Public Land and Property Leases
The property-leasing irregularities identified in the March 2026 mayoral committee agenda, and the wider record of municipal land transactions.
Key findings
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.
Sources: Agenda: Mayoral Committee Meeting 2026-03-25 (incl. item 7.3.2 review and rescission of in-principle approvals to lease municipal properties) (original, opens in a new tab) ↗ · details; Stellenbosch Municipality Mayoral Committee agenda 25 March 2026, item 7.3.2: Review and rescission of several in-principle approvals to lease municipal owned properties (pp. 198-207 excerpt) (original, opens in a new tab) ↗ · details — agenda p.207, para 6.4
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.
Source: Agenda: Mayoral Committee Meeting 2026-03-25 (incl. item 7.3.2 review and rescission of in-principle approvals to lease municipal properties) (original, opens in a new tab) ↗ · details — agenda pp.209-211 (Annexure 1 to item 7.3.2); p.198 (item's 'May 2025' dating)
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'.
Sources: Agenda: Mayoral Committee Meeting 2026-03-25 (incl. item 7.3.2 review and rescission of in-principle approvals to lease municipal properties) (original, opens in a new tab) ↗ · details; Stellenbosch Municipality Mayoral Committee agenda 25 March 2026, item 7.3.2: Review and rescission of several in-principle approvals to lease municipal owned properties (pp. 198-207 excerpt) (original, opens in a new tab) ↗ · details — agenda pp.198-199 para 4; p.201 para 6.2.1
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.
Sources: Agenda: Mayoral Committee Meeting 2026-03-25 (incl. item 7.3.2 review and rescission of in-principle approvals to lease municipal properties) (original, opens in a new tab) ↗ · details; Stellenbosch Municipality Mayoral Committee agenda 25 March 2026, item 7.3.2: Review and rescission of several in-principle approvals to lease municipal owned properties (pp. 198-207 excerpt) (original, opens in a new tab) ↗ · details — agenda pp.199-200, para 5(c),(d),(f)
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.
Sources: Agenda: Mayoral Committee Meeting 2026-03-25 (incl. item 7.3.2 review and rescission of in-principle approvals to lease municipal properties) (original, opens in a new tab) ↗ · details; Stellenbosch Municipality Mayoral Committee agenda 25 March 2026, item 7.3.2: Review and rescission of several in-principle approvals to lease municipal owned properties (pp. 198-207 excerpt) (original, opens in a new tab) ↗ · details — agenda p.206, para 6.3
VerifiedEditor-approved
MEC Bredell's spokesperson Wouter Kriel told Eikestadnuus (26 June 2026) that there was no conclusion yet on whether there was serious malpractice or maladministration and that the MEC was still awaiting Provincial Treasury's assessment and the Legal Services review. No outcome had been published by 29 October 2026.
Source: Stellenbosse munisipale transaksies dán bekyk, sê LUR-woordvoerder (original, opens in a new tab) ↗ · details — article body (Kriel quotes)
VerifiedEditor-approved
Eikestadnuus reported (31 March 2025) that objections lodged in the public participation process included the Van der Stel Sport Council, Friends of Stellenbosch Mountain, 13 individuals and a petition with 1 340 signatures.
Source: Stellenbosch FC gets Van der Stel complex, despite strong opposition (original, opens in a new tab) ↗ · details — article body
VerifiedEditor-approved Figure: stage unknown
Stellenbosch Municipality tendered the Transvalia Complex (erven 825, 1123, 1133, 1128, 1134, 1142 and 1160, Dorp Street) under Tender B/SM 111/24 (closing 26 August 2024) for tourism-related redevelopment on a long-term lease of not more than 30 years subject to Council approval, retaining 143 public parking bays; the combined 2021 municipal valuation was approximately R23.27 million.
Source: Tender B/SM 111/24: Re-development and Lease of Transvalia Properties (tender document with adverts and drawings) (original, opens in a new tab) ↗ · archived copy of Tender B/SM 111/24: Re-development and Lease of Transvalia Properties (tender document with adverts and drawings) (opens in a new tab) · details — bid notice; specifications printed pp.46-48 (PDF pp.48-50) (paras 1.2-1.4, 2.3-2.4, 3.1)
VerifiedEditor-approved
At a Special Council meeting on 23 February 2022 (item 8.11.2, nem con) Stellenbosch Council confirmed that Eikestad multi-level parking would be done through a public-private partnership and resolved that, given the PPP project life cycle, the parking be leased out on a short-term basis until the PPP process is finalised, subject to public comment and a final Council decision.
Source: 25th Council meeting 2024-08-23, item 10.6.2: Request for approval of the Eikestad Parking Public Private Partnership Feasibility Study (with Annexure 1 feasibility report) (original, opens in a new tab) ↗ · details — item 10.6.2 agenda p.8, para 6.6 (Special Council 2022-02-23 item 8.11.2 (e)-(h))
VerifiedEditor-approved
Municipal Notice 96/2022 invited public comment and alternative proposals, by 19 August 2022, on a proposal to lease the Eikestad Parking Area to Eikestad Mall Management on a short-term basis with an option of annual renewal until the PPP process is finalised.
Source: Municipal Notice No. 96/2022: Notice for public comment – short-term lease of Eikestad Parking Area, Stellenbosch CBD (original, opens in a new tab) ↗ · archived copy of Municipal Notice No. 96/2022: Notice for public comment – short-term lease of Eikestad Parking Area, Stellenbosch CBD (opens in a new tab) · details — Notice 96/2022 paras 2, 3.4, 3.5
VerifiedEditor-approved Figure: stage unknown
The Eikestad Parking PPP feasibility study tabled at Council on 23 August 2024 proposed a 498-bay multi-storey build-operate-transfer facility on the Eikestad open parking area, built and run by a private party for about 25 years, with an estimated construction cost of R99.4 million (excl. VAT) and an initial investment that 'may be more than R 124.1 million'; final National Treasury views were still awaited.
Source: 25th Council meeting 2024-08-23, item 10.6.2: Request for approval of the Eikestad Parking Public Private Partnership Feasibility Study (with Annexure 1 feasibility report) (original, opens in a new tab) ↗ · details — item pp.1-4 (BOT, ~25 years); feasibility study at agenda p.29 (498 bays), p.34 (R124.1m), p.43 (R99 439 000 excl. VAT); p.10 (final NT views awaited)
VerifiedEditor-approved Figure: stage unknown
Audited rental income from municipal fixed assets was about R11-12m a year between 2021/22 and 2024/25 (R12.2m, R12.4m, R11.1m, R11.7m).
Source: National Treasury Municipal Money API: Income & expenditure (Table A4 / v2) annual aggregates for WC024 by item, financial year and amount type (budget stages and audited) (original, opens in a new tab) ↗ · archived copy of National Treasury Municipal Money API: Income & expenditure (Table A4 / v2) annual aggregates for WC024 by item, financial year and amount type (budget stages and audited) (opens in a new tab) · details — item 1400, AUDA FYE2022-2025
VerifiedEditor-approved Figure: stage unknown
At 30 June 2025 Stellenbosch Municipality's property rental debtors stood at R33.1 million gross, of which R32.4 million (about 98%) was provided for as impaired, leaving R0.74 million net.
Sources: Stellenbosch Municipality Audited Annual Financial Statements for the year ended 30 June 2025 (original, opens in a new tab) ↗ · details; Report of the Auditor-General to the Western Cape Provincial Parliament and the council on Stellenbosch Municipality, year ended 30 June 2025 (original, opens in a new tab) ↗ · archived copy of Report of the Auditor-General to the Western Cape Provincial Parliament and the council on Stellenbosch Municipality, year ended 30 June 2025 (opens in a new tab) · details — AFS note 5.2; AGSA para 8
Allegations and disputed matters
Accepted by the editor as accurately reported, but contested by credible sources or by the institution concerned. These are not findings of this publication. Counter-evidence and official responses are shown with each item.
DisputedEditor-approved
Sources: Agenda: Mayoral Committee Meeting 2026-03-25 (incl. item 7.3.2 review and rescission of in-principle approvals to lease municipal properties) (original, opens in a new tab) ↗ · details; Stellenbosch Municipality Mayoral Committee agenda 25 March 2026, item 7.3.2: Review and rescission of several in-principle approvals to lease municipal owned properties (pp. 198-207 excerpt) (original, opens in a new tab) ↗ · details
Counter-evidence: None recorded.
Official response: None recorded yet.
What remains unknown
- What did the 2022 delegation of leasing powers authorise?
- Which twelve property transactions were affected, and on what terms?
- What concerns did National Treasury raise in 2025?
- What did the subsequent provincial assessment find?
Documents
- Stellenbosch Municipality Mayoral Committee agenda 25 March 2026, item 7.3.2: Review and rescission of several in-principle approvals to lease municipal owned properties (pp. 198-207 excerpt)
- MEC Anton Bredell on Stellenbosch Municipality alleged irregularities in managing lease agreements and disposal of municipal properties
- Province launches investigation into Stellenbosch Municipality property leasing
- Stellenbosch FC gets Van der Stel complex, despite strong opposition
- Information Statement: Management of Van Der Stel Sport Facility (INFORMATION STATEMENT IN RELATION TO MANAGE VAN DER STEL SPORTS FACILITY_17012025.pdf)
- Tender B/SM 111/24: Re-development and Lease of Transvalia Properties (tender document with adverts and drawings)
- 34th Council Meeting 2025-08-25, item 10.3.4: Disposal of Transvalia Complex through a 30-year lease to Middedorp Properties (and Agenda/Minutes 34th Council 2025-08-25)
- Information Statement in relation to lease: Transvalia complex (INFORMATION STATEMENT IN RELATION TO LEASE.Transvalia.pdf)
- Stellenbosse munisipale transaksies dán bekyk, sê LUR-woordvoerder