Opposition parties slam DA-led George municipality over building collapse claim withdrawal

THE DA’s suspected proximity to property developers is believed to be among the reasons its George municipality withdrew a nearly R10 million recovery claim against Neo Victoria Developments citing liquidation, despite the death of 34 workers in last year’s tragic building collapse.

The four-storey building collapsed on May 6, 2024, burying workers beneath the rubble. The municipality this week announced it would no longer proceed with its claim against the company. 

“The property concerned is privately-owned, and as such, any disposal, sale, or use of the property remains at the sole discretion of the owner or the appointed liquidator. The Municipality is aware that the company has been formally liquidated, and accordingly, the initial claim for recovery costs was withdrawn. The Municipality did not proceed with registering its claim, as the financial institution holding the bond is the preferred creditor.

"The value of the bondholder’s claim exceeds the value of the property. Legal action against a liquidated company, using taxpayers’ money, is deemed to be irresponsible, fruitless, and wasteful because there is no guarantee that any money owed to the Municipality, as a concurrent creditor, will be recovered,” George municipality said. 

With the property currently up for auction, the municipality said outstanding municipal claims would not prevent the auction or transfer of the property from proceeding.

Lawyers for the developer, Neo Victoria Developments and its director Carel Swanepoel did not respond to requests for comment on the matter. 

The DA referred questions back to the municipality. 

The ANC in the province said they were not surprised that the municipality remained “insensitive and downright irresponsible to the families who lost loved ones who will now not get justice nor reparations for losing their loved ones for profits”. 

“The DA has a parasitic relationship with private property developers and is in cahoots with them, they form part of their funders. The collapse of that building is as a result of a collusion between the DA Municipality and the property developer. Had proper processes been followed and necessary checks and balances put in place including adoption of plans stringently in line with Municipal laws, we would not be here. To claim that the company is liquidated is a cheap way out as the DA attempts to shield its funders.”

GOOD councillor in George, Chantelle Kyd said: “Legal costs cannot outweigh the obligation to seek justice and accountability, particularly when lives are lost and millions in public funds are at stake. The municipality could have initiated discussions with the liquidator to expropriate the property in the public interest, both to recover losses and to preserve the site as a dignified memorial for the victims. Instead, the land is heading to auction with no recovery for the municipality and no accountability,” said Kyd. 

Cape Times