Mpumalanga municipality split in decision over Xstrata land deal
A R2,27m land deal between Mpumalanga’s Thaba Chweu municipality and mining company Xstrata has divided the local council, with the speaker opposing the mayor’s decision to go ahead with the transaction amid indications that the land may have been earmarked for a road.
The split, coming barely two months after the new administration was elected, could affect the functioning of the troubled municipality, already being investigated by the Hawks over unaccounted sales of prepaid electricity amounting to R7m.
According to reports, council speaker Condry Mashego told a recent council meeting that the land sale to Xstrata should be reversed, while mayor Moses Marobela objected, saying the transaction should go ahead. No decision on the transaction was taken in that meeting, which left Xstrata in limbo.
Xstrata spokesman Songezo Zibi yesterday said the mining company had lost patience with the municipality and wanted the matter finalised as soon as possible.
"We need clarification.... It is either we get the land or they refund us," said Mr Zibi.
He said the company’s legal department was busy setting up a meeting with municipal officials.
The two parties entered into negotiations in 2007 when Xstrata made an offer to purchase 95 hectares of land to expand its chrome processing plant in the Lydenburg area. An agreement was reached and the money was deposited with the municipality in 2008, but the transfer of the land has not taken place.
After finalisation of the deal, it emerged that the land that Xstrata had identified was earmarked for a road . Hence the deal received objections from some in the new administration. Municipal spokesman Puleng Mapheto was not available for comment yesterday.
The Democratic Alliance (DA) this week called on Mpumalanga co- operative governance MEC Madala Masuku to intervene in the matter. "The DA makes an urgent call on MEC Masuku to initiate a full forensic investigation into this transaction, and ascertain why the transfer of ownership is still undecided," said DA Mpumalanga legislator Velley Manzini.
Mr Masuku’s spokesman, Bhobert Nkosi, said the MEC had not received any correspondence from the DA on this matter. "As soon as they do, the MEC will give it the necessary attention," said Mr Nkosi. He promised to give a full response on the matter tomorrow.
