DA calls for Tshwane Deputy Mayor Modise to explain R12. 5 million unpaid rent
City of Tshwane Deputy Mayor Eugene Modise is facing criticism over allegations that his company owes the North West Housing Corporation R12.5 million in unpaid rent for the Morula Sun property.
Image: Supplied/ City of Tshwane
The DA in the North West wants City of Tshwane Deputy Mayor Eugene Modise to appear before a provincial legislature portfolio committee to explain a lease agreement linked to his alleged R12.5 million debt in unpaid rent for the Morula Sun property, managed by the North West Housing Corporation (NWHC).
The party has asked the portfolio committee on Cooperative Governance, Human Settlements and Traditional Affairs to summon both Modise and the NWHC 'to come and account for this convenient arrangement between an ANC politician and a failing provincial entity, currently governed by a board staffed by a cohort of ANC politicians'.
Modise, who is also the ANC chairperson in the Tshwane region, has reportedly denied owing NWHC, saying he won't let political gimmicks damage the relationship between his party and NWHC.
He claimed his administration has transformed the entity, curbed criminal activities, and put a stop to vandalism.
He highlighted that since the lease agreement his company has expensive crucial renovations and makeovers of the property.
He said his company entered into the agreement before he became a councillor and deputy mayor.
He declined to disclose further details, citing that the matter is being handled by the board of lawyers, saying it would be "disingenuous and inconsiderate" to comment further.
CJ Steyl, DA MPL in the North West Provincial Legislature and spokesperson on Cooperative Governance, Human Settlements and Traditional Affairs, revealed that the outstanding debt owed by Modise to NWHC was exposed through a parliamentary written question posed by DA MPL Johni Steenkamp.
The response to Steenkamp's question revealed that Modise's company, Mzanzi Resorts, owes the financially strained NWHC over R12.5 million in rental fees for the Morula Sun property.
It was revealed that Modise entered into a lease agreement with NWHC in December 2019 for the Morula Sun property, with a monthly rental fee of R150,000.
The contract was for three years but was extended to April 2026, despite millions owed in arrears.
According to Steyl, the last payments were received in September 2024.
'It is notable that Tshwane Deputy Mayor Modise indicated on the addendum for the extension of the contract, dismissed the arrears amounts in lieu of repairs he brought, despite the contract stating in the lessee's obligations that Mzanzi resorts would be responsible for the maintenance,' he said.
The DA has also referred the matter to Jacqui Uys, the party's Tshwane spokesperson on Finance, to initiate an investigation into Modise within the Metro council.
'The DA will not rest until every cent owed by Tshwane Deputy Mayor Modise is paid in full and that the NWHC accounts for the actions that led to this agreement between the compromised entity and an ANC politician,' Steyl said.
rapula.moatshe@inl.co.za
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