Rustenburg withdraws from R650m mall project over alleged exploitation | IOL News

Rustenburg - The Rustenburg municipality in North West has pulled out of a R650 million shopping mall project in Geelhout Park, citing "exploitation" of local communities by the developer.

Municipal spokesman David Magae said the municipality abandoned the project after it become clear that there was "no intention" of empowering nearby communities, particularly small, medium and micro enterprises (SMME's).

"The Rustenburg local municipality cannot be excited that from this mega project, communities are set to benefit around the tune of R5 million. The municipality after careful consideration will not be an active participant and therefore dissociates itself from the mall project development, as the recent developments seek to undermine and exploit the affected communities," he said.

Magae said that the municipality initially pledged support for the project on the basis that it would contribute to Rustenburg's standing position on local economic development. 

"From our engagements with the developers, we have always put across the importance of beneficiation, as it relates to local economic development, which may translate into work offered in the form of contracts, for any services required in the construction of the mall.