A member of the Ndabeni Communal Property Trust (NCPT), a trust serving about 500 claimants, and a claimant have asked police to probe the circumstances that led to a pre-sale agreement to sell the land near Maitland for commercial and residential use.
"Two people, allegedly former trustees, are being implicated. We have to conduct a thorough investigation, interview and obtain statements from all relevant people, consult with the DPP (Directorate of Public Prosecutions), and when it is required in terms of the law, make arrests," said police spokesperson Billy Jones.
Documents in the possession of the Cape Times include a "Heads of Agreement Wingfield" which trustees, property consultants Amdec and the Wingfield City Advice and Management (WCAM) signed on July 10.
| 'The state attorney is looking into this matter' |
A week later, an NCPT meeting decided against the deal and barred trustees from communicating with Amdec, WCAM or any other developer. Beneficiaries' approval and proper legal advice were not obtained prior to the agreement, a trust resolution read.
NCPT's lawyer, Brent Williams of Cliffe Dekker Incorporated, then wrote to Amdec and WCAM managing directors James Wilson and Kent Kihl respectively, informing them of the decision.
Some trustees alleged their "consent" for the agreement appeared to have been obtained fraudulently on their behalf, Williams's letter said.
On Amdec's behalf, Theuns Steyn of Deneys Reitz Attorneys responded to Williams and said Kihl had approached Wilson and informed him that the trust had mandated WCAM to advise it on Wingfield's development.
| 'The city has only heard it via the grapevine' |
"The signatories were Mr Wilson, on behalf of the consortium, Mr Kihl, on behalf of WCAM, and five trustees reflected as the current trustees of the Trust on the Master's Certificate dated March 23, 2007," Steyn's response read.
Steyn's letter also objected to allegations of fraud contained in correspondence from Williams.
Among the documents in the Cape Times's possession is a letter from Divaris Property Brokers to Kihl indicating seven of 11 potential buyers that showed interest in the property. These included Old Mutual Properties, with an offer of R350-million - later withdrawn - and a R660-million offer from Property Partners.
There are also monthly reports - apparently from Kihl - to the trust. One states that the land value would be low if split between 496 beneficiaries.
The Amdec deal meant each beneficiary could get R1,2-million in cash and have shares in the venture. If kept, shares could generate about R150 000 a year for each beneficiary.
"It has been reiterated many times that beneficiaries are old and they cannot wait much longer to see the benefits of this land," another report read.
In a separate report Kihl proposes paying the trustees for "the work they have done and the enormous work that lays (sic) ahead".
Pogiso Molapo, City Council manager for land restitution, said it was government policy that land meant for restitution could not be sold within 10 years of its return to claimants.
"The state attorney is looking into this matter. The city has only heard it via the grapevine.
"It has never happened that land to claimants gets sold to developers.
"The Ndabeni restitution claimants' land is a government donation which cannot be sold without the state's consent.
"We are working closely with the LCC and will be watching this matter. The city has spent about R30-million installing bulk services for that area and can't allow some developer to come and do as they please," he said.
Sam Molepo, LCC deputy director (post settlement), said: "It came to our attention that there are problems about the sale of land.
"We referred the matter to the state attorney and expect some feedback.
"The purpose of land restitution is to give people land, and if we allow them to sell it, it defeats the purpose. This commission's view is that the land should not be sold." - Cape Times
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