Prominent Grahamstown businessman Rob Beer has warned that he may sue Makana Municipality for millions of rands in damages, claiming it has blocked his extensive development plans for the city.
Prominent Grahamstown businessman Rob Beer has warned that he may sue Makana Municipality for millions of rands in damages, claiming it has blocked his extensive development plans for the city.
Yesterday was Makana's deadline for the latest in a series of orders to act on a rezoning application.
Since 2010 Beer has jumped through several hoops in his efforts to acquire the right to develop land around the African Street Spar, where intends to expand the convenience store into a Spar Supermarket.
He has responded to a series of objections, each time resubmitting the application.
This week he told Grocott's Mail he had reached boiling point after four years of what he claims is incompetence and negligence by the municipality.
He said first prize for him was to work with the local municipality, but if this proved impossible, he would fight them to the end. Beer has turned to the courts and the high court in Grahamstown has now red-flagged the failure of the municipality to adjudicate on Beer's application for the rezoning of land.
The court ordered in terms of Section 6(2)(g) of the promotion of Administrative Justice Act 3 of 2000 that the application, resubmitted on 10 August last year, be reviewed.
It further ordered that the municipality must adjudicate on the application within seven days. The order was served on Monday 9 June.
In his affidavit Beer states that he has acquired the properties, intending them to become a Spar Supermarket.
His losses arise both from the holding costs of unproductive land and also from the loss of profits should the application succeed, he states. The holdings are R120 000 a year, which until now, according to court documents R4 400 000, without interest.
After the order was granted by the high court Beer said he had emailed the municipality's newly appointed acting municipal manager Themba Mnguni informing him of the consequences of the municipality's lack of action regarding this matter.
Beer said he had requested a courtesy meeting with Mnguni to advise him of his intentions to proceed with a contempt of court order should the municipality fail to comply. "Through the municipality's negligence and utter incompetence my company has lost millions of rand. I intend taking action against the municipality in due course for recovery of damages," he said.
In court documents, Beer also accused the municipality of depriving local residents of permanent job opportunities. He said he receives scores of job applications on a daily basis.
He said the municipality was holding up projects worth at least R50 million which would create about 120 new permanent jobs, with more to come from the construction phase. The businessman said his investments in the town generate millions in rates and services for the municipality and that his companies employ 61 permanent workers.
Makana municipal spokesperson Yoliswa Ramokolo confirmed that Beer had met with Mnguni. She said the matter would be discussed in today's (Friday) mayoral committee meeting. It would then be heard in the Council meeting on 20 June.
