The City of Ekurhuleni has no record of its Land and Property Assets
by Cllr. Tebogo Masenya, DA Spokesperson for Real Estate, and Cllr. Sihle Molebatsi, DA Member of Real Estate Oversight Committee.
Date: 24 August 2023
Release: Immediate
Type: Press Statement
In the 27 July 2023, Ordinary Council Meeting, Democratic Alliance (DA) member of Real Estate Oversight Committee, Cllr. Sihle Molebatsi posed a written question to the EFF Member of Mayoral Committee (MMC) for Real Estate, Cllr. Kgopelo Hollo, on the most recently updated municipal-owned land parcels. This question was posed in Council after the exact number of land parcels in the Municipality’s asset register could not be established in the Real Estate Oversight Committee.
The questions posed included a request for a list of all municipal-owned land parcels, a list of the land parcels earmarked/ due for release or disposal in the financial year, as well as a list of land parcels earmarked/ due for release in the current political term which spans from November 2021 — November 2025.
DA Spokesperson for Real Estate, Cllr. Tebogo Masenya, was horrified to find that the department could not respond adequately to the above requests per the Municipality’s asset register list. The department instead responded with a list of municipal-owned properties, which consisted mostly of fire stations per customer care area. Despite not being requested, the list did not provide a comprehensive account of the properties under the ownership/ management of the City. The land/ property audit conducted by the City Planning Department in 2012 allegedly confirmed over 46 000 municipal-owned buildings. The department could also not provide a most recently updated list of land parcels to be released/ disposed of for the financial year, nor a list providing an indication of land to be disposed of/ released for the 2021- 2023 political term.
This has confirmed both Councillor Masenya and Molebatsi’s suspicions, that, the municipality does not have an updated asset register list indicating the land parcels under its ownership. Moreover, the City is not aware of the number of municipal properties that it owns.
When the MMC was questioned about the reason why the municipal land and property asset register has not been updated, a lack of cash flow/ budget and capacity was cited as the main reasons. It is concerning that the municipality does not know how many land and property assets it has under its ownership and management, especially when it must budget annually for its maintenance and upkeep. It is a requirement per the Municipal Finance Management Act (MFMA) that the assets of the municipality are safeguarded, maintained, and valued in accordance with the standards of generally recognised accounting practice and that a system of internal control is maintained to ensure accountability and prevent fraud.
It is therefore not surprising when we see the rapidly deteriorating state of our town halls, municipal buildings and sports stadia which are in desperate need of maintenance and repair.
The DA stands vehemently against acts of corruption and the negligent management of municipal assets and administration and supports the more rigorous application of measures in the MFMA to ensure clean and effective governance and government that can improve the lives of our residents. We will continue to hold the MMC accountable and will apply pressure until all municipal assets are accounted for and equally so, maintained.
Media Enquiries
Cllr. Tebogo Masenya
DA Spokesperson for Real Estate
083 986 4286
Cllr. Sihle Molebatsi
DA Member of Real Estate Oversight Committee
073 430 4989
