Shabangu in R6bn property row

Businessman Roux Shabangu is embroiled in yet another property controversy - a R6-billion golf course development which has been stalled.

Details of Shabangu's involvement in the LagoonBay Lifestyle Estate surfaced this week in documents before the High Court in Cape Town, submitted by objectors trying to halt the 600- to 800ha development in the town of George.

Mathews Phosa, treasurer-general of the ANC, is a director of LagoonBay.

The documents include correspondence from 2006 between Shabangu and the Department of Agriculture - which controversially backed the development in 2007 against the advice of its own experts.

LagoonBay is billed as the biggest development of its kind, featuring 1500 homes, a shopping centre, five-star hotel, conference centre, health spa and two Retief Goosen signature 18-hole golf courses.

Property developer Werner Roux has already invested R300-million and promised to inject capital into the economically depressed southern Cape. Specialist studies predicted a regional benefit of 17000 jobs over 10 years, said Roux.

But the project was stalled in April by DA stalwart Anton Bredell, the Western Cape Minister for Local Government, Environmental Affairs and Development Planning. Roux is challenging his decision in court.

This week the Sunday Times established that:

• Shabangu attended a meeting to discuss the project in 2004 or 2005;
• In April 2006 a national Department of Agriculture official recommended against the rezoning and subdivision needed for LagoonBay to go ahead;
•  At about the same time the department received a request from LagoonBay for a meeting with the then minister of agriculture, Thoko Didiza;
•  The department sent a letter to "R Shabangu" - using Shabangu's address - on June 30 2006, referring to correspondence between him and the department, and a "subsequent meeting" that was held. The letter ends: "I would like to assure you that this matter will receive favourable attention, and once the department has concluded its findings the decision will be communicated to you within the set time frames";
• On July 21 2006 the department reversed its previous stance and recommended in favour of the LagoonBay rezoning and subdivision application;
• Shabangu's company website features LagoonBay as one of its developments.

But Roux denied existing links between Shabangu and his company. He confirmed he had been part of initial discussions over LagoonBay's black economic empowerment, but had not become formally involved.

Roux said he was shocked to see correspondence between Shabangu and the department because Shabangu had never been formally involved with LagoonBay. He said either the department had mixed up similar-sounding names, or Shabangu must have had private dealings with the department.

"When we put the black consortium together we had a meeting ... and Roux Shabangu was in that meeting. He was invited by the black consortium to get involved - but he never got involved," said Roux.

He said he would ask his lawyers to investigate Shabangu's website posting.

Shabangu this week insisted he was "no longer involved" in LagoonBay - despite it featuring in his company website's residential property portfolio. He refused to comment further.

Phosa yesterday denied that Shabangu was involved with LagoonBay. He said the Department of Agriculture may have mistakenly sent letters to Shabangu instead of Werner Roux - due to their similar names. "I never had any business dealings with Roux Shabangu re LagoonBay or any other matter," said Phosa, who was appointed a director in 2006.

Phosa was surprised that Shabangu was advertising LagoonBay online: "If it is true it is very strange," he said.

Opponents of the golf resort, including Bredell, say golf estates are unsustainable.

In a written explanation where he differed with his ANC predecessor, Pierre Uys - who granted environmental authorisation for the project to proceed - Bredell said: "(LagoonBay) is an example of urban sprawl which will bring about the loss of agricultural land, water resources and biodiversity..."

Two nearby golf courses were either bankrupt or about to go bankrupt, said Bredell.

Opposition to the project has allegedly sparked violent retribution against objectors, who have laid criminal charges with the police.

Shabangu, 37, made national headlines last year after landing a R500-million contract to lease an office block to the SAPS. He owns several properties.

The Department of Agriculture did not respond to an inquiry from the Sunday Times.