A total of 29 businesses at Mdantsane's Highway Mall face eviction due to rental arrears which have accumulated over the years to more than R29m.
The 32-year-old building is owned by the Eastern Cape Development Corporation (ECDC), which is crying foul over the current crop of business tenants who account for R5.5m of that debt and are demanding a write-off.
The mall comprises 9,206m² of commercial space housing 83 tenants.
After a tenant eviction last week due to significant rental debt, a standoff ensued on Friday between the development corporation and the Mdantsane Mall Tenants Committee.
Izanazo Pty Ltd owner Siseko Siwisa, whose company sells upholstery cleaning supplies, said his business had been shut down because it was R35,000 in arrears.
He has disputed the bill.
He said he’d had several disputes with the ECDC over a high electricity bill from 2022.
“I came to the ECDC numerous times to set up meetings to prove the alleged debt is not mine,” he said.
“The feedback I got from the ECDC was that there was nothing it can do.”
Siwisa was evicted by the sheriff of the court on Wednesday.
This led to other business owners and employees holding a protest outside the ECDC headquarters in Quigney on Friday.
More than 30 protesters called for a write-off of the debt and a 50% rental discount for the projected 24-month period during which the building was undergoing major refurbishments.
The tenants committee chair Ronald Bashman said they were unhappy with Siwisa’s eviction which was allegedly in contravention of their agreement with the ECDC.
“We had an agreement that there would be no evictions during the period of construction,” he said.
“We are not happy with the manner things are being done.
“The ECDC is not being helpful and we are trying by all means to maintain good relations.”
Bashman said that during their meeting on Friday it had been agreed that written feedback on their demands would be given.
He also called for the removal of foreign-owned businesses in the mall.
“This mall belongs to us,” he said.
“It is the economy of Mdantsane and was meant to serve as that from its inception.
“We are not happy with the number of foreign businesses the ECDC has allowed in.
“Part of our demands was that they should put Mdantsane businesses in the mall.”
He also said rentals were “too extreme” for a government-owned site.
“We operate in appalling conditions. We do not even have toilets inside.”
ECDC spokesperson Yandisa Sobuza said the corporation’s role was to ensure responsible revenue collection.
“These are commercial premises and the corporation cannot offer rent-free occupation to private businesses.”
Sobuza said the ECDC depended solely on rental revenue to fund repairs, maintenance and refurbishment at its properties.
“This [arrears] situation severely undermines our ability to invest in the mall,” she said.
“While some tenants remain compliant, long-standing defaults, some exceeding 10 years, have eroded our revenue base, delaying essential upgrades and affecting other ECDC development programmes.”
She said despite ongoing engagements in the past year, some tenants had continued to default.
“The ECDC has demonstrated goodwill by extending considerable concessions over more than a decade, including repayment arrangements and uninterrupted occupation despite persistent default.
“However, rental obligations cannot be suspended indefinitely without negatively affecting the infrastructure which tenants themselves rely on.”
In January 2024, the mall was set to shut down for at least 18 months for refurbishment to avoid permanent closure of the building after it was ruled too dangerous to continue operating in.
This came after the development corporation had been given a notice of prohibition by the department of employment and labour after inspectors found that the building’s roof, electrical wiring and plumbing made it unsafe for tenants and the public.
The initial refurbishments were expected to be done by September 2025.
Another meeting between the committee and ECDC management is expected on Tuesday.
Daily Dispatch
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