The Liesbeek Leisure Properties Trust (LLPT), the trustee representative of the developer of Amazon’s planned African headquarters, says it has incurred significant financial losses as a result of the long delays in the legal matter surrounding the River Club redevelopment.
After over a year of delays to the R4.6 billion construction project based in Observatory, the parties involved in the legal dispute have lashed out, saying the court process, which has seen several postponements, has been unnecessarily delayed.
The delay is the result of the ongoing legal tussle between LLP and the Liesbeek Action Campaign, which includes Goringhaicona Khoi Khoin Indigenous Traditional Council and environmentalists.
The parties have taken the developer to court due to concerns that the construction on the floodplain between the Black and Liesbeek rivers would lead to the land losing its historical significance and result in increased risk of flooding and environmental exploitation.
“LLPT continues to incur substantial wasted costs, and remains exposed to the uncertainty related to the project as a result of the legal proceedings,” says LLPT in a statement.
“The delays have caused financial loss and uncertainty regarding the overall development, including putting at risk the many benefits it will bring to the City of Cape Town. This includes 6 000 direct and 19 000 indirect jobs and the Cape Peninsula Khoi memorialising their cultural heritage associated with the broader area, including the establishment of a heritage, cultural and media centre.”
According to LLPT, the construction project also aims to deliver developer-subsidised affordable housing, safe and accessible green parks and gardens, significant road and other infrastructure upgrades in the area, and the rehabilitation of the polluted and degraded waterways adjacent to the property.
Judge president Patricia Goliath issued an interim interdict on 18 March, prohibiting the developers from continuing construction at the River Club development. On 5 May, she rejected the developers’ leave to appeal.
Despite this, the developers resumed construction on the site on 27 June – a move believed by the Liesbeek Action Campaign to be in violation of the interdict.
The Liesbeek Action Campaign then lodged papers on 8 July to hold the developers in contempt of court.
The LLPT then headed for the Supreme Court of Appeal and was granted leave to appeal Goliath’s judgement handed down to halt construction.
The matter should have been heard on 12 July, but was delayed to 27 July; however, on that day it was again delayed.
Following a meeting on 11 August when judge president John Hlophe met with all the legal teams involved, a new date was set for 22 and 23 August to hear the contempt of court application, and Hlophe undertook to allocate a judge for the matter.
However, this has once again been further delayed because the judge president had not allocated a judge.
“Justice delayed is justice denied,” states the Liesbeek Action Campaign in a media statement.
“Courts continue to delay urgent hearings and the developer’s allies delay proceedings, as a sacred site is destroyed by profiteers. We ask: In this R4.5 billion project, is there any limit to the amount of money that can be spent on ‘lawfare’ to undermine the Khoi and San heritage?”
In an affidavit filed on 18 July, LLPT noted Amazon had warned further postponement of the construction project could result in termination of the development and lease agreements signed with LLP.
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