The Department of Human Settlements will investigate the alleged sale of the 71.8-hectare Annandale farm in Milnerton to private developers by the City of Cape Town Council. This land was acquired nine years ago using national grant funds intended to alleviate overcrowding in the neighboring Dunoon area.
Information about this transaction came to light after GOOD party secretary and mayoral candidate Brett Herron disclosed details obtained through a request under the Promotion of Access to Information Act (PAIA). According to these records, the City purchased the plot for R162.6 million, utilizing the Urban Development Grant (USDG).
The City announced a tender for the sale and development of the land, setting a deadline for developer submissions until October 21. Projects must provide affordable housing opportunities through public-private partnerships on 72 hectares along the N7 highway. The City plans to create a mixed-tenure area combining affordable and market-rate housing.
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This occurs despite former Cape Town Mayor Patricia de Lille, now Minister of Tourism, stating to the Dunoon community in 2018 that the Annandale farm land would be used for building affordable housing.
Deputy Minister of Human Settlements Thandi Makhambekhala stated that her department only learned of the land sale after Herron made the City's intentions public. Makhambekhala emphasized that the issue concerns land that was supposed to be used to provide housing for Dunoon residents, which is the most overcrowded area in the City of Cape Town Council.
These statements were made by her during a service delivery meeting held in Dunoon amid reports of the Annandale farm sale. Makhambekhala expressed shock that land acquired by the Western Cape Government's Housing Development Department is being sold. She said the Minister of Human Settlements has sanctioned an investigation because they do not want to spread rumours but aim to ascertain the true circumstances, as they believe public funds are meant for public use.
Makhambekhala also mentioned that the department faces operational backlogs, and access to land is one of the challenges. She noted that if the department acquires land, and it is suddenly sold to the private sector for unintended purposes, the department has to intervene, making it crucial for the Ministry and Minister to conduct an investigation that will reveal many facts.
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She also pointed to the possibility of demanding the return of funds used to purchase the farm. Makhambekhala added that the money must be returned so that houses can be built for Dunoon residents, according to the original plan. She expressed regret that the land was sold to the private sector for other purposes.
Ward Councillor 104 Bululu Maende expressed outrage that the City is taking land promised for low-cost housing in Dunoon. She noted that these events occurred amidst an election campaign. Maende questioned whether they are using this platform to showcase themselves to voters and stressed that it is wrong to sell land bought with taxpayer money to a private developer, recalling promises made 20 years ago.
Herron confirmed that the Annandale farm land was paid for with Urban Development Grant funds specifically intended to alleviate overcrowding in Dunoon. He stated that the GOOD party will send an official letter to the National Department of Human Settlements to determine the legality of the City using USDG funds to buy and sell property for profit.
However, Ward Committee member for Human Settlements Carl Popaim told the Cape Argus that the asset sale was not intended for the City to make a profit, but rather to facilitate the release of property in exchange for maximizing affordable housing opportunities. Popaim clarified that the evaluation criteria for incoming applications directly incentivize developers who offer the highest quota of affordable units.