Tshwane Deputy Mayor accused of owing R12.5m in rental arrears

The Citizen

11 hours ago

The DA further alleges that Modise dismissed the arrears in an addendum to the lease, citing repairs done to the property.
The Democratic Alliance (DA) in the North West has accused Tshwane Deputy Mayor and MMC for Finance, Eugene Modise, of owing more than R12.5 million in unpaid rent to the North West Housing Corporation (NWHC) for the lease of the Morula Sun property through his company, Mzanzi Resorts.
According to DA CJ Steyl, the debt stems from a lease agreement entered into in December 2019.
DA allegations
The contract, initially set for three years, was extended to April 2026 despite arrears reportedly accumulating since the last payment in September 2024.
'The Deputy Mayor of Tshwane has failed to honour a lease agreement with a struggling state entity, while extending the contract under questionable terms.
'This raises serious concerns about accountability and preferential treatment,' said Steyl.
The DA further alleges that Modise dismissed the arrears in an addendum to the lease, citing repairs done to the property.
However, the contract reportedly places maintenance responsibilities on the lessee.
'We have referred this matter to our Tshwane Spokesperson on Finance, Jacqui Uys, to investigate within the Metro Council,' Steyl said.
'We also request the Deputy Mayor and NWHC to appear before the North West Legislature's Portfolio Committee.'
The city said it can not confirm the deputy mayor's personal business in the North West.
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Modise denies owing money
Responding to the allegations, Modise said the lease agreement was signed before he took public office and that it had been impacted by the Covid-19 pandemic.
'We are not owing NWHC. We have made expensive and crucial renovations and makeover of the property, and the extension has merit,' Modise said.
He said he had declared the agreement upon entering office and dismissed the DA's claims as politically motivated.
'Please don't expect me to contaminate the relationship we have with NWHC due to political gimmicks,' he said.
Modise added that discussions around the lease were ongoing between Mzanzi Resorts, the NWHC board, and legal representatives.
'It would be disingenuous and inconsiderate to disclose the details while engagements are underway.'
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