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Drakenstein buys building for R24.5M

Drakenstein buys building for R24.5M
 
2008-10-23


THE purchase of the Sentra­sure building by Drakenstein Municipality to the tune of R24 508 000 was approved by the town council at a special meeting last week following a walk-out on the issue by the DA at a previous council meeting.

A recommendation by the Mayor, Charmaine Manuel, at the special council meeting last week, that the capital budget be adjusted due to the acquisition of the Sentrasure building, was approved by 33 votes to 23, with two abstentions (WCC).

The DA and other opposition parties contended that the Municipal Manager, Dr Sidima Kabanyane, had bought the Sentrasure building on auction without the approval of the council.

Initially Drakenstein Municipality had budgeted for the construction of a new wing at the civic centre over three financial years in the capital budget, starting this year. The total cost for the wing would be R33 567 587 over three years.

On 20 August the Municipal Manager, Dr Sidima Kaban­yane, approached the Executive Mayoral Committee for permission to bid for the Sentrasure building that was to be auctioned the next day.

At last week’s meeting the DA once again voiced its concern that the decision to spend the purchase price on the building, R15 million over budget for the current year, was irregular and pointed out that they would not take responsibility for any losses which might arise from the purchase.

This includes cash flow problems, the possibility that the Drakenstein Municipality may not be able to sustain its three year lease of the Landbank building (currently used to accommodate the staff overflow from the civic centre), as well as possibly fruitless expenditure on architectural fees for the planning of the extension of the civic centre.

The expenditure would be detrimental to infrastructure main­tenance and development, the DA maintained, and requested that their opposition to the decision be minuted, with a view to future investigation of what they consider to be a contravention of municipal legislation.




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