CLIFFORD’S GOVT PROPERTY ACQUISITION: HOUSE SHOULD’VE BEEN ADVERTISED

MBABANE – Minister Appolo Maphalala is empowered by law to sell government houses, but the city council has to initiate the sale.

In fact, the minister of Housing and Urban Development can sanction the sale after the local authority has advertised the availability of the plots and also called for applications. Regarding the government house’s sale to Clifford Mamba, procedure dictates that the Municipal Council of Mbabane should have initiated the process. After the processes have been duly completed, the Municipal Council of Mbabane is supposed to forward the Deed of Sale to Maphalala, the Minister of Housing and Urban Development.

While the minister is empowered by Section 3 of the Crown Lands Disposal Act of 1911 to dispose of the property, there are regulations in place that interpret and implement the principal legislation (Crown Lands Disposal Act). Section 5 (1) of the Crown Lands Disposal Regulations, 2003, reads: “Local Authority advertises the availability of plots stating their location and calls for application stating the target group and time frame for submission of applications.” According to Section 5 (2), all applications are to be addressed to the relevant authority.
Since the property sold to the former PS is located in the urban area of the capital city, the Municipal Council of Mbabane should have screened Mamba’s application form.  

Mandated

After screening the form, the LA (Municipal Council of Mbabane) is then mandated in law to transmit its recommendations for allocation to the Crown Lands Disposal Committee (CLDC). The CLDC is composed of the principal secretary in the Ministry of Housing and Urban Development who serves as the chairperson, director of Housing and Human Settlement (head of secretariat), senior physical planning officer, member from Land Control Board (Land Management Board) and land officer who shall be an administrative secretary. Other members are the chief executive officer/clerk where applicable, estate clerk and mayor/chairman of the Board.Notably, the CLDC’s function is to screen the council’s recommended applications and thereafter conducts random draw at its (council) offices.

After the draw, acceptance of offer and payment of a five per cent deposit, the local authority (Municipal Council of Mbabane) is supposed to forward the Deed of Sale (in triplicate) to the Ministry of Housing and Urban Development for the minister’s signature. This is in terms of Section 9 of the Crown Lands Disposal Regulations.  The time frame for the agreement of sale should be included in the Deed of Sale. According to the law, two copies if the Deed of Sale are to be returned to the local authority - one for the LA (city/town council or Board) and one for the purchaser.

Stipulated

On completion of payment of purchase price, it is stipulated in law that the dues paid certificate and survey certificate are transmitted to the Ministry of Housing and Urban Development for the preparation of the Draft Crown Grant. It is provided in the law that the ministry shall pay rates up until the Deed of Sale has been signed. Thereafter, the purchaser shall be responsible for rate payment. The law makes it clear in Section 13 that payment of the property shall not exceed five years from the signing of the Deed of Sale by the minister.

Failure of payment leads to repossession and sale of the property, but the buyer is refunded the amount paid less the deposit. It must be said that the grant is lodged with the Deeds Office for property registration upon signing of the draft Crown Grant. “Following the registration, the Crown Grant is issued and collected by the Ministry of Housing and Urban Development for examination to the Local Authority who (sic) will then transmit the grant to the purchaser,” reads Section 15 of the Regulations.

The final document transferring the land to the purchaser, Mamba in this case, should read: “In the name and on behalf of His Majesty the King of Eswatini, whereas plot 245 situate on (street name), location, Eswatini, was sold under Crown Lands Disposal Act No.13 of 1911 by the Government of Eswatini for the sum of E2 240 000. Now, therefore, I, the Minister of Housing and Urban Development in the Government of Eswatini, hereby, grant, cede and transfer unto the said Clifford Mamba.”

The Crown Grant, which is issued after the Deed of Sale has been signed by the minister, is made on conditions that the lot, among other things, is subject to city/township regulations, stipulations and other laws as already exist or may hereafter become of force. Investigations by this newspaper has unearthed that the house sold to Mamba is still registered under government. However, government says the retired principal secretary (PS) in the Ministry of Housing and Urban Development, will pay property rates. The former PS was offered a discount of 30 per cent in terms of Government General Order A777.

Government General Order A777 (1) provides; ‘that an officer, whether serving on permanent and pensionable or non-pensionable terms of service, shall be entitled to 30 per cent discount of the purchase price of the plot.’ The house is still registered as government property with the Deeds Office under the Ministry of Natural Resources and Energy and Municipal Council of Mbabane. This is plot 245. In an interview, Dr Simon Zwane, the Principal Secretary (PS) in the Ministry of Housing and Urban Development and current CLDC, said the house would only be registered in the name of the purchaser (Mamba) upon payment of the full amount due. Having signed the agreement of sale, Dr Zwane said Mamba (referring to him as the purchaser) was expected to pay the rates. He said the CLDC gives purchasers five years to complete payment, but they become responsible for paying rates upon signing of the Deed of Sale.

Sufficient

The PS was asked whether the agreement of sale is the same as the Deed of Sale or is the agreement of sale the sufficient instrument that can force Mamba as a purchaser to pay the rates.
There were fears that if the ex-PS has not paid, it meant the taxpayer will foot the bill. In response, Dr Zwane said the agreement of sale is the same as the Deed of Sale. He said it becomes the purchaser’s responsibility to pay the rates after he or she has signed the agreement of sale (Deed of Sale). Regarding the concern that the sale should have begun with the Municipal Council of Mbabane, the PS did not respond to the supplementary questionnaire. This newspaper wanted to know whether Mamba did send an application to the council for the acquisition of the house.  

Lucky Tsabedze, the Public Information Officer of the Municipal Council of Mbabane, said in a brief statement: “I kindly refer you to the Ministry of Housing and Urban Development on this matter.”  Last month, Maphalala, the Minister of Housing and Urban Development, explained that the sale of pool housing, like all Crown/government property, was governed by the Crown Lands Disposal Act, 1911. He said he was empowered by Section 3 of the Act to dispose of crown land through sale, lease and grant. In addition, he said, the piece of legislation was accompanied by the Crown Lands Disposal Regulations, 2023, which detailed how the sale, lease and grant would be carried out by the ministry.

He said the sale of the government house to Mamba would not be reversed. The minister maintained his stance during a breakfast meeting between editors and Prime Minister Russell Mmiso Dlamini at Mountain View International Hotel in Mbabane. Maphalala said the integrity of the sale of the government house met all requirements. As a result, he found that the offer was made to the buyer who then paid the commitment fee and other required fees.He summed it up by saying the sale was legitimate. Maphalala rebutted perceptions that Parliament ordered him to reverse the sale of the house. He had also told Parliament that Mamba bought the government house at a 30 per cent discount.  

Improvements

The valuation of the property was E3.2 million (land valued at E2 million and improvements at E1.2 million). The minister reported that the 30 per cent discount was offered to him when he was still a civil servant. Maphalala said the offer was made in terms of Government General Order A777. After effecting the discount, the total price of the property was fixed at E2 240 000. The minister also highlighted that as per the Crown Lands Disposal Regulations, the occupant was expected to pay a five per cent deposit (E112 000), before signing of the agreement (deed) of sale. When the matter was first discussed by Parliament, the minister said the sale of the house remained an allegation on the basis that he had not seen the deed of sale.

Meanwhile, Lobamba Lomdzala MP Marwick Khumalo said civil or public servants needed to be empowered to buy government houses. In an interview, the MP said government was failing to maintain its pool of houses. Khumalo said many of government houses were dilapidated and unfit for human occupation. As a result, the long-time serving MP said it was in order for government, if the law permitted, to sell the house to Mamba. He said selling government houses in an open auction would disadvantage the civil servants as businessmen with lots of money would buy all the flats. Khumalo said it was a good idea to give the occupant of the house first preference to purchase it. The MP said it was time that public servants or civil servants should be empowered so that they could own property.

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