Walter Sisulu asset lease faces scrutiny after council vote

The Democratic Alliance (DA) has formally requested the Hawks to investigate a controversial long-term lease agreement involving several key municipal assets in the Walter Sisulu Local Municipality, arguing that serious questions remain over the procurement process and the validity of the consortium involved.

The assets at the centre of the dispute include the Aliwal Spa Holiday Resort, Buffelspruit Nature Reserve and the Oppie Bron Flats.

According to DA Walter Sisulu caucus leader Magda Botha, the party exhausted internal oversight mechanisms before taking the matter to the Hawks.

The DA says ANC councillors approved the long-term lease agreement during an ordinary council meeting on 30 June despite repeated objections from opposition parties over what they describe as procedural irregularities and political interference in the process.

Botha said the concerns had been raised over several months during Executive Committee and Council meetings and were also referred to Provincial Treasury for investigation in October last year.

During the council meeting, opposition parties reportedly voted against the agreement, but the ANC majority carried the item, allowing the consortium agreement to proceed towards implementation and possible signing.

The matter has now been escalated by DA national spokesperson on Cooperative Governance and Traditional Affairs, Marina van Zyl, who wrote to the Hawks requesting an investigation into the validity of the consortium agreement and the procurement process surrounding it.

In her letter to the Hawks, Van Zyl said the municipality proceeded with final approval despite unresolved disputes regarding the consortium’s composition and the authority of some individuals and entities listed as members.

The letter states that some individuals and businesses named as consortium members had denied signing or authorising the agreement, while one business was allegedly incorrectly listed in consortium documentation.

The DA further claims that revised consortium documentation was later presented to council reflecting different members without fully addressing the earlier concerns.

Despite this, council approved the conclusion of the notarial lease agreements on 30 June while the dispute remained unresolved.

The party said it supports public-private partnerships as a means of attracting investment, creating jobs and generating revenue from municipal assets, but insisted that procurement processes must comply fully with legislation and be free from irregularities.

The DA said it remains committed to transparency and lawful governance and will continue to push for accountability in the management of municipal assets within Walter Sisulu Municipality.

Walter Sisulu Municipality had not responded to requests for comment at the time of publication.