Madonsela to probe Cape Town-Naspers deal

2012-03-14 14:17

Public Protector Thuli Madonsela is to investigate a proposed property deal between Cape Town City and media holding company Naspers.

ANC Chief Whip Mathole Motshekga said today he had asked her to “investigate the suspicious City of Cape Town-Naspers multimillion rands property deal”.

The Democratic Alliance-run City of Cape Town was intending to buy “a piece of parking space” from Naspers, which independent property analysts had valued at no more than R50 million, for a “whopping” R106 million, according to Motshekga.

The value looked heavily inflated and raised questions regarding “who is set to benefit out of the deal”, the chief whip said in a statement.

“We are pleased that the Public Protector has already made an assessment of our complaint and has concluded that it is within her jurisdiction.” he said.

She had also confirmed that she would conduct a preliminary investigation into the allegations, and an investigator had already been assigned to work on the complaint, Motshekga said.

In a letter to Madonsela, Motshekga said that according to press reports, the city was set to buy the parking space from Naspers for the expansion of the Cape Town International Convention Centre, in which the city was a shareholder.

“The deal between the City of Cape Town and Naspers, as it stands, looks extremely suspicious and dubious,” he wrote.

Property analysts believed the R3?000 per square metre was way above what an average vacant piece of land would fetch in the city.

The deal amount had even surprised Mansoor Mahommed, former City of Cape Town executive director who now worked at a property development company, who regarded it as a “high” price.

“This transaction, dubbed ‘an extremely sweet deal for Naspers’ due to the extraordinarily and unjustifiably high price involved, raises serious questions regarding the nature of the relationship between the DA and Naspers,” he said.

“We are concerned that a company that, through its media publications prides itself on being the public watchdog and acting in the interest of the public, is expecting the public to fork out R56 million more on a piece of parking space.”

Motshekga called for the deal to be suspended until the investigation was concluded.

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.
NEXT ON NEWS24X

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Comments have been closed for this article.

Inside News24

 
/Sport

Book flights

Compare, Book, Fly

Traffic Alerts
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.