This article has been updated since publication.

GEORGE NEWS - The families of the 62 victims of the 75 Victoria Street building collapse have appealed to Standard Bank, which financed the development, to consider donating the proceeds from the recent auction of the property to the victims.

According to a media statement issued by these families on Tuesday 3 March, many of the survivors and relatives of the deceased were left destitute and are still waiting for the Department of Labour and Employment to process workmen's compensation claims.

The property was sold in an online auction in November following the developer, Neo Victoria Developments, going into liquidation. Standard Bank is the preferred creditor to receive the proceeds from the sale.

The families say in their statement that the proceeds are just a drop in the bucket of what the developer owes them. "… if this amount was shared among the 62 families, it would help to pay school fees, doctors' bills and put food on the table. Such an initiative will also speak volumes in terms of the bank's sense of justice and mercy."

In a similar vein of thought, Good's Cllr Chantelle Kyd submitted written questions to the Speaker of the George Council, Sean Snyman, regarding the transaction, referring to possible alienation of the disaster property for public use. Previously, members of the public have suggested that a memorial garden be established on the property in remembrance of the victims.

According to responses from the office of the municipal manager, Godfrey Louw, to Kyd's questions, a valid sale agreement is in place, but it would "technically" be possible to negotiate with the new owner to buy the property from him. However, since New Victoria Developments is under liquidation, the liquidator and the bondholder would have to be involved in the negotiations. Negotiation would also only be possible if the municipality is "willing and able" to pay at least an amount equal to the sale price, as Standard Bank can be expected to protect its commercial interests.

Kyd's questions and the responses were noted in a report on the council agenda dated 27 February. According to the report, the transfer of the property has not been registered yet.

In one of the responses, the municipality states that expropriation is not considered as viable because the property is not required for the rendering of basic municipal services and no budgetary provision has been made for it.

The building site on the third day after implosion.

The municipality has spent R9.296m on recovery costs and the rehabilitation of the site, but did not follow through with a claim against the developer since the bank is the preferential creditor in the liquidation. Legal advice obtained by the municipality indicated that additional legal expenses to recover these costs would be fruitless expenditure.

Dewald Breytenbach, the liquidator, confirmed to George Herald that the highest bid at the auction was R2.86m. "During the confirmation period, higher offers were received, after which the original purchaser matched the highest bid of R3.75m. The bid was then awarded to him."

The nearly completed five-storey building collapsed on Monday 6 May, killing 34 workers and injuring 28.

In their statement, the families expressed their "deep appreciation to the people of George who have been supporting us with their compassion, prayers and donations".

Standard Bank's response

Standard Bank on 4 March responded as follows to an enquiry from the George Herald:

"Standard Bank extends its deepest sympathies to the families who lost loved ones and to those who were injured in the tragic building collapse that occurred at 75 Victoria Street in George on 6 May 2024.

"While Standard Bank was not involved in the construction of the building and had no role in the circumstances leading to its collapse, we recognise the profound human impact of this tragedy. We also acknowledge the recent appeal made by the families regarding the proceeds from the auction of the property following the developer’s liquidation.

"As the secured creditor in the liquidation process, the bank is awaiting final confirmation from the liquidators on the proceeds that may become available once statutory deductions, rates, taxes, and winding-up costs have been concluded. This process is still underway and is expected to take several months to finalise.

"Standard Bank is committed to demonstrating compassion and goodwill in honour of the families affected. We are considering an appropriate mechanism through which assistance can be provided.

"We also acknowledge and appreciate the broader George community for the support, kindness and solidarity they have shown the families throughout this difficult period.

"Standard Bank remains committed to acting with integrity and empathy as this matter progresses."

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