Document SRC-0001
Agenda: Mayoral Committee Meeting 2026-03-25 (incl. item 7.3.2 review and rescission of in-principle approvals to lease municipal properties)
- Retrieved
- 29 October 2026
- Archived copy
- An archived copy is held by the project
- Why it matters
- Item 7.3.2 records National Treasury view that delegation EM85 and policy deviation clause for property leases are unlawful; recommends rescinding 12 in-principle lease approvals. Also VTS privatisation, Erf 748 Franschhoek disposal, Mountain Breeze, informal trading hubs.
Original document
Claims citing this document
- VerifiedEditor-approved Figure: stage unknown A Mayco agenda item of 25 Mar 2026 (7.3.2) asks Council to rescind 12 in-principle approvals to lease municipal property, including three parking leases, 'Technopark Parking' (portion of Erf 9190), 'Happy Folks Parking' (portion of Erf 8116) and 'Mercedes Benz parking' (Erf 52), because, the item says, National Treasury's comments (the annexed 27 June 2025 letter on the Stellenbosch Flying Club lease, one of the 12) mean that the property policy's deviation from a competitive process and the June 2022 delegation (EM85: leases under 10 years and under R5m to the Executive Mayor with Mayco) are not in line with the MFMA and Municipal Asset Transfer Regulations; the letter itself does not mention EM85 or the June 2022 delegation and does not call the policy or the delegation unlawful, though it notes that the property policy gives both Council and the Executive Mayor 'certain powers to decide on deviations from public competition' and advises the municipality to review it (PDF p.210). The item also says the public participation processes were not completed owing to 'a severe staff shortage' in Property Management.
- VerifiedEditor-approved A Mayco item for 25 Mar 2026 (7.1.4) proposes leasing the municipal vehicle testing station at Stellenbosch Traffic Services (1 Joubert Street) to a private operator for 10 years by tender, because it runs at a loss: tariffs are set by the provincial MEC under Regulation 139(1)(b), the station dates from 1982 and most equipment is over 10 years old; it says the loss contributes to the Traffic Department's budget deficiencies.
- VerifiedEditor-approved On 22 June 2022 a Special Council meeting of Stellenbosch Municipality (item 9.2.3, resolved nem con) adopted an amended System of Delegations effective 1 July 2022.
- VerifiedEditor-approved National Treasury (Chief Director: MFMA Implementation, Wayne McComans) wrote to Stellenbosch Municipality on 27 June 2025, responding to a municipal request received 19 May 2025 on a proposed long-term lease of Farm 502L to the Stellenbosch Flying Club. The letter said it was unclear whether alternative proposals were received, that the information statement was not provided, that the current lease agreement does not address all the minimum terms in MATR regulation 45, that the council item merely noted aircraft-noise objections, and advised the municipality to review its property policy, under which both Council and the Executive Mayor may decide on deviations from public competition, against SCM regulation 40 read with MFMA sections 115 and 117.
- DisputedEditor-approved
- VerifiedEditor-approved The municipality attributed the failure to finalise public participation or return items for these approvals to 'severe staff shortages in the Property Management Department over the last four years'.
- VerifiedEditor-approved The 25 March 2026 item recommended that the EM85 delegation be removed with immediate effect and that the Property Management Department immediately update the property management policy, bringing the 12 items back once the policy is finalised.
- VerifiedEditor-approved The municipality stated that because the leases will not be implemented, no income will be received for some of these properties; it did not quantify the amount.