August 5, 2003
By Thomas Thale
THE Metropolitan Trading Company (MTC) on Tuesday locked out traders who have been defaulting on rent payments at the Metro Mall in Newtown.
The MTC is a council owned company responsible for establishing and managing markets in the city.
Built last year at a cost of R140-million, the Metro Mall is the city's flagship market and best-equipped transport holding facility, catering for taxis, buses and informal traders.
Nhlanhla Ndovela, operations manager of the MTC, confirmed that 23 traders were locked out of their stalls for defaulting on rent payment. "These are people who have not paid rent for six months or more. Collectively, they owe R100 060 in unpaid rent."
Steven Khoza, spokesman for the South African Community Government Union which represents some of the hawkers, and a defaulter himself, accused the MTC of charging the traders exorbitant rental. "We can't afford to pay the R600 monthly rental charged by the MTC, and therefore we decided to pay R60 per month," Khoza said, adding that all the traders at the market have not been paying rent.
But Ndovela dismissed these allegations, pointing out that the rental at the market ranged from R75 for open stalls to R900 for larger shops. "Only people who occupy kitchens with roller shutter doors pay R600 rent per month," Ndovela said.
According to Ndovela, 40% of the traders at the market are up to date with their rent payments. "Some are definitely making an effort to pay, although they still owe some money. We've locked out those who have simply not bothered to make payment. They give all kinds of excuses, often citing domestic problems." Ndovela said the MTC has consistently warned the defaulters to pay up or be locked out.
But Ndovela indicated that the MTC would not evict the defaulters from the market as yet. "We will propose that those who can't afford the rent move to cheaper, open stalls. The rental there is just R75 per month."
Ndovela said some of the defaulters have indicated a willingness to pay. "We have asked them to pay 25% of their arrears and make arrangements with us to settle the rest."
Edmund Elias, spokesman for the Informal Business Forum, called on the MTC to table problems at the Informal Traders Forum before taking drastic measures. "That forum is where problems need to be debated and dealt with," Elias said.
