Is it a monument to the "Stellenbosch mafia" or just common sense?
Either way, a hullabaloo over a new head office for Capitec Bank outside Stellenbosch has added to the business gloom prompted by the downfall of another Stellenbosch business stalwart, Steinhoff.
Capitec, partly owned by the Mouton family via their stake in the PSG group, plans to build a six-storey head office in the Technopark business hub. The bank bought a sliver of municipal land and negotiated a deal with the Stellenbosch council to help pay for an infrastructure upgrade.But last week opposition parties tried to block council approval of the upgrade plan on grounds that it favoured the rich at the expense of the poor. They said the money should be spent on much-needed improvements in nearby townships.
The upgrade plan was approved in principle, prompting a backlash from EFF councillor Derrick Hendrickse. "What they have done here is advance the interest of white business at the cost of not providing services to black township areas," he said.
"The sale of the land was not done correctly in the first place. Now they are flouting the rules of municipal finance management to upgrade the area where the head office will be built."
At the time of the land sale, the council did not reveal the need for infrastructure upgrades costing about R20-million, he said, adding that the head office project suggested that the DA-led Stellenbosch council was pandering to a "Stellenbosch mafia" led by powerful business interests.
But PSG CEO Piet Mouton said this week that the head office plan followed all legal processes with the council. "Capitec's directors/board supported the decision to build a new head office in Technopark on vacant land the bank already owns.
"Currently Capitec occupies and rents 11 buildings, all owned by different owners. In line with Capitec's focus of keeping costs as low as possible in order to pass these savings on to its clients, the building of the new head office on the already owned land is in line with its business strategy," Mouton said.
Capitec confirmed plans for a head office and training centre.
Marketing and communications chief Francois Viviers said he was unaware of any political objection and confirmed that Capitec would help fund the infrastructure upgrade under a formal agreement with the council.He insisted the head office project was completely standard and procedural, prompted by the bank's impressive growth.
"It's not a fancy, flashy, expensive structure - it is an economically and ergonomically designed structure. We've literally just started with all the approval processes - it is really very early days in the process," Viviers said.
A senior business executive from Stellenbosch, who wished to remain anonymous, scoffed at the idea of a Stellenbosch mafia: "We always just laugh about that. We never got any invite to join some or other mafia. People all know each other, but here and there the guys don't even sit around the same table due to corporate jealousy. Everybody just gets on with their own thing."
Stellenbosch municipal manager Geraldine Mettler denied anything sinister or unethical about the land sale or the infrastructure upgrade. She said the council had only given in-principle approval to negotiate an upgrade deal with Capitec and final approval was still pending.
"In order to cater for all Technopark traffic, the entrance road has to be enlarged, not just for the anticipated Capitec project but for other and existing developments as well," she said.
"Council did not take any resolutions to approve a budget for the upgrade of the entrance of Technopark."..