Loading...
See More

Protector asked to probe CT-Naspers deal

Mar 14 2012 15:34 Sapa

Company Data

NASPERS LIMITED [JSE:NPN]

Last traded 0
Change 46,46
% Change 0
Cumulative volume 3792247
Market cap 552.28bn

Last Updated: 18-09-2014 at 04:29. Prices are delayed by 15 minutes. Source: McGregor BFA

Related Articles

Commission reverses print firms' merger

Tencent reports 13.6% rise in Q3 net profit

Naspers follows Tencent lower

Naspers buys ad website

Naspers, Heunis sell MXit stake

Naspers ekes out first-half profit

 
Cape Town - Public Protector Thuli Madonsela is to investigate a proposed property deal between Cape Town City and media holding company Naspers [JSE:NPN].

ANC chief whip Mathole Motshekga said on Wednesday he had asked her to "investigate the suspicious City of Cape Town-Naspers multimillion rands property deal".

The Democratic Alliance-run City of Cape Town was intending to buy "a piece of parking space" from Naspers, which independent property analysts had valued at no more than R50m for a "whopping" R106m, according to Motshekga.

The value looked heavily inflated and raised questions regarding "who is set to benefit out of the deal", the chief whip said in a statement.

"We are pleased that the public protector has already made an assessment of our complaint and has concluded that it is within her jurisdiction," he said.

She had also confirmed that she would conduct a preliminary investigation into the allegations, and an investigator had already been assigned to work on the complaint, Motshekga said.

In a letter to Madonsela, Motshekga said that according to press reports, the city was set to buy the parking space from Naspers for the expansion of the Cape Town International Convention Centre, in which the city was a shareholder.

"The deal between the City of Cape Town and Naspers, as it stands, looks extremely suspicious and dubious," he wrote.

Property analysts believed the R3 000 per m2 was way above what an average vacant piece of land would fetch in the city.

The deal amount had even surprised Mansoor Mahommed, former City of Cape Town executive director who now worked at a property development company, who regarded it as a "high" price.

"This transaction, dubbed 'an extremely sweet deal for Naspers' due to the extraordinarily and unjustifiably high price involved, raises serious questions regarding the nature of the relationship between the DA and Naspers," he said.

"We are concerned that a company that, through its media publications prides itself on being the public watchdog and acting in the interest of the public, is expecting the public to fork out R56m more on a piece of parking space."

Motshekga called for the deal to be suspended until the investigation was concluded.

* Fin24 is a Naspers publication.
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
33 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

Small Business

New forms of digital technology are changing the very ways in which entrepreneurs run their businesses.
 
 

Device lets disabled people talk through their nose

A device that converts nose breaths into speech will open new doors for people with Parkinson’s or motor neuron disease.

 
 

For chic geeks...

It’s THIS easy for someone to steal your ATM pin!
This is why you should install iOS 8
17 photo illusions that look so real
Check out the speed of this robo-cheetah!

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...