A decision by the Kumkani Mhlontlo municipality to lease land for a proposed shopping mall in Tsolo has sparked anger among residents, politicians and businesspeople, who are questioning the process and motives behind the development.
The proposed mall is earmarked for construction on a portion of land owned by the municipality.
But former municipal speaker Xolile Nkompela described the decision as “rush rush” during a heated business breakfast meeting hosted by Mhlontlo mayor Mbulelo Jara on Tuesday.
“You did not review the municipal spatial development plan, you got excited and made the decision [to lease] before reviewing the spatial plan,” he said while addressing the municipal contingent led by Jara.
“If someone among yourselves who stands to be benefiting, makabuyise unyawo [must refrain from this]. If you proceed [with this decision], there will be a legal process that we will embark on.”
Nkompela’s warning came after Jara told those attending the breakfast that the session formed part of the municipality’s ongoing consultations with stakeholders over the proposed mall.
“We took a resolution in council. People in Tsolo have been criticising us for a lack of development. They are not wrong,” Jara said.
He said the municipality was already embroiled in a constitutional court case with a developer over land near Tsolo Junction, in which the council had been ordered to pay about R100m.
In 2019, the Dispatch reported that the Mthatha high court had ordered the municipality to pay nearly R100m to developer TDH Tsolo Junction, which had sued the council over a housing project that never got off the ground.
“Instead of development, there was a [court] case. Here, in Tsolo, we have received a lot of criticism and fairly so,” Jara said.
He said the municipality had not anticipated challenges to the shopping development, but believed some of the opposition stemmed from an information gap among residents.
“Each development has its stages. Some are saying a church will be demolished, others say the municipal hall will be demolished.
“There are allegations of bribery. We have a hotline to report corruption,” Jara said.
“If you have any tangible proof of corruption, you can also give tips anonymously to the hotline or even go to the police so that everything can come out in the open.”
He said the municipality did not want to fail the people of Mhlontlo because of unsubstantiated claims.
Mhlontlo’s local economic development portfolio head and mayoral committee member Siphenkosi Voko said a developer interested in the project had approached the council through unsolicited bidding.
He said the proposal had been accepted and the development would form part of the municipality’s mixed land-use management plan for the Tsolo CBD.
The project was expected to create at least 200 jobs, including during construction.
He said most of the land in Tsolo was landlocked and that development outside the CBD was difficult because of the challenges of attracting investors.
“If you go out of the CBD, there is a challenge with attracting investors. Hence, if you want to bring development in the smaller towns, you should target the CBD,” Voko said.
“There is not enough land in town to push through development.”
He said the municipality would not be selling the land, but leasing it to the investor.
Municipal spokesperson Mamela Mangcotywa said last week that the lease agreement had not yet been concluded.
She said Tsolo residents had limited shopping options and, because there was no shopping complex in the town, many travelled to Mthatha or KwaBhaca to shop.
“We haven’t signed anything yet. Our lawyers are busy working on the draft lease agreement with the developer,” Mangcotywa said.
But this week, a visibly unimpressed Nkompela dismissed suggestions that there was not enough municipal land in Tsolo.
He cited several pockets of land within the urban centre which could be used to promote development.
“The reality is that this process is not open, not genuine and not helpful to the people of Tsolo,” Nkompela said.
“This rush rush of a thing you came with is not going to work.”
Tsolo businessman Goodman Andile Cele said the municipality should reopen the process and allow local developers to compete.