Property Developer Accused of Seizing RDP Housing Land

Soweto businesses and residents find themselves embroiled in a legal battle against the City of Joburg, Joburg Property Company (JPC), and a white-owned entity over a disputed land sale in Power Park, Soweto.

The controversy revolves around the sale of an 8,955 square meter piece of land to Imcapath, a company owned by Louis Barnard. Allegations abound that the land was sold under questionable circumstances for a mere R109,000, significantly below its market value as reported by Sunday World.

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Initial intentions for the land were directed towards creating low-cost housing for Soweto residents. However, as stated in court documents, the litigants contend that the land was ultimately sold for “commercial gain and profit.”

The sale is further marred by allegations of corruption, with indications that Barnard, prior to acquiring the land, was functioning as an agent of the city. He reportedly set his own purchase price for the land in a peculiar twist.

A document dated September 8, 2020, bearing Barnard’s signature, authorised him, via his company LAB Investment Holdings, to act as the city’s agent with a special power of attorney to facilitate the land’s sale to Imcapath.

The plot, previously associated with nine distinct ERF numbers, was later reassigned as ERF number 415, with ownership transferred to Barnard’s Imcapath.

A collective of business owners and the Power Park Residents Association, whose student accommodations serve the University of Johannesburg Soweto campus, have raised concerns over the legitimacy of the sale to Barnard at an unusually low price. They have initiated legal proceedings against the city, JPC, Imcapath, and LAB in response.

An earlier arrangement, inked in October 2003 between the city and Katavi Properties, outlined the development of low-income housing on the land, once referred to as Baralink Precinct 4. However, Katavi’s failure to secure funding paved the way for Barnard’s acquisition.

The applicants, represented by Jaylopart NPC and businessman Bakang Khumalo, contend that Power Park residents have spent two decades attempting to engage with the city on the matter, only to be met with evasive responses.

Imcapath’s apparent disregard for housing rights is of significant concern to the applicants, as they allege the company is pursuing development that will not alleviate homelessness.

The litigants further accuse Barnard of unlawfully transferring ownership to his own company and accuse the city and JPC of failing to consult the community. They assert the respondents’ actions have been shrouded in secrecy.

The applicants dispute the respondents’ claims of public engagement and community support for student accommodation. They firmly assert that the community seeks RDP houses and housing for low-income earners, underscoring that the respondents threaten their housing rights.

Additionally, the litigants highlight that Imcapath’s ongoing construction activities, unhindered by their objections, demonstrate harm to the community’s housing rights. They assert that the respondents lack the legal right to erect student accommodation due to noncompliance with land acquisition protocols.

In response to queries from Sunday World, JPC CEO Helen Botes acknowledged the sale to Barnard’s company. Botes clarified that LAB Investment was acting as an agent of the City of Joburg, and a professional valuer determined the agreement’s pricing. Botes denied claims of a commercial motive for the sale, asserting its intent was housing development.

Lawyer Mpho Magome, representing the respondents, abstained from commenting due to the sub-judice nature of the matter.

Notably, Imcapath and its legal representatives did not respond to written queries submitted last week.

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Photo: Facebook / @Sunday World