Newsletter

Released - 29 November 2024

Dear Member

This Newsflash is all about MONEY, so it is vital that you read on!

After 20 years of little obvious activity and a number of legal and other setbacks we are now getting very close to our day in Court to defend our properties. We have had three pre-trial conferences and a fourth and last is set for 23 January 2025.

The Court hearing and process

 We are now heading into the final stages of the land claim as our expected court date is mid- 2025. The 23rd of January 2025 is expected to be the final pre-trial meeting, and the court date is expected to be set from this meeting. Our attorney is required to present a finite list of LCAG members at this pre-trial meeting. Only those properties which are recorded on the list as LCAG members will thereafter be represented by our legal team. This will be the last chance to be on the list as represented by LCAG. The balance of the properties will receive notification by the State of the impending court case and will have the opportunity to either represent themselves in court or they will be assumed to be agreeing that the land claim is valid and that they are not disputing this. Their property will also in terms of the Act be available for restitution purposes.

The implications for non LCAG members are severe as:

  • • Should the LCAG be successful in defending the land claim, this victory will be restricted to LCAG member properties only. Non-LCAG members will still have a land claim registered against their property. These properties will not be able to sell or raise bonds against the land until the claim status is removed.

Financial Implications of Membership

Sometime after the Land Claim Action Group (LCAG) was established, in a spirit of ubuntu, the community passed a Resolution that fully-paid subscription fee members would “carry” financially those families or members who had made a material effort to pay their subscriptions but were not, at the time of lodgement of court documents, fully paid-up members and such partially paid members would be included as a member of the LGAC.

Sadly, the power of the collective has been lukewarm over the past 19 years. Total subscription costs per property over this period amount to R14,100, which equates to an average R700 per annum (equivalent to about half a tank of petrol per annum). Out of 282 subdivisions owned by 254 members only 65 are fully paid members.
68 members owe between R1 and R3k
31 members owe between R3k and R5k.
32 members owe between R5k and R10k
58 members owe more than R10k
Errant members can be divided into 4 broad groups:

  • Families that are destitute, that is completely unable to pay their subscriptions (a few years ago 17 families were recorded as being destitute, but may not be so now)
  • Families who are struggling financially but who have made steady progress towards being a fully paid member
  • “Free riders” which are families who have had the ability to be a fully paid member but have declined to do so. Several of these declared in the past that they would pay-up when they could see progress being made towards a Court hearing. NOW IS THE TIME TO PUT YOUR HANDS IN YOUR POCKETS.
  • Members who have no interest in remaining a member of the LCAG.

FINANCIAL POSITION OF THE LCAG

We have been advised that the Court hearing could last 10 to 14 days and total costs are expected to reach 3.2 million Rand.

The financial position of the LCAG is that we have approximately R1.2 million in cash holdings, which is expected to swell to approximately R1.8 million by the court date (interest and 2024 subscription fees from current paid up members). We therefore will have a cash shortfall of about R1.4 million. There are however a further R1.3 million in members subscriptions arrears. This is an intolerable situation; these non-payers are imposing an average burden of R4,500 on each of those who have fulfilled their obligations. Were these debts to be paid-up we would be close to our target.

We do have 1 mandamus cost order, and three other cost orders which should be paid some 6/9 months after the court case (this is not dependent on us winning the case) but we will have to await the court assessing our legal costs for which such mandamus monies are to be paid; a rough estimate could result in this award being as much as R2 million. However, at present these have no monetary value and we cannot use them as collateral against a loan. Further, they will be paid many months after the due dates of invoices we will incur for court costs.

This creates a major cash flow problem for LCAG members. It is important to note that LCAG members will all be held jointly and severally liable should we be unable to meet our financial obligations. It is therefore critical that the LCAG has sufficient monies to pay all costs by the court date. Our legal costs and expenses are expected to be as much as R3.2 million. Should we win our case, there is a good probability that this will be awarded with costs, and so these legal fees could also be recovered but this does not solve our ability to pay the Court costs, which will be invoiced far sooner than payment of a cost award.

THE PROBLEM REMAINS – HOW ARE WE GOING TO FINANCE OUR DEFENCE?

SPECIAL GENERAL MEETING ON 12 JANUARY 2025

Under the circumstances, the Committee will be calling a Special General Meeting on 12 January 2025 (further details to be announced in due course), which will focus on shoring up sufficient funds by the court date to offset projected costs.

Further, the Committee will be recommending that members review their earlier resolution of “carrying” non fully paid-up members as LCAG members, as we simply cannot afford to “carry” R1.3 million of debt from errant members who have chosen not to remain up-to-date with their subscriptions. Dependent on subscription fees received from errant members, a special levy from members may be required (commercially attractive interest rates will be offered to these special levies).

Over the past year, numerous account and contact/address detail notices have been despatched to LCAG members. There are however some 37 members for which we have no contact details. It is therefore essential that LCAG members:

  • review their notices to ensure that they are fully paid members and that their contact/property details as provided are accurate.
  • we appeal to LCAG members to please engage with their neighbours concerning their status as a LCAG member and the accuracy of the information provided. A list of LCAG member properties is available upon request from Pedro Carvalho (email address and contact number to be provided).

Those who are unable to be a fully paid member by 15 January 2025 and are prepared to enter a formal payment plan should please contact Pedro Carvalho urgently (email accounts@broederstroomlandclaim.co.za contact number 0823370203).

We are in the final hurdle of our 19-year-old battle and are not prepared to trip up now. We will protect our property rights, and our victory will ensure that the material investment we have made into our properties will be an attractive investment choice.

 

Pedro Carvalho
Treasurer,
26778 Land Claim Action Group

29 November 2024

                                                                                                         
Our bank account details
26778 Land Claim Committee; Standard Bank; Van Der Walt Street PTA.
Clearing Code 010145; Cheque account 410776882.
Please email the deposit slip to accounts@broederstroomlandclaim.co.za.  Please use your membership number as a reference.

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The opinions expressed in this newsletter are my own and do not necessarily represent those of the Committee or of the appointed legal team.

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