DA requests Public Protector investigates R54 mil EThekwini lease deal
2 May 2017
The DA has written to the Public Protector, Adv Busisiwe Mkhwebane, calling on her to investigate a highly suspicious lease transaction between the EThekwini Municipality and Delta Properties (agents acting on behalf of the Embassy Building).
Earlier this month the City entered into a three-year lease agreement with Delta Properties to lease space at the Embassy Building in excess of R54 million, at almost double the advertised rental rate per square metre.
The Embassy Building usually rents for R69/sqm yet EThekwini has inexplicably bound itself for three years at R109/sqm.
This costly new rental space is intended to accommodate staff who have vacated City-owned offices at 75 Langalibalele Dube Street, for reasons which the DA does not believe justify a three-year-long relocation at all. It appears that the vacating of 75 Langalibalele Dube Street is a smokescreen to make someone at the Embassy Building very rich off an unnecessary three-year inflated lease.