Tshwane Cracks Down on Old Lease Agreements: New Subcommittee Targets Unattended Properties and Corruption

Pretoria – The City of Tshwane has set up a special subcommittee to deal with properties under old lease agreements that have been ignored for years. This move comes after finding out that some properties have not paid for key services like water and electricity, or have paid very little because their leases are outdated and do not match today’s rates. Officials say this has led to big money losses for the city, and they point fingers at corruption as the main cause.

The problem has come to light through cases where owners use old deals to avoid paying what they should. For example, one building owner in Watloo claims a 1997 agreement means he does not have to pay municipal fees, but the city says the property now owes R3.8 million. This is part of a wider issue where old leases let people or businesses pay next to nothing, hurting the city’s ability to provide services to everyone.

The announcement fits into ongoing efforts by Tshwane to fight fraud and illegal deals in land sales and leases. Back in July 2025, the city warned about cracking down on these problems, showing they have been working on it for months. Now, with the subcommittee, they aim to fix these old agreements once and for all.

Reasons Behind the Subcommittee’s Formation

The subcommittee was created because many old leases have not been updated to reflect current market prices and service costs. This has allowed some properties to skip payments or pay very low amounts, leading to unfairness and lost income for the city. The group will look into these cases, check the agreements, and make changes where needed.

City leaders say these old deals often come from times when rules were not strict, and some might have been set up through dishonest ways. This has left properties unattended, meaning no one has checked or updated them for years. The result is a mess where the city loses money that could go towards fixing roads, providing water, or other community needs.

In one shocking find, officials discovered areas like Menlyn Maine, a modern development, still using flat rates from when it started, with no updates despite rising costs everywhere else. This shows how widespread the issue is, affecting both old and newer spots.

Key Examples Highlighting the Problem

One clear case is a restaurant that was paying just R1 a month under an old lease. The City’s MMC for Environment and Agriculture Management, Obakeng Ramabodu, shared her surprise: “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.”

The city acted fast by cancelling the lease, evicting the people there, and setting a new rent based on current values. This shows what the subcommittee might do in other cases – review, cancel if needed, and update to fair prices.

Another example is the Watloo building, where the owner leans on a 1997 agreement to claim no need to pay for services. But the city disagrees, saying the deal is outdated and the debt has piled up to R3.8 million. Similar stories have popped up, like a business with a 1996 lease claiming the same exemption, adding to the city’s headache.

Then there is Menlyn Maine, where rates have stayed the same since it was built. Ramabodu explained: “We have evicted the people who were there. 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.”

These cases show how old leases can lead to big unfair advantages, with some paying almost nothing while others pay full rates.

Corruption at the Heart of the Issue

Ramabodu has openly blamed corruption for letting these problems go on. She believes dishonest deals in the past allowed these low or no-payment setups, and no one fixed them because of inside issues. This ties into bigger fights against corruption in Tshwane, where the city has been probing irregular spending and fraud.

For instance, earlier in 2025, Tshwane worked on clearing a backlog of R13 billion in irregular spending, showing their push to clean up finances. The subcommittee is part of this, aiming to stop money leaks from bad leases and make sure everyone pays their fair share.

The city has already taken steps in some cases, like evicting tenants and updating rents. But with many properties still under old terms, the subcommittee will dig deeper to find and fix them all.

🔴Central News Weekly Edition | Issue 115 🔴Download the Latest Print and E-Edition | Headline: Ngwathe Municipality Refuses to Back Down, Heads to Supreme Court of Appeal

Download Here:

Direct PDF File Here:

https://centralnews.co.za/wp-content/uploads/2025/07/Central-News-Issue-114-1.pdf

Read all our publications on magzter:

https://www.magzter.com/ZA/Central-News-Pty-Ltd/Central-News/Newspaper/All-Issues

Central News also offers Sponsored Editorial Content,  Podcasts , Radio / Social Media Simulcast, Video Production , Live Streaming Services, Press Conferences, and Paid Interviews (Video/Audio) etc.

We guarantee exceptional exposure, reach, and engagement, with an excellent return on investment.

Advertisement:

To place your advert on our platforms (Print Newspaper or Digital Platforms) : Please email : sales@centralnews.co.za

For Business Related:
business@centralnews.co.za

Newsroom:
Send your Stories / Media Statements To: newsroom@centralnews.co.za

General Info:
info@centralnews.co.za