Corporate & Commercial Law News South Africa

Thuli starts Pilgrim's probe

Described as a "sham" by Pretoria High Court Judge Stanley Makgoba last month, the contentious awarding of leases in the historic mining town of Pilgrim's Rest, in Mpumalanga, is now the subject of an investigation by the public protector.

Judge Makgoba interdicted the Mpumalanga public works department from evicting business owners.

In June, the department issued eviction notices to 17 business owners to make way for new tenants after a tendering process that was described in court as flawed, corrupt and racially motivated.

Public Protector Thuli Madonsela's spokesman, Oupa Segalwe, said the protector was investigating the tenders after a request by Freedom Front Plus.

The Times reported that multiple leases were awarded to each of five bidders, with Matletle Construction and Projects receiving five leases.

The Times has since learned that the tenancy of the Pilgrim's Rest caravan park has been awarded to a company that will pay R36 rent a month. The previous tenant, who had run the caravan park for five years, paid R19 000 a month.

Mpumalanga's public works department could not be reached for comment.

Source: The Times via I-Net Bridge

Source: I-Net Bridge

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