NATIONAL NEWS - Information received by Boksburg Advertiser suggests the municipality is proposing to terminate long-term leases for council-owned facilities, in order to amend the rental value to charge tenants.
Although the metro has not yet responded to their lists of questions, the DA claimed the targeted council-owned properties on the East Rand include those that are being used as old age homes, recreational parks and NGOs.
According to Clr Khetha Shandu, DA Chief Whip in Ekurhuleni, the City’s primary reason behind the proposed plan is to establish a market related rental price to charge tenants for their facilities.
“The local government resolved that where long-term leases are terminated, they must be advertised in a public tender with the aim of receiving better rentals for the metro.
“The DA in Ekurhuleni is greatly concerned that vulnerable communities are being targeted for political expedience after the City bullied through the proposal to terminate certain long-term lease agreements,” said Shandu.
He said the DA fought against specific lease categories being included in the termination process, with a specific focus on social properties.
The party is against termination of lease agreements for properties which offer a safe refuge, medical facilities, frail care, hospitalisation and recreational activities, and which enhances the value of the Ekurhuleni property.
“As the DA, we are concerned with how this item has appeared out of nowhere and we have fought tirelessly to ensure that properties in the category of social, cultural and recreational are not affected.
“Government healthcare facilities and clinics are struggling to assist the communities. Most of them have staff shortages, lack of equipment and are overburdened to the extent of being dysfunctional.
“By ruthlessly cancelling these leases, these recreational and social facilities will now need to tender to renew these leases. In addition, many have invested in upgrading the properties to better serve their communities.
“Every lease needs to be thoroughly interrogated and a blanket approach to cancel long-term leases is short-sighted. There can be no unilateral decisions to cancel leases if there has been no breach of contract. Preventing revenue loss and maximising income is a priority, but not at the expense of vulnerable people.”
Shandu pointed out that some of the long-term leases were entered into between the lessee and the municipality over 40 years ago.
