Johannesburg Property Company retreats amid backlash over parks cash grab

Daily Maverick

2 days ago

Johannesburg Property Company's moves coincide with the sorry state of the city's finances — under the spotlight ahead of next year's municipal elections — giving rise to the impression of a rent-seeking dash for cash while the trough remains open.
The Johannesburg Property Company's (JPC) attempts to 'alienate' historic properties, including public spaces for sale or lease, seem to be coming unstuck.
Concern erupted among Johannesburg residents after a council agenda in late June suggested that several public open spaces – including Marks Park and surrounding greenbelt areas – could be up for sale or re-leasing agreements.
Daily Maverick can also report that the Bryanston Sports Club has been on JPC's radar screen, but it is undermining its attempts to monetise such assets through its blundering approach.
The initial flagging of designs on Marks Park triggered a widely circulated petition opposing the moves, which garnered 13,300 signatures. The petition was submitted to JPC.
On Wednesday, 30 July, it was announced during a council meeting that an item regarding the alienation of Marks Park was withdrawn – nipping the process in the bud, for now.
'This is a small victory for us because it might come back. But at least our voices have been heard,' Nicolene Jonker, DA councillor for Ward 88, said in a video message to residents.
Bryanston Sports Club targeted
The Bryanston Sports Club has also been targeted – but in an opaque and ham-fisted manner.
On 5 June, an undated notice providing for 14 days of public participation for a change in the leasing arrangements of 'Portion 1 of erf 4668 Bryanston' – effectively the sports club and municipal library on the grounds – was discovered on the floor of the clubhouse.
Club manager Pat Carolin told Daily Maverick that two serious errors were immediately spotted in the notice – it was pointedly undated, and the period is supposed to be 30 days, not 14. The notice also seemed to have been pinned on the sly on a door, and then fell to the floor. Daily Maverick has had sight of this notice.
A subsequent government gazette notice published on 15 July made no mention of the lease and instead referred to public participation for the proposed development and sale of the property – contradicting the original notice.
'This discrepancy is worrying,' Carolin said.
Carolin met JPC general manager Sizeka Tshabalala at the Bryanston Sports Club on Tuesday, 5 August, along with the ward councillor. Tshabalala said JPC acknowledged the error in the gazette and said it would restart the 'public participation process'.
The Bryanston lease ran out in 2019, and Carolin said they had tried several times to renew it on a long-term basis, but to no avail. It is now on a month-on-month basis.
The club's annual lease is R1,500 (R125 a month), but it does all of the maintenance, spending an average of R1.2-million a year over the past three years. As a non-profit, it funds this upkeep from membership fees and local sponsors.
Some private investors will come to the party – but the club needs a long-term lease agreement for that to happen.
'We are providing a service to the community, that is our mandate, and so we should not be commercialised or pay market rates. If we pay market rates, we will expect the JPC to maintain the asset,' said Carolin, who Daily Maverick spoke to at the clubhouse on Tuesday, 5 August.
'We are concerned that they want their bread to be buttered on both sides, get the rent and have the tenant pay for the upkeep. We are distrustful of their motives because of their lack of communication,' he said.
In response to our queries, JPC confirmed a mistake had been made in the gazette and an erratum has been made to correct the error, confirming a public participation process for the lease of the property.
JPC's moves come as the sorry state of Johannesburg's finances comes under the spotlight ahead of next year's municipal elections – giving rise to the impression of a rent-seeking dash for cash while the trough remains open.
The Sunday Times and Bloomberg have reported that Finance Minister Enoch Godongwana has given Joburg Mayor Dada Morero 14 days to explain how he plans to fix the city's finances and recoup R2.4-billion lost in 'unauthorised, irregular, fruitless and wasteful expenditure.'
Against this backdrop of increased scrutiny and a lack of trust among the City of Gold's long-suffering ratepayers, the JPC would do well to get its ducks in a row. Putting a date on public participation notices would be a good start. DM