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IOL News
3 days ago
- Business
- IOL News
Joburg landlord in legal battle over property renovated by tenant and later sold for R3 million
A Johannesburg man's ambitious plan to transform his rental property into his future home has resulted in a significant legal defeat. Image: Freepik A Johannesburg man's ambitious plan to transform his rental property into his future home has resulted in a significant legal defeat, as a court has denied his claims for reimbursement for renovations made while renting. The saga began in January 2010 when the tenant entered into a two-year lease with his landlord, setting an initial rent of R20,000 per month, along with utilities, and stipulating a minimum 10% escalation upon renewal. However, both parties opted to delete certain clauses from the lease contract, which later proved pivotal in the ensuing disputes. The landlord said this was done to remove any obligations he may have toward the leasing agent, Jawitz Properties. Meanwhile, the tenant claimed that they had reached an oral agreement that he would put in an offer to purchase the property as soon as his financial position allowed him to obtain a home loan. After the lease expired in 2012, the landlord shifted the rental agreement to a month-to-month basis, increasing the rent to R22,000. In August 2015, he relocated to Canada, and his mother, a qualified estate agent, managed the property, including the collection of rent and inspection of the property on his behalf. The rent remained constant until December 2017, when it was increased to R 28,000. During this time, the tenant was an erratic payer; he skipped monthly payments or sometimes paid for more than one month's rent at a time. In May 2018, the landlord's legal representatives informed the tenant of R36,000 owed in rent arrears and invited him to submit an offer to purchase the property, which was listed for sale at R3.6 million. The tenant proposed a cash offer of R3.3 million, which the landlord rejected. The property was ultimately sold in March 2022 for R3 million. Subsequently, the tenant was evicted in December 2021, reportedly owing approximately R1 million in unpaid rent. In an effort to recuperate some of the funds, the landlord sought relief in the Johannesburg High Court seeking at least R896,000 from the unpaid rent. Meanwhile, the tenant argued that there was a verbal agreement within the first two years of the lease and based on that, he made several substantial improvements to the property because he had plans to buy the property. Among the renovations was a R394,000 kitchen refurbishment and a R520,000 painting and waterproofing, which the tenant argued increased the property's market value significantly. He argued that because of the improvements, the market value of the property increased from R2.6 million to R3.5 million and that the property was ultimately sold for R3 million. The tenant claimed over R900,000 for contractual damages and, in the alternative, an unjustified enrichment claim of R400,000. Furthermore, he didn't deny that he did not pay rent between December 2017 until his eviction in December 2021. He only paid for two months in March and April 2018. He explained that he refused to pay the rent because the landlord unreasonably increased the rental by 21% from R22,000 to R28,000. On the other hand, the landlord didn't deny the renovations; however, he challenged the necessity of the improvements and the obligation to reimburse tenant the expenses incurred. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Acting Judge Sha'ista Kazee presided over the case and noted that from the evidence presented, no verbal agreement existed regarding purchase discussions. She highlighted that the tenant had been granted a formal opportunity to purchase the property, but his offer was not accepted. Additionally, under the terms laid out in the lease agreement, the landlord was well within his rights to increase the rent by a minimum of 10% every two years. The judge underscored that if only this escalation had been considered, the rent would have already exceeded R28,000 by December 2017. Regarding the renovations, the judge found that the lease agreement's Clause 12 expressly denies the tenant any entitlement to reimbursement for improvements made to the property. Stating that: "with or without the consent of the lessor, he shall in any event receive no compensation therefore and shall either at his own expense remove same immediately at the request of the lessor'. Meanwhile, it was also noted that no inspection was conducted when the tenant left the house and when he left, he removed some of the improvements he made to the property. This includes a geyser in the garage. He also took the solar geyser, his furniture and other movables. Ultimately, judge Kazee ruled in favour of the landlord's claim for R896,000 and ordered that the tenant pay the legal costs of the proceedings. IOL News Get your news on the go, click here to join the IOL News WhatsApp channel.
IOL News
7 days ago
- Business
- IOL News
ANC KZN leaders criticise councillors over municipal failures
KwaZulu Natal ANC task team convener Jeff Radebe speaking at the ANC KZN Alliance Local Government and Service Delivery Summit held in Coastlands Hotel on Durban's South Beach on Sunday. Image: Doctor Ngcobo / Independent Newspapers The ANC leadership in KwaZulu-Natal has read the riot act to councillors regarding the state of municipalities in the province, warning that elected officials must take their oversight responsibilities seriously. Going forward, they will be held accountable for governance failures in councils, the leadership warned. ANC convener Jeff Radebe called on councillors to be well-informed about council matters. He stated that active participation is vital for transparency, efficient service delivery, and curbing corruption and mismanagement at the local level. Radebe made these remarks while delivering his address at the Alliance Local Government and Service Delivery Summit this weekend. 'The ANC must take stock of the state of governance in our municipal councils. The 2026 municipal elections are upon us. We have so little time and so much work to do,' Radebe said. 'We gather at a time when our municipalities are at a crossroads. Progress is evident, yes, but so too are the challenges that will test our collective resolve. As leadership, we share the responsibility of turning this situation around,' he continued. He detailed some of the challenges, noting that capital expenditure stood at R4.8 billion (31.9%) lower than the 50% target. Conditional grants to municipalities totalled R8.2 billion, with only R3.6 billion (36.7%) spent. The critical Municipal Infrastructure Grant of R3.6 billion had only been spent by 39.7%, while the Water Services Infrastructure Grant of R1.1 billion had only been spent by 44.1%. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ 'These inordinate delays have robbed our people of essential services. This province is crying out for much-needed municipal infrastructure and water provision. These statistics are shocking. This is a sorry tale,' he continued. 'Urgent intervention is required in debt management, budget accuracy, and compliance with financial reporting requirements. Let us raise the critical oversight and monitoring responsibilities of Exco members and councils. Exco councillors are part of the political executive and are responsible for policy implementation and oversight of specific portfolios, similar to Ministers and MECs. 'Each Exco councillor oversees a specific department and is individually responsible for monitoring departmental performance and ensuring alignment with the Integrated Development Plan and Budget,' said Radebe. He emphasised that councillors are responsible for monitoring service delivery, ensuring that services are delivered efficiently and effectively in line with municipal policies. Mayors and councils must report regularly on departmental performance and intervene when targets are not met, he said. Councillors must take immediate action on remedial measures once they identify problems in service delivery or maladministration, Radebe stated emphasising that they represented the broader public and act as a bridge between communities and the municipality. 'Every ANC cadre who serves as a councillor must engage with residents to report service delivery issues. You must facilitate community meetings, report back, and channel community concerns into council processes through your ANC Caucus. You must ensure that these concerns are addressed by the municipality in which you serve,' he added.
IOL News
20-06-2025
- Business
- IOL News
SA bleeds R3. 6 billion a year to fuel smuggling and tampering, says SARS
South Africa is losing around R3.6 billion every year because of illegal fuel Image: File South Africa is losing around R3.6 billion every year because of illegal fuel smuggling and tampering, according to the South African Revenue Service (SARS). According to the Revenue Service criminals are importing fuel without paying the correct taxes and mixing diesel with cheaper products like paraffin. "Over the past decade, countries along the Maputo Corridor (South Africa, Swaziland, and Mozambique) have become primary targets of the illicit fuel trade, which is driven by organised criminal networks that smuggle and illegally adulterate fuel," SARS said. "SARS has established that some importers declare fuel amounting to 40 000 litres or less, whereas investigation reveals that up to 60 000 litres of fuel are actually imported. This is called under-declaration, and documents are falsified to perpetuate this fraudulent activity," SARS also reported a national trend involving fuel storage and distribution depots in the illegal mixing of diesel with paraffin, a practice contributing heavily to revenue losses. "SARS has also detected a national trend where many of the fuel-storage and distribution depots are involved in the adulteration of all fuel products, especially through illegal mixing of diesel with paraffin. Fuel adulteration costs the fiscus approximately R3.6 billion per year according to statistics by the International Trade Administration Commission" Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ Sars added that government agencies are working together more closely to detect, prevent, and combat fuel adulteration and enforce the Customs and Excise Act. "The intelligence-driven joint-enforcement interventions included search-and-seizure operations targeting certain fuel-storage facilities and depots as well as random sampling of tanker transport to test the fuel viscosity and composition. In some cases, adulterated diesel analysed by in these investigations had up to 68% paraffin content" In a recent operation, SARS and SAPS targeted 23 sites in Gauteng, Mpumalanga, and KwaZulu-Natal and seized over 950,000 litres of contaminated diesel, shut down six illegal fuel depots, and confiscated assets worth R367 million. 'The criminal syndicates engaged in these brazen acts have become emboldened to act callously with no restraint in pursuit of their rapacious and criminal gains," SARS Commissioner Edward Kieswetter said. 'These syndicates can only underestimate our resolve to eradicate this criminality at their peril. These acts threaten the very foundation of our society. Our message is clear: we will spare no efforts to crush them'. IOL Business Get your news on the go, click here to join the IOL News WhatsApp channel
IOL News
18-06-2025
- Business
- IOL News
Pension freeze for former NLC official amid serious fraud allegations
The pension fund of former National Lotteries Commission senior manager Sanele Dlamini was frozen. Image: File Former National Lotteries Commission (NLC) official, Sanele Dlamini, has been interdicted from cashing in on his pension, pending the outcome of the Special Investigating Unit's (SIU) investigation into allegations that he improperly authorised the payment of R3 million towards a project which never materialised. The SIU turned to the Special Tribunal to freeze Dlamini's retirement fund, which is due to be paid to him. Dlamini is a former senior manager of the grant operations of the NLC. The SIU is litigating on behalf of the commission to recover losses that it suffered as a result of irregular and unlawful practices. The SIU said it believes that Dlamini may be 'a man of straw', and if its investigations reveal any wrongdoing on his part, they will at least be able to recover the NLC money from his pension fund. The NLC had awarded the Motheo Sports Foundation a grant of R9 million for the construction of a sports complex. The first payment made was nearly R3.6 million. The SIU investigation revealed that this amount was not used for the funded project but was instead shared among several people and/or entities as an undue gratification. It was alleged that Dlamini authorised the payment of the money based on falsified progress reports, despite no work being done on the funded project. Investigations revealed that the land was used as a dumping site. A disciplinary inquiry subsequently found Dlamini guilty of gross negligence and misconduct, and he was dismissed. The SIU now seeks to preserve Dlamini's pension fund at Liberty Life Insurance, pending the outcome of a review application to recover the funds. Dlamini, in opposing the application, said it is clear that the sports foundation received the funds and not him. He was not part of any fraud or scheme to siphon off money from the NLC. He was not present when the project was approved. At that stage, he was the provincial manager for the KwaZulu-Natal office of the NLC. He asserted that he unfairly attracted blame for this entire saga for simply approving a payment of R3 million to the Motheo Foundation. He argued that the money must be recovered from the principal debtors, being the persons and entities who received the NLC money. Therefore, he should not be held liable. Dlamini said he based his approval of the progress report, the financial report, and visuals showing the site and work in progress. He stated that he was the victim of the fraud, as also the NLC.
The Citizen
18-06-2025
- Business
- The Citizen
How the illicit fuel trade is robbing SA of billions per year
Investigators have found some diesel tankers where the fuel had a paraffin content of 68%. The prevalence of illicit fuels in South Africa is a growing concern for the country's financial and consumer interests. Much like illicit alcohol and cigarettes, fuel products are smuggled, underreported and illegally manufactured or altered for criminal gain. The South African Revenue Service (Sars) reported that illicit fuels cost the fiscus roughly R3.6 billion per year, while police have identified 23 hotspots in three provinces. Illicit fuel trade Gauteng, Mpumalanga and KwaZulu-Natal are the hardest hit as syndicates operate in close proximity to Mozambique's capital. 'Over the past decade, countries along the Maputo corridor have become primary targets of the illicit fuel trade, which is driven by organised criminal networks that smuggle and illegally adulterate fuel,' stated Sars. Gathered intelligence led to search and seizure operations at fuel storage facilities and depots, where fuel viscosity and composition are tested in tankers. Sars state that common tactics involve importers declaring fuel by 20 to 30% or diluting fuels with harmful additives. 'Sars has also detected a national trend, where many of the fuel-storage and distribution depots are involved in the adulteration of all fuel products, especially through illegal mixing of diesel with paraffin.' 'In some cases, adulterated diesel – analysed in these investigations – had up to 68% paraffin content,' Sars said. Negative effects of paraffin In January 2024, the Department of Mineral Resources and Energy found 70 fuel stations that were selling diesel adulterated with paraffin. Toyota South Africa Motors explained at the time that paraffin drastically deteriorates engine lubrication, as well as the cleaning of moving parts and the conditioning of seals. 'These components will fail with the repeated use of paraffin. Furthermore, the flashpoint of paraffin is lower than diesel, which could lead to engine knock, which can cause catastrophic engine failure,' said TSAM President and CEO Andrew Kirby. In the past four months, authorities have discovered just over 950 000 litres of contaminated diesel and assets worth R367 million. Authorities opened 13 criminal cases and impounded 12 transportation trucks carrying an average of 15 000 litres of falsely declared fuel upon import. Additionally, two washrooms — one of them mobile — were shut down. These washrooms are used to add chemicals to the fuel mix, which help to disguise illegal additives. Attack on society The multi-departmental operations include Sars' trade investigators, police, and the National Joint Operational and Intelligence Structure. Sars Commissioner Edward Kieswetter thanked authorities and warned criminals not to underestimate South Africa's resolve in clamping down on illicit trade. 'The criminal syndicates engaged in these brazen acts have become emboldened to act callously, with no restraint, in pursuit of their rapacious and criminal gains. 'These acts threaten the very foundation of our society. Our message is clear: we will spare no efforts to crush them,' the Commissioner concluded. NOW READ: JRA allocated just 1% of amount needed to fix Johannesburg's roads
