Cape Argus News

George Building collapse site auction sparks outrage among victims' families

Genevieve Serra|Published

The George Building collapse was as a result of multiple failures such as systematic failures, non-compliance with regulations and mismanagement.

Image: Ayanda Ndamane/Independent Newspapers

The George Building collapse site, where 34 workers were killed and 28 injured in May 2024 has been placed on auction. This follows the George Municipality confirming earlier this month that it had to withdraw its claim for recovery costs of R10 million due to the owners, Neo Victoria Development's state of liquidation.

On Tuesday, Chantelle Kyd, GOOD George Councillor called for the municipality to intervene in the sale citing that the victims and families were owed the site for a memorial." The online auction of the tragic George building collapse site, taking place today and tomorrow, is utterly unacceptable.

The GOOD Party demands that the George Municipality immediately intervene so that this land be dedicated to a permanent memorial for the victims and their grieving families.

"Their call for a memorial park has gone unanswered, even as the auction proceeds, disregarding the strong dissatisfaction expressed by community members during the recent Portfolio Committee visit to Thembalethu.

"The Municipality's conduct in the aftermath of the collapse is indefensible."

Kyd added there was no accountability: "We accuse the George administration of deliberately delaying the vital safety review, despite confirming months ago, on July 31, in response to GOOD's written questions, that the process was already underway. Why the silence? Why are affected communities still waiting? And why does the Municipality only appear to 'take action' when public outrage forces its hand? This is not poor communication; it is a profound failure of governance. Worse still, the Municipality actively suppressed the very oversight that could have exposed the weaknesses leading to this tragedy."

In response to questions about the sale and auction, George Municipality's Communications Manager reverted back to their November 5 statement, adding the following: "Please direct any further queries to the liquidators and/or development company."

Cape Argus has previously sent various queries to the owners for comment on the matter and they have not responded.

In their earlier correspondence, the municipality clarified that the "property concerned is privately owned, and as such, any disposal, sale, or use of the property remains at the sole discretion of the owner or the appointed liquidator. The Municipality is aware that the company has been formally liquidated, and accordingly, the initial claim for recovery costs was withdrawn."

It said: "The Municipality did not proceed with registering its claim, as the financial institution holding the bond is the preferred creditor. The value of the bondholder's claim exceeds the value of the property. Legal action against a liquidated company, using taxpayers' money, is deemed to be irresponsible, fruitless, and wasteful because there is no guarantee that any money owed to the Municipality, as a concurrent creditor, will be recovered.

In September, the Portfolio Committee on Public Works and Infrastructure (DPWI) had not received the full forensic report, citing its "sensitive nature." Committee Chairperson Carol Phiri stressed the urgency of a joint stakeholder meeting and a public participation process in George, highlighting the lack of accountability and suggesting reluctance to pursue the contractor due to legalities. 

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