ahead of any other South African informal settlement."

What most of these suburbs have in common, says Clarke, is a tendency for homes to remain owned by one owner or one family for a very long time. For example, in Khayelitsha some 75% of the owners have held their property for over 11 years and the figures are much the same in the other major informal settlements, where an average of 80% of homes have been held by the same owner for over 11 years.

"This does indicate that trade in homes is not nearly as brisk and widespread as it is in the middle class suburbs. Here again, however, a big change has taken place. Today about 45% of new buyers are in the 18 to 35 year age group, whereas previously this figure was below 10%. It is worth noticing that the informal settlement figures are actually higher than those in most middle class areas, where some 60% of buyers still tend to be in the 30 to 45 year old group."

Clarke says that he anticipates a complete revolution in attitudes to home ownership among residence here, with more and more potential buyers realizing that a home is a good asset and one to be aimed at, even if it takes some sacrifice.

"We are definitely seeing changes in this direction in the areas that we serve," says Clarke, "especially in areas like Pretoria West, where the homes are largely bought by previously disadvantaged buyers."

Rawson Press Release

It is sometimes said that up to 25% of South Africa's sectional title schemes are inefficiently managed and in many cases the units in these lose value year after year.

This situation, says Tony Clarke, Managing Director of the Rawson Property Group, is in nine cases out of ten due to the sectional title scheme not being managed properly and having trustees who are inexperienced or lazy.

"Even a rudimentary investigation of body corporates will usually show that many of the trustees ought never to have been appointed because little or nothing in their background equips them for their new task."

This, adds Clarke, very often applies to people who in other fields have been highly successful, but whose knowledge of property and property law is totally inadequate for the job at hand.

One improvement he and others would like to see, says Clarke, is a new set of rules applied to the whole question of the remuneration of trustees.

As the Sectional Title PMR 10 (Prescribed Management Rules) Act now stands, owner trustees serving on the body corporate are not paid for their work. However, if such bodies pass a Special Resolution to this effect, they can be paid - and this allows body corporates to source skills from non-owners.

This very good rule, says Clarke, makes it possible for body corporate boards to appoint people with specialist knowledge, e.g. financial, legal, building or security matters, to help them solve problems that they themselves cannot really handle.

"In my view too little use is made of this particular ruling," says Clarke, "if expert, competent people with the appropriate skills are available to join boards they should be appointed as trustees or alternate trustees and should be paid for their work. In many cases such people can and do turn schemes around and make them far more profitable than they have been in the past."

The question will always arise, says Clarke, as to the rates at which such people should be paid, but, he points out, many of them, being professionals, will expect to be paid at professional rates - and this cannot be argued with.

In general, he says, the more serious the sectional title scheme's problems are, the higher the expert's fees are likely to be - but, he adds, clauses in their employment contracts can be inserted to the effect that payment depends on achieving results.

In addition, says Clarke, he would like to see all schemes being allowed to pay all their trustees, not just non-owners.

"At the moment, being a trustee is often a thankless task for which there is absolutely no financial reward. The job is consequently often seen as irksome by those who accept these positions and it is not surprising to find that many of them are not particularly interested. If trustees were paid (at a satisfactory rate) they might well value their jobs, want to keep them and feel incentivized to improve the schemes for which they are responsible. Remuneration packages are therefore long overdue for a change."

Rawson Press Release

In the last 50 years Cape Town has seen a surprisingly large number of church, synagogue and other places of worship being sold and put to use in novel ways - and it is fascinating to speculate what the future of the latest such building to come up for sale might be.

The church building in Lower Main Road Observatory.

On Wednesday 23rd July Rawson Auctions Western Cape will be auctioning a 500 m2 church building cum hall in Lower Main Road, Observatory. This building was formerly rented by the Pentecostal Mission Church.

The building, which is designed in a mock Gothic style with turrets and castellated street facing profiles (almost as if it was built to withstand assault by bowmen and battering rams), can seat 150 to 200 people and has a stage, a vestry, a lobby, an auditorium, a child minding room, a kitchen, toilets and a verandah.

The auction will take place at 222 Main Road, Rondebosch, the Rawson Property Group's head office, at 12 noon on the date mentioned above and will be subject to the usual Rawson Auctions' conditions: a 5% deposit on the sale price as well as a 10% auctioneer's fee must be paid on the fall of the hammer. In addition, all bidders must be able to produce ID documents and proof of residence in South Africa.

Jovanovski said that the building is unlikely to be worth less than R3,5 million and could fetch double that price. She expects bidding to begin at the lower figure.

"It has been recognized that these early and mid-20th Century Cape buildings were erected in the days when artisans did long thorough apprenticeships and produced quality work. This will become very evident to anyone inspecting this building," she said.

"On a site as valuable as this," she said, "there are endless uses to which an enterprising purchaser could resort."

No tenants lease will be in place when the building comes up for auction.

Rawson Auctions Press Release

Joburg's Metrobus is losing almost R20 million a year due to broken-down buses and cash-fare pilferage.

Commuters queue for a Metrobus at Gandhi Square in Joburg.

These figures were released in the entity's quarterly report, from January to March, which show that some 5 000 bus trips were cancelled because of nonoperational buses.

DA spokesman on transport councillor Basil Douglas said he was especially shocked to hear about the pilferage that had been going on within the entity, and slammed Metrobus for not taking strong action against those responsible.

'Some R42 000 a day was lost due to theft. It is outrageous that criminal charges are not laid against those responsible,' he said.

However, Metrobus spokesman Esther Dreyer said a 'blitz' programme had been instituted to increase the visibility of inspectors on buses during peak

Mperiods to ensure cash revenue was protected. This had already resulted in cash revenue rising from R63 000 a day to R105 000. 'We have various other revenue enhancement measures to curb pilferage. In addition, a tender has been awarded to an external inspectorate, which started inspections (yesterday),' she said.

Metrobus had taken disciplinary action against those caught stealing.

'We have pending cases of ticket irregularities and subsequent dismissals, on an ongoing basis,' Dreyer said.

The most common form of theft was drivers asking cash commuters for money and then not issuing receipts, or promising to issue receipts.

Dreyer said it was difficult to give exact figures of how many drivers had been charged, as the numbers varied.

'We have had internal inspectors and staff from all departments in Metrobus doing spot checks every day, but once they are spotted, the drivers communicate with one another and warn them, so it is difficult to catch them.

'But now that an external company has been employed, it will be easier to identify suspects,' she said.

Metrobus has a fleet of 450 buses, of which 391 are in operation and 59 are waiting to be scrapped. To improve operations, a further 23 buses were leased in March.

Metrobus carried out 92 000 trips between January and March this year, carrying 4 million passengers.

The report also states that only nine of Metrobus's key performance indicators out of 25 had been met this past quarter.

The Star