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Work on a controversial housing development halted

7th July 2003

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The Cape High Court has granted a temporary interdict halting work on a controversial housing development at Gouritsmond, SABC television news reported.

Meanwhile former Western Cape Environment and Planning MEC David Malatsi and ex-Premier Peter Marais were scheduled to appear in court today on corruption charges in connection with a property development at Plettenberg Bay.

The Gouritsmond Ratepayers Association and residents have long opposed a development on the river's banks approved by Malatsi.

The court order halted further construction pending a full High Court review of Malatsi's original decision.

Malatsi and Marais were alleged to have received R400 000 in kickbacks from the developers of the Roodefontein project in Plettenberg Bay.

According to the State, Malatsi, while MEC and Marais, while premier, secured donations of R100 000 and R300 000 respectively from Count Ricardo Agusta, an Italian businessman, for the New National Party.

The day after the money was deposited Malatsi approved the project despite concerns by his own officials.

Both men, who have pleaded not guilty, were out on R10 000 bail. – Sapa.
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