Ruined by city council

Phindi and Tshepo Kgaudi are on the verge of losing their home in a 'mess' the blame for which Public Protector Thuli Madonsela puts squarely on the shoulders of the City of Johannesburg.

The couple's 'perilous' journey started in 2008 when they bought two buildings in Jeppestown in which to establish a shoe factory.

But they were unable to take occupation because the buildings had been 'hijacked'.

‘Hijacking of buildings has become a major nightmare for investors,’ Madonsela said. (Image: GCIS)

According to the public protector's report, 'Broken Promises', released yesterday in Pretoria, tenants of the couple's rival bidder for the building are still in occupation.

'Hijacking of buildings has become a major nightmare for investors,' Madonsela said.

The protector said the couple asked the city to cut the electricity supply to the building but this was not done. Instead, they were billed for the power consumed. The bills piled up, but until they were paid the Kgaudis could not sell the buildings.

'[Johannesburg] failed without good reason, over a long period of time, to disconnect electricity services to [the Kgaudis'] illegally occupied property,' Madonsela said.

She said this was in contravention of the municipality's debt control policy and of section 95 of the constitution.

Council failure

Madonsela also found that the council failed to take action against the ANC local councillor for actively encouraging the illegal occupation.

'The Kgaudis were successful business people who owned multiple shoe businesses ... their business started falling apart when the two buildings [they had bought] could not be used,' Madonsela said.

She recommended that Gauteng Premier David Makhura ask the council to buy the buildings as redress for the harm caused, and to investigate the cause of the debacle. Makhura, she said, must also 'apologise to the Kgaudis for the gross maladministration and consequent trauma'.

Lee Cahill, founding member of the Joburg Advocacy Group, said the protector's findings brought the billing crisis of the city back into the spotlight.

'It certainly should set a precedent that owners cannot be liable if there are illegal occupants on a property and the city fails to terminate services,' she said.

Cahill wants Madonsela to investigate the billing crisis throughout the city and not just one hijacking case.

Phindile Chauke, spokesperson for the mayor, said the council welcomed the report and would study its findings and recommendations.

Source: The Times, via I-Net Bridge