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Cash-strapped Pretoria council bids for Johannesburg's lucrative neighbourhood
A battle is looming between two of the country's most powerful cities over a lucrative neighbourhood that contributes millions to city coffers.
The cash-strapped City of Tshwane, under embattled mayor Gwen Ramokgopa, took a resolution last week to lobby for the inclusion of wealthy Midrand under its jurisdiction in an attempt to boost its income.
Council documents say the city's "political representatives [were thereby] mandated to formally raise the possibility of the inclusion of the Midrand area in the proposed new City of Tshwane Metropolitan Municipality with the Gauteng MEC for local government and housing [Kgaogelo Lekgoro]".
However, the "Midrand area" also includes the wealthy northern Johannesburg suburbs of Kyalami Estate and Buccleuch.
The Johannesburg Metro is expected to oppose Tshwane's bid, which is seen by many as an attempt by Ramokgopa to boost revenue.
Last year it was reported that Tshwane owed Eskom R496-million and Rand Water R64-million and had exhausted its R500-million overdraft - a situation city officials blamed on residents not paying their rates and services bills.
Top ANC officials told The Times last night that Ramokgopa's resolution should first be discussed in the party's provincial structures before being placed on a council agenda.
Gauteng ANC spokesman Dumisa Ntuli said the party was not aware of Tshwane's bid for Midrand.
"We are not saying that the resolution is wrong, but this is a matter that should be discussed by ANC structures first," he said.
"It is still early for us to pronounce that we have not been consulted, and everybody is preoccupied by the provincial conference that is taking place this weekend. We will contact the Tshwane region after the conference to get more information."
However, a Tshwane ANC regional executive council member, who spoke on condition of anonymity, said the idea was mooted by them. He said the city has been saddled with the impoverished Metsweding District Municipality, east of Pretoria, which is expected to drain finances and it needed something to make up the shortfall.
Subesh Pillay, the mayoral committee member for city planning and economic development in Tshwane, said their decision to "incorporate" Midrand was for "economic sustainability in the long run".
When asked if his committee expected opposition from Johannesburg, Pillay said it was "too early to speculate". He said the Tshwane leadership "expected the process to be concluded by 2016".
However, many Midrand residents are having none of it.
Leverne Young, chairwoman of Midrand's Vorna Valley Residents Association, was shocked, saying: "I don't think it will be in the interests of our residents because Tshwane is already struggling with rates collection. We are already struggling with our escalating rates while our roads are not being fixed.
"Should this go through, who knows where our money will go."
Redmond Taggart, chairman of the area's President Park Ratepayers' Association, said: "It is common knowledge that Tshwane is bankrupt ... maybe it is to cash in from our property rates and taxes."
Midrand, home to headquarters of large corporations including Vodacom, is located between Johannesburg and Pretoria and is a favourite of property investors.
Several multibillion-rand developments are now under construction in the area, including the Waterfall City Development which will include 20000 luxury apartments, a luxury golf estate, a private 18-hole golf course, 150000m² shopping centre, a hotel and a service yard for the Gautrain. It is believed to have cost developers R10-billion.
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Haha, I'm sure Midrand residents will be happy to be part of Pretoria