The department of home affairs’ plan to relocate to Hemingways Mall has been challenged in the high court in Pretoria by the landlord of its East London branch.
Blue Beacon Investments has lodged a dispute with the state over its lease.
The company filed a mediation notice on Friday, a Rule 41A form, seeking the court’s approval for an independent mediator in its dispute with the department of public works, the state’s property custodian.
Rule 41A requires parties to consider mediation before or during litigation and to file notices indicating whether they agree to it.
In its application, Blue Beacon said the dispute was commercial and administrative, involving the lease of immovable property and the procurement of state accommodation.
It argued the matter raised complex questions about the roles of custodian and user departments under the Government Immovable Asset Management Act.
“A mediated solution could potentially resolve the impasse regarding the occupation of the premises and the validity of the lease extension without the need for protracted and costly urgent litigation,” the company said.
It proposed that mediation costs be shared equally.
Home affairs, public works, their ministers and Hemingways Mall owners Hangar 18 Investments were cited as respondents.
We always have a problem with the landlords … We need toilets, we need parking for staff but they ignore all that, all they want is the rent
— Home affairs deputy director-general for operations Thulani Mavuso,
Blue Beacon’s lawyer, Sean Sim, confirmed the dispute related to home affairs’ move to Hemingways.
“It’s an urgent application set down for next week.
“The papers set out the basis as to why we contest or claim that [the move] can’t be happening or certainly isn’t legal.”
The Dispatch understands that Hangar 18 has filed a notice of intention to oppose the matter.
Home affairs has defended the relocation, arguing the move would improve efficiency at a lower rental cost, despite warnings from politicians that a mall location could restrict access for low-income residents.
The department said its lease had ended and was now month-to-month.
The deputy director-general for operations, Thulani Mavuso, said the dispute was sub judice but confirmed they had engaged the company.
“We always have a problem with the landlords … We need toilets, we need parking for staff but they ignore all that, all they want is the rent …
“Our new office space accommodates everyone, even kids. We now have security and parking we will not pay for.”
He said that in Rustenburg, after moving to a mall, rental costs dropped from R400,000 to R170,000 a month.
He would not disclose the Hemingways rental.
Home affairs intends to occupy more than 3,500m² in the mall’s renovated east wing.
But on Monday the long-awaited move failed to happen.
Customers arrived to find services inactive, and mobile units at the mall were not functioning due to a broken generator.
The same problems persisted on Tuesday.
An official said some systems were still online at Fleet Street. Mavuso said the move was expected to be complete by Monday.
In Nelson Mandela Bay, the department moved to Baywest Mall in November. Both malls are owned by Hangar 18.
Daily Dispatch
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