Tshwane Launches Crackdown On Old Lease Agreements Owing Millions In Fees

The City of Tshwane has announced the formation of a dedicated subcommittee to address properties with outdated lease agreements that have been neglected over the years.

The move comes after authorities identified buildings where municipal service fees were either underpaid or not paid at all due to outdated lease terms.

A prominent case involves a building in Watloo, where the owner insists that a 1997 lease exempts them from municipal charges. Tshwane, however, maintains that the property now owes R3.8 million in outstanding service fees.

Municipal Officials Point to Corruption in Lease Management

Obakeng Ramabodu, Tshwane’s MMC for Environment and Agriculture Management, attributed some of these issues to past corruption within the municipality.

“We had a restaurant that we were shocked, I was shocked that they were paying one rand a month to that area and that lease … it was an old lease. We have since cancelled it, and we have changed the rent to today’s market,” Ramabodu said.

The city has since evicted tenants in problematic properties and adjusted leases to reflect current market rates.

YOU MAY ALSO LIKE: IMF Chief Kristalina Georgieva Says Global Economy Holding Firm But Clouds Still Loom

Ramabodu also highlighted that some developments continue to pay flat rates that have not been updated since the properties were established.

“There are areas that have not changed. Areas like Menlyn Maine, which is a new development. It hasn’t changed its rates since it was established. And the markets change and the rate changes, and there’s no change, it’s still the flat rate,” he explained.

The subcommittee is expected to review all old lease agreements across Tshwane, ensuring property owners comply with current service charges and municipal revenue is fully recovered.

---

For More, Follow SurgeZirc SA On  Facebook, X,  Instagram and Bluesky