A property developer is trying to get the North West health department to pay R30 million in rental arrears for a building it leased, but had not occupied, the Sunday Independent reports.
Peolwane Properties director Reginald Kukama built the building to the department's specifications, as part of a R600 million tender. The department however had failed to pay the monthly rental of R3.9 million since the contract took effect in November.
The annual rent is R42 million, and the lease is for nine years and 11 months, bringing the total value of the contract to R660 million.
Although the department argues the lease is invalid, it apparently had not taken steps to nullify it.
The provincial treasury did not wish to comment on the matter to the Sunday Independent, as the case was continuing in the Mahikeng High Court.
Provincial health spokesman Tebogo Lekgethwane reportedly said the department had not moved in due to a dispute with Peolwane, and that the government was negotiating to buy the building.