On 8 October 2019, the Johannesburg High Court handed down judgment in Cedar Park’s urgent application to have water restored to the remainder of the property on which the Sandton Gautrain Station is situated.
In a scathing judgment in which Judge Adams found that the urgency of Cedar Park’s application was “self-created”, the High Court struck Cedar Park’s application from the court roll due to a lack of urgency. The High Court further ordered Cedar Park to pay the City’s legal costs.
Given that Cedar Park and Regiments Capital will tomorrow be subject to business rescue and liquidation applications before the High Court, the City is relieved to have sought security of costs from Cedar Park to the value of R1m. This will ensure that the City’s legal costs in relation to this court case are covered and public money will not be wasted.
Last week, the City agreed to provide the Sandton Gautrain Station with its own water meter which will result in the City now billing the Gautrain directly for its water usage.
Following this judgment, the taps will remain dry at the remainder property until Cedar Park settles their over R7m debt with the City.
To date, Cedar Park has refused to pay for its property rates and services.
The City cannot reconnect water to defaulting corporate customers who think they can bully the City into submission.
The Executive Mayor, Cllr Herman Mashaba, said that it is frankly unethical for a private company to expect government to incur costs while providing it with free services.
“This, while our residents are expected to fork out their hard-earned money on a monthly basis.”
Cedar Park is heavily linked to Regiments Capital, a company at the centre of state capture allegations. Cedar Park was established by Regiments as a special purpose vehicle to acquire the land on which the Sandton Gautrain Station is situated from the City of Johannesburg in 2009.
The property was transferred to Cedar Park in 2013 and for the past 6 years, Cedar Park has failed to pay for its property rates and services which resulted in the City cutting water supply to the property last month.
This sale transaction to a Gupta-linked company that had no track record in property development is currently being investigated by the City.
“I have noted the bizarre statement and demand to stop our forensic investigation into this matter issued by Gauteng Public Transport and Road Infrastructure, MEC Jacob Mamabolo under the banner of the South African Communist Party, which he serves as provincial secretary,” Mayor Mashaba said.
“Given MEC Mamabolo’s extensive communication on this matter in his official position as MEC, this latest stunt only serves to further blur the lines between party and state.
“It is quite frankly opportunistic for MEC Mamabolo to abuse his position within the SACP, to insert the SACP into a matter for which it has no involvement.
“Even more perplexing is the insinuation that I seek to undermine the Zondo Commission of Inquiry by running a forensic investigation parallel to the work of the Commission. This is far from the truth.
“South Africa’s anti-corruption efforts would be dealt a heavy blow if every public representative simply chose to throw their hands in the air at the first sign corruption-related activity in their municipality or department. Unlike MEC Mamabolo, this is one thing I will never do.
“MEC Mamabolo’s apparent discomfort at the City’s efforts to get to the bottom of this alleged criminality only motivates me further to ensure the City finalizes this investigation as a matter of urgency.”
Far from seeking to undermine the work of the Zondo Commission of Inquiry, Mayor Mashaba said he has made it clear that corruption is public enemy number one in Johannesburg and the City must investigate all allegations of such criminality.
“Should the forensic investigation into the sale of this prime Sandton land to a Gupta-linked company make any findings of wrongdoing, the City will gladly provide this evidence to the Zondo Commission; as well as any other investigations we have concluded that may be helpful in ridding our society of corruption.
“I will not rest until the City gets to the bottom of this alleged criminality and ensure that those who have elected to abuse public office and steal from our residents face the full might of the law.”
