How eThekwini Municipality sold one property to two buyers
Durban - eThekwini Municipality has been found to have “erroneously” sold a plot of land to two different parties, and was now dragging its feet in resolving the matter, despite admitting to its fault.
The plot in Newlands West was advertised by the municipality in the early 2000s, calling for potential buyers to submit their bid to purchase. The condition of the sale was that the site could only be bought and developed as a place of worship.
In 2004, the Newlands West’s Evangelical Lutheran Church SA purchased the land for R10000 and later built a church on it. The land was rezoned as a place of worship and was exempted from rates – the church only paid for water and electricity.
However, it has emerged that the city also sold the same plot to property developer Woodglaze Trading, which was owned by deceased businessman Jay Singh, two years later in 2006, without the church’s knowledge. Woodglaze Trading registered the property in 2012 with the Deeds Office.
It also rezoned the property as commercial and started accumulating rates. This was contrary to the initial proposal by the city for the land to be used only as a place of worship. A Deeds Office search revealed that the property was bonded to Engen Petroleum for R1.6million.
Woodglaze Trading has been in the spotlight for the development of allegedly substandard low-cost and middle-income housing units that mushroomed in various parts of Durban and surrounds. The company has been accused and fined on several occasions for occupying land and building illegally. It was not clear how it got an offer to purchase land that was reserved for a place of worship.
Nkululeko Nxumalo, chairperson of the Evangelical Lutheran Church SA Council, said it was only in 2017, when the construction of the church was completed, that they discovered that the site had been sold to Woodglaze Trading after they attempted to transfer the property from the municipality to the church.
Nxumalo said they were surprised to find that Woodglaze Trading was the registered owner because they had submitted all their plans to build the church and they were all approved by the municipality – and the city never raised the issue of land ownership. He said since 2017 they had pleaded with the municipality to correct the error so the church could register the property under its name.
In the correspondence between the church and the city’s officials, the city admitted that the land was sold to Woodglaze Trading erroneously and it was prepared to rectify the matter. Nxumalo said although they had bought the property, Woodglaze Trading appeared to be the legal owner which could work against the church should the company approach the court over ownership.
He said they had escalated the matter to all relevant people in the municipality who had promised to take action but nothing had been done. “When the city investigated the matter, it was found that the property belonged to Woodglaze and the transfer took place in 2012.
The property has since accumulated over R400000 in rates which is outstanding. “The city cut supply of water and electricity and we had to enter into a new agreement to have water and electricity as this issue was being resolved. “In several meetings we have had with all parties, the city admitted that it was an error, and Woodglaze was willing to transfer the property back to us.
However, the outstanding rates seemed to be an issue. Woodglaze wanted the municipality to waive the rates so the land can be transferred, which has not happened,” he said.
Municipality spokesperson Msawakhe Mayisela said the process to cancel the site against the name “Woodglaze” would take a minimum of three months.
“We sincerely apologise to the church for the inconvenience caused. “This was an unfortunate incident … we hereby assure the church that it is being corrected,“ he said.
SUNDAY TRIBUNE