STATEMENT BY THE CITY’S EXECUTIVE MAYOR PATRICIA DE LILLE
Following a barrage of media reports related to the auctioning of Erf 165639 in September 2016, I discussed the matter with the City Manager, LungeloMbandazayo, and this week wrote to him to request that he initiates a forensic investigation into what exactly transpired throughout this sale process.
The erf, also known as Site B on the Foreshore, was sold to Growthpoint Properties through an auction for an amount of R86,5 million. There are allegations that the land was severely undervalued and that this resulted in a loss of R58 million.
I wrote to the City Manager to express my concern at this alleged loss of public funds and also stated that the City could also run the risk of an audit query from the Auditor General or as a result of a member of the public reporting the matter to the Public Protector.
In light of these concerns and allegations, and in the spirit of transparency and responsiveness, I have requested that the City Manager initiates a forensic investigation into what exactly transpired in this sale process.
Source: City of Cape Town
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