Landlord wants R30m rent from govt

2012-07-08 16:25
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Johannesburg - A property developer is trying to get the North West health department to pay R30m in rental arrears for a building it leased, but has not occupied, the Sunday Independent reports.

Peolwane Properties director Reginald Kukama built the building to the department's specifications, as part of a R600m tender. The department, however, had failed to pay the monthly rental of R3.9m since the contract took effect in November.

The annual rent is R42m, and the lease is for nine years and 11 months, bringing the total value of the contract to R660m.

Although the department argues the lease is invalid, it apparently had not taken steps to nullify it.

The provincial treasury did not wish to comment on the matter to the Sunday Independent, as the case was continuing in the North West High Court in Mahikeng.

Provincial health spokesperson Tebogo Lekgethwane reportedly said the department had not moved in due to a dispute with Peolwane, and that the government was negotiating to buy the building.

- SAPA
Read more on:    mahikeng  |  local government
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