Soweto businesses and the residents have taken the City of Joburg, Joburg Property Company (JPC), and a white-owned company to court.
They are locked in a dispute over the sale of a piece of land in Power Park, Soweto.
The city sold the land which measures 8 955 square metres to Imcapath, a company owned by Louis Barnard. The land was allegedly sold under dubious circumstances for a mere R109 000 pittance.
Initially, the understanding was that the land was earmarked for low-cost housing for Soweto residents. However, the applicants stated in court papers this was not the case, saying the plot was sold for “commercial gain and profit”.
It also emerged the sale of the land was riddled with corruption and that prior to the sale of the land to Barnard, he was conflicted as it turned out he was an agent of the city and had allegedly set up his own purchase price.
The letter dated September 8, 2020, bearing Barnard’s signature, stated that he was authorised by his other company, LAB Investment Holdings, to be the city’s agent with special power of attorney to sell the piece of land to Imcapath.
The plot, which previously had nine different ERF numbers, was later changed to ERF number 415, where deeds of transfer were handed to
Barnard’s Imcapath.
Business owners and Power Park Residents Association who have student accommodations in the area to service the University of Johannesburg Soweto campus, questioned the legality of the sale to Barnard for such a small amount, and instituted litigation against the city, JPC, Imcapath and LAB.
Before Barnard bought the land, the city had entered into an agreement with Katavi Properties in October 2003. The agreement was that the piece of land, previously known as Baralink Precinct 4, would be developed to build houses for low-income earners in Soweto.
However, it is understood that Katavi failed to raise capital, after which Barnard bought the land.
In the application, filed by Jaylopart NPC and businessman Bakang Khumalo, the applicants said in the founding affidavit that the residents of
Power Park had tried to engage the city on the matter, but were moved from pillar to post for the past 20 years.
“The respondent (Imcapath) has no regard whatsoever for our right to housing, what they seek to develop is not going to alleviate homelessness.”
The applicants also stated that Barnard illegally transferred ownership of the property to his own business, and accused the city and JPC of failing to consult the community.
“Everything which the respondents have done in relation to the property have been done in darkness and secret,”they said.
They also stated there were misleading allegations before the court by the respondents when they said there were public engagements, and that the community supported the development of student accommodation.
“The community of Power Park does not support the development of any student accommodation. They expect the municipality to build RDP houses and low-income earners houses.
“This issue is demonstrated in our correspondence with the respondents. Our right to housing is under attack by the respondents and such right should be protected accordingly,” they said.
They also emphasised that when Imcapath did not stop the ongoing construction, it was clear evidence that Barnard was causing harm to the community’s right to housing.
“The respondents have no right whatsoever to erect any student accommodation since they did not acquire the land in accordance with the law.
“The actions of the respondents are very barbaric and inhuman,” they said.
Responding to Sunday World questions, JPC CEO Helen Botes confirmed the plot was sold to Barnard’s company.
“Yes, indeed LAB Investment is acting as an agent of the City of Joburg in terms of power of attorney dated 8 September. Any price contained in the agreement was determined by a professional valuer,” said Botes.
Botes denied that the land was sold to Imcapath for commercial purpose, but rather for housing development.
Their lawyer, Mpho Magome, declined to comment and said that the matter was sub judice.
Imcapath and its lawyers failed to respond to written questions we sent to them last week.
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