The leaders of the Public Assets Community-Based Tenants and Owners’ Association appeared in court on Tuesday for their alleged involvement in a criminal enterprise that saw them pocketing R40-million in five years by illegally renting out government ...
Three men who headed an organisation that allegedly made R40-million in five years by renting out government buildings in Mthatha made a brief appearance in the Mthatha Commercial Crimes Court on Tuesday.
Earlier on Tuesday morning, before the three men appeared in court, their cellphones were confiscated and handed to investigators. Providing background to the matter, Mgolodela said that in December 2017, Pactoa began evicting tenants who were paying rent to the ECDC. They then took over 11 properties, including the Windsor Hotel, and rented these to tenants who paid them and not the ECDC.
A statement issued by the ECDC at the time read:“The conclusion of this agreement is a breath of fresh air for the Mthatha region, which is in dire need of development, particularly within the property development sphere. Tenants at the Windsor Hotel in Mthatha leave with their belongings after the Hawks raid the premises. .“While the normal legal processes remain in place to evict all those occupying the ECDC’s properties illegally, the board and executive team embarked on a strategy to engage Pactoa with the view of finding a solution and addressing the impasse. These negotiations were held in good faith and without prejudice to both parties,” Ayanda Wakaba, the CEO of the ECDC, said at the time.
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