Tony Ehrenreich, the ANC leader in Cape Town, has asked Public Protector Thuli Madonsela to investigate long-term leases on state-owned property that were signed during the apartheid era.
Ehrenreich has alleged corruption in connection with 50-year leases on plots owned by Cape Town city council in Gordon's Bay. The leases were signed in 1986 by the former Gordon's Bay municipality and a property developer.
The 76 plots, in Fleur Park, are advertised as overlooking "the brilliant blue waters of False Bay with the magnificent Hottentots Holland mountain range".
Lease transfers, which must be approved by the council, were objected to by the ANC last week.
Ehrenreich said yesterday that the leaseholders, who paid R1200 a month for the land, rented the properties to foreigners for up to R10000 a month.
"There is an estate agency managing these leases for them, they are not even living there, some of them are living in Gauteng. It is organised corruption," he said.
But Ian Neilson, deputy mayor and a member of the mayoral finance committee, dismissed Ehrenreich's claims.
"I don't know who the current owners are. We have the names on the agenda but they mean nothing to me," he said.
"There are many instances of people who managed to get ownership of properties in many ways . and they are free to transfer those properties."