Real Estate Investor Magazine South Africa September 2014 | Page 10

PROPERTY ALERTS

The
Good

The
Bad

They
Ugl

Ghost”Buildings South African
Gautrain
consumer rights
boosts Gauteng cost taxpayers
under threat
property prices R60 million

T

he Gautrain rapid rail link,
with 11 stations and 80 kms
of railway network, transports
more than 50,000 passengers on a
typical workday. According to Dr
Andrew Golding, chief executive of
the Pam Golding Property group, this
has had an important impact on areas
surrounding the Gautrain stations.
“With increasing traffic and e-tolls,
many people want to live close to
their places of work or within easy
reach of the Gautrain. We have seen
the demand for residential property
intensify in some areas around the
Gautrain stations, with a corresponding
increase in the development of new
or revamped accommodation in all
of these areas. The impact on the
residential property market generally
tends to radiate out from the stations
with the greatest impact felt toward the
centre. It is evident that the Gautrain
is providing an important stimulus
for the local economy and is having a
highly positive impact on a number of
residential property markets within the
greater Johannesburg area. If current
trends are anything to go by, this
process is only likely to continue into
the future.”

10

August 2014 SA SA Real Estate Investor
September 2014Real Estate Investor

A

Treasury audit of more than
2,000 properties leased by
government revealed that
government is wasting a staggering
R60 million of taxpayers’ money every
year on 108 vacant buildings, and
another R12 million on 12 buildings
occupied by non-government tenants.
According to Dhaya Govender, the
Public Works’ Interim Head of the
Property Division, the buildings were
located in Pretoria and Johannesburg
and most were occupied by strangers,
costing taxpayers at least R900,000
a month per building. Futhermore,
the government faced a huge risk as
no lease agreements could be found
for another 578 leased buildings. The
matter has been referred to the Special
Investigating Unit, while systems have
been introduced to stop payments
related to vacant properties. From the
90 cases investigated by the SIU, 75
have been finalised, but only seven
officials have been fired and civil action
being instituted against employees
and contractors in just eight matters.
Another 23 officials have resigned.

G

overnment plans to regulate
choices regarding health and
lifestyle threaten the rights of
South African consumers, says Leon
Louw, Executive Director of the Free
Market Foundation. He is concerned
about the Minister of Health’s intention
to further regulate and discriminate
against consumers of sugar, salt, fat,
fast food, cold drinks, alcohol, tobacco,
sweets, complementary and alternative
medicines, and potentially, consumers
of other products and services. Anticonsumer controls are planned in
other areas, such as severe restrictions
and prohibitions on the consumer
rights regarding health and medical
insurance, and deletion of favourable
credit ratings. These measures erode
personal freedom and disempower
consumers. Existing regulations and
far-reaching draconian regulations
under consideration amount to a fullscale attack on consumers’ rights. Louw
suggests th ]H