The Lesedi local municipality spent nearly R1.9 million – a total of R1,867,532 – on improvements to properties earmarked as a mayoral residence in Heidelberg. The expenditure occurred on Erf 1812 and Erf 1813 in Bergsig Extension 9, but the building of the mayoral house was later discontinued by a council resolution.
Building of Mayoral House Discontinued
The municipality approved the expenditure, but later halted the project before completion. No explanation was provided for the decision to abandon the development, nor whether any accountability processes followed.
Municipal Manager S’busiso Dlamini stated that the properties are currently valued as vacant land and are exempt from municipal rates. He explained that once construction is completed and an occupation certificate is issued, a supplementary valuation will be conducted to reflect the improved value.
Mayor’s Undervalued Heidelberg Home
Concerns have also been raised regarding the valuation of Mayor Mluleki Nkosi’s personal home in Berg En Dal, Heidelberg Extension 12. The mayor purchased the erf in June 2019 for R640,000 and subsequently built a double-storey home.
Despite the improvements, the property is listed on the municipality’s valuation roll at R800,000, while its market value is estimated to be more than R3.5 million. The property includes a double-storey house, double garages, and an enlarged paved parking area on a 2,065m² land.
Incomplete Construction Given as Reason for Property Valuation
According to S’busiso Dlamini, the property was valued as vacant land given that construction was still in its initial stages as of July 1, 2023, the date used for the general valuation roll. This valuation aligns with the Municipal Property Rates Act and the principles of the International Valuation Standards (IVS) and the South African Council for the Property Valuers Profession (SACPVP).
Frequently Asked Questions
Why was the mayoral residence project discontinued?
According to the municipality, a council resolution was taken to discontinue the building of the mayoral house, but no explanation was given as to why the project was halted after significant funds had already been spent.
How will the mayoral residence be valued once completed?
Once construction is completed and an occupation certificate is issued, the municipal valuer will conduct a supplementary valuation to reflect the improved value of the property.
When was the general valuation roll implemented?
The general valuation roll was implemented with effect from 1 July 2024, with a prescribed valuation date of 1 July 2023.
As the municipality moves forward with issuing an occupation certificate for the mayor’s residence and conducting a supplementary valuation, will these steps address the concerns raised about the fairness and transparency of property valuations in the Lesedi local municipality?
