eThekwini councillors have voted in favour of a R28m demolition of the damaged China Emporium building despite questions about the city’s ability to recover the cost from the building's owners.
The building was damaged by fire in January 2022, which prompted the city’s structural engineers to recommend that it be torn down.
After the building's owners, Zoloscore Investments, failed to act, the municipality approached the court for an order to compel the company to begin demolition. The court ordered the company, in September 2022, to begin demolition within six months, or let the municipality demolish it and recover the costs from Zoloscore.
Yet a year after the expiration of the court’s deadline, the building still stands.
After being passed by the city’s executive committee in August, the item was adopted after a lively council debate at the Durban International Convention Centre on Thursday.
While all parties agreed that the compromised structure was an eyesore, and dangerous, some were not convinced that the city would be able to recover the cost.
The DA’s Yogis Govender said the area should be made presentable without putting a “tremendous financial burden” on citizens.
She expressed concern that the city’s reports had neither shown how it planned to recover the money nor if the company was able to repay the city after the demolition. She said the report had not shown what steps the municipality had taken to hold the company in contempt of court.
“There’s no shred of evidence of what has been done to actually recover the money. We are spending taxpayers' money on private entities without assurance that they will be able to recover this.”
Jonathan Annipen said the IFP would not support the item because the court order did not speak about spending R28m of “ratepayers' money to demolish a property that belongs to a private entity”.
“On the contrary, the summary [of the court order] and the report suggest that the owners be held responsible. We cannot allow delinquent business owners who make no contribution to the city to exploit our ratepayers and citizens.”
Nhlanhla Motseke of the EFF said the company already owed millions to the city.
He said the EFF supported the city funding the demolition but urged it to find ways to ensure the company repaid the money, including seizing its assets.
“Last year the company owed close to R12m in municipal fees for services provided and that money has not been recovered.”
He asked the municipality to seek court permission and to seize the assets of the company.
African People First (APF) president Muzi Hlengwa said it would be setting a wrong precedent and be irresponsible to spend more money on a company that had failed to pay the R12m it already owed the city.
“We are cleaning up after a Chinese company that we failed to vet properly to see if it could withstand any situation that may arise when they came to invest here. How are we going to recover R28m from a company that failed to pay R12m while it was still here?”
Hlengwa said that money should be used to build proper houses for flood victims.
Mayor Mxolisi Kaunda, however, said the building was a disaster in waiting and it was necessary that the city demolish it rather then wait for a company that has not said when it will demolish it.
He said the city had engaged the company to commence demolition, but it indicated that it did not have the money to start now, which is what led them to court in the first place.
“What if they take three or five years to demolish the building? This situation is disastrous, and we need to prevent loss of lives — that is why this council is being proactive.”
Kaunda said the building detracted from the city's tourism offering.
“As the ANC we have a responsibility to govern the city and protect the interests of its citizens. The money we’re going to spend will not go to waste, it’s money that we’re going to make sure we recover.”
The item was adopted when 113 councillors voted in favour, while 21 voted against, and 52, mainly from the DA and IFP, abstained.
TimesLIVE
City to spend R28m tearing down a fire-damaged Durban eyesore
A year after the expiration of the court’s deadline, the building still stands
Image: SANDILE NDLOVU
eThekwini councillors have voted in favour of a R28m demolition of the damaged China Emporium building despite questions about the city’s ability to recover the cost from the building's owners.
The building was damaged by fire in January 2022, which prompted the city’s structural engineers to recommend that it be torn down.
After the building's owners, Zoloscore Investments, failed to act, the municipality approached the court for an order to compel the company to begin demolition. The court ordered the company, in September 2022, to begin demolition within six months, or let the municipality demolish it and recover the costs from Zoloscore.
Yet a year after the expiration of the court’s deadline, the building still stands.
After being passed by the city’s executive committee in August, the item was adopted after a lively council debate at the Durban International Convention Centre on Thursday.
While all parties agreed that the compromised structure was an eyesore, and dangerous, some were not convinced that the city would be able to recover the cost.
The DA’s Yogis Govender said the area should be made presentable without putting a “tremendous financial burden” on citizens.
She expressed concern that the city’s reports had neither shown how it planned to recover the money nor if the company was able to repay the city after the demolition. She said the report had not shown what steps the municipality had taken to hold the company in contempt of court.
“There’s no shred of evidence of what has been done to actually recover the money. We are spending taxpayers' money on private entities without assurance that they will be able to recover this.”
Jonathan Annipen said the IFP would not support the item because the court order did not speak about spending R28m of “ratepayers' money to demolish a property that belongs to a private entity”.
“On the contrary, the summary [of the court order] and the report suggest that the owners be held responsible. We cannot allow delinquent business owners who make no contribution to the city to exploit our ratepayers and citizens.”
Nhlanhla Motseke of the EFF said the company already owed millions to the city.
He said the EFF supported the city funding the demolition but urged it to find ways to ensure the company repaid the money, including seizing its assets.
“Last year the company owed close to R12m in municipal fees for services provided and that money has not been recovered.”
He asked the municipality to seek court permission and to seize the assets of the company.
African People First (APF) president Muzi Hlengwa said it would be setting a wrong precedent and be irresponsible to spend more money on a company that had failed to pay the R12m it already owed the city.
“We are cleaning up after a Chinese company that we failed to vet properly to see if it could withstand any situation that may arise when they came to invest here. How are we going to recover R28m from a company that failed to pay R12m while it was still here?”
Hlengwa said that money should be used to build proper houses for flood victims.
Mayor Mxolisi Kaunda, however, said the building was a disaster in waiting and it was necessary that the city demolish it rather then wait for a company that has not said when it will demolish it.
He said the city had engaged the company to commence demolition, but it indicated that it did not have the money to start now, which is what led them to court in the first place.
“What if they take three or five years to demolish the building? This situation is disastrous, and we need to prevent loss of lives — that is why this council is being proactive.”
Kaunda said the building detracted from the city's tourism offering.
“As the ANC we have a responsibility to govern the city and protect the interests of its citizens. The money we’re going to spend will not go to waste, it’s money that we’re going to make sure we recover.”
The item was adopted when 113 councillors voted in favour, while 21 voted against, and 52, mainly from the DA and IFP, abstained.
TimesLIVE
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