Key Takeaways:
- More than 20 Phoenix residents have been left financially and emotionally devastated after paying hundreds of thousands of rands to a property developer implicated in a Special Investigation Unit (SIU) report.
- The residents claim they have not received completed homes or transfers, despite court orders, and have opened criminal cases and laid complaints with the SIU and the office of the eThekwini Mayor.
- The SIU report revealed irregular land sales and corrupt relationships between developers and municipal officials, with the developers failing to comply with the provisions of the Constitution and the Municipal Finance Management Act.
- The residents are demanding accountability and seeking refunds, with some having lost their life savings and suffering from stress and health problems as a result of the ordeal.
Introduction to the Crisis
The dream of owning a home has turned into a nightmare for more than 20 Phoenix residents who have been left financially and emotionally devastated after paying hundreds of thousands of rands to a property developer implicated in a Special Investigation Unit (SIU) report. The report revealed irregular land sales and corrupt relationships between developers and municipal officials, leaving the residents with incomplete homes, no transfers, and significant financial losses. The residents have since opened criminal cases and laid complaints with the SIU and the office of the eThekwini Mayor, seeking accountability and refunds.
The Residents’ Plight
Thasmeena Moola, 46, is one of the affected residents who paid a R300 000 deposit for a home in Longcroft in 2018. However, the house took years to build, and the family later discovered that the building plans were not approved. Despite seeking the help of an attorney and approaching the Durban Magistrate’s Court, Moola has not received a refund, and the developer has ignored court orders. Ashena Malek, 44, also paid R553 329.90 towards a house in Foresthaven in 2018, but the building stopped after the foundation and walls were done, and the developer demanded extra payments. Malek has since cancelled the agreement and demanded a refund, but her calls have been ignored.
The Scale of the Problem
The problem is not isolated to just a few residents, with more than 20 people affected by the developer’s actions. Richard Govender, 58, paid R550 000 to purchase a home for his daughter in 2017, but the house was never transferred, and the family received an eviction letter. Padi Alaraju, 67, and four relatives collectively paid more than R2 million for plots of land in 2018, but nothing has happened in the past seven years. Claude Chinniah, 48, signed four different sales agreements over the years, but every time the house was nearly completed, it was sold to a cash buyer. Raj Balraj, 63, paid R500 000 for a home in Clearhaven in 2016, but the land had issues, and the plans were not passed, resulting in the construction being stopped.
The SIU Report
The Special Investigation Unit (SIU) released a report into their investigation on the maladministration in the affairs of the eThekwini Municipality in August this year. The report revealed several irregularities in relation to the sale and purchase of various municipal-owned land, including community parks and sport grounds in Phoenix. The report found that the disposal of or alienation by the municipality did not comply with the provisions of the Constitution and the Municipal Finance Management Act. The SIU also found that the appointment of developers was made in contravention of the Supply Chain Management (SCM) legislation and prescripts.
The Way Forward
The SIU has finalised its internal processes to refer the matter for civil litigation in the Special Tribunal, seeking to recover losses suffered by the municipality. The residents are hoping that the developer will be held accountable and that they will receive refunds for their losses. The eThekwini Municipality has a responsibility to ensure that its officials are held accountable for their actions and that the residents receive justice. The residents are refusing to be silent and are demanding that the truth be exposed, and those responsible be brought to book. The case highlights the need for greater transparency and accountability in the property development sector and the importance of protecting the rights of consumers.