Public Protector Finds No Impropriety: Sale Of
Property To Ms Mbeki
11 November 2003
The Public Protector has released a report on an investigation
of allegations of impropriety in connection with the sale by the
Department of Public Works to Ms Z Mbeki, of a property in
Summerstrand, Port Elizabeth. This complaint was lodged by a
Member of Parliament.
The investigation revealed that Ms Mbeki's late father-in-law,
a former Deputy President of the Senate, had leased the property
from the State for some time. He applied to purchase this property
from the Department, at open market value. After a proper
valuation had been conducted, his application was approved, but as
he died before a deed of alienation could be signed, an
enforceable contract of sale never existed.
Subsequent to Mr Mbeki's demise, Ms Mbeki applied to purchase
the property from the Department with the purpose of securing a
home for the surviving spouse, Ms E Mbeki. The application was
approved, subject to the condition that a personal servitude of
usufruct be registered in favour of Ms E Mbeki, against the title
deed of the property. The deed of alienation was signed in
November 2001 and the property was registered in her name seven
months later.
Media reports in September 2002 suggested that Ms Mbeki had
attempted to sell the property at twice the price she paid for it,
shortly after it was registered in her name. However, according to
the Department, Ms Mbeki indicated, prior to media enquiries, that
her mother-in-law was waiving her right in terms of the usufruct
as she no longer wished to utilize the residence.
When Ms Mbeki became the owner of the property, she acquired
all the rights and privileges that accrue to any owner of an
immovable property, subject to any conditions or limitations
registered against the title deed. Her alleged decision to sell
the property, at whatever price, was therefore a right that she
was entitled to. Any unjustified investigation of the reasons for
and details of her decision to sell it on the open market would
constitute an unlawful infringement of her constitutional right to
privacy. No justification for an enquiry into this matter could be
found. What the Public Protector had to do and could consider was
whether the sale of the property to her was irregular or improper.
In October 2002, Ms Mbeki confirmed that she had instructed her
attorneys to arrange for a reversal of the sale of the property,
at the same price, on the basis of the waiver by her mother in law
of her rights in terms of the usufruct. The property was sold back
to the Department on 11 November 2002.
The Public Protector made the following key findings:
- The decision of the Minister to sell the property to the
late Mr Mbeki was not unlawful or improper;
- The decision of the Minister to sell the property to Ms
Mbeki was also in accordance with the powers conferred upon her
by law and was properly executed and motivated;
- Ms Mbeki's efforts to purchase the property were clearly
motivated by the wish of the late Mr Mbeki to secure a home for
his wife and family;
- There was nothing improper in Ms Mbeki's selling of the
property at a price different to what she had paid for it; and
- As the sale of the property to Ms Mbeki was reversed on the
same financial terms, the State suffered no prejudice.
Enquiries: Nicolette Teichmann
Tel: (012) 322 1190
Cell: 082 333 5624
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