SOMERSET-WEST – For many, purchasing a unit in a Balwin Properties estate like Paardevlei Lifestyle Estate in Somerset West, The Huntsman in Firgrove or Greenbay in Gordon’s Bay represents an investment in a premium, secure lifestyle.

However, a growing chorus of homeowners claim that behind the high-end finishes lies a modus operandi of financial opacity, intentional delays and a systemic lack of transparency that is pushing residents to the brink of foreclosure.

In an interview with DistrictMail & Helderberg Gazette, homeowners detailed a harrowing list of grievances from multiple developments, ranging from multi-million rand municipal arrears to allegations of racketeering with body corporate structures.

The core of these owners’ frustration lies in the governance of these estates. Residents claim the democratic process intended for sectional title schemes has been bypassed. Hannelie Jacobs, a resident at Paardevlei, alleges that the developer’s grip on the Board of Trustees is absolute.

“Steve Brookes, CEO of Balwin Properties was chair, and Balwin employees were trustees,” Jacobs explains. “He appoints himself as chairperson every year; he can override all decisions.”

Balwin Properties argues that this structure is not only lawful but an “industry standard” for large-scale phased developments.

Stepped down

In a formal response, the developer clarified that while Brookes served as chairperson at Paardevlei Lifestyle Estate to assist with “longstanding matters involving the City of Cape Town,” he has since resigned.

The company emphasises that during the development period, which only ends one year after the final unit is completed, the developer carries “substantial financial, construction and operational risk”.

They argue that retaining control is a mechanical necessity to coordinate bulk infrastructure, road works and security systems that require “billions of rands” in upfront capital before all units are sold.

Financial mismanagement is the most pressing concern for residents, who claim that while they pay prepaid utilities diligently, the estates are falling millions of rands behind in municipal accounts.

While residents point to a massive debt, Balwin categorically denies that The Huntsman has ever owed R11 million. However, they admitted that a special levy was raised partly to cover a utility account. But Balwin never answered on monies owed by Greenbay or Paardevlei. Municipal accounts seen by DistrictMail & Helderberg Gazette show that Paardevlei Lifestyle Estate owed over R11 million to the municipality in 2025.

Balwin claims they are currently in negotiations with the City regarding overbilling. They stated that a payment arrangement is in place and that residents can expect a credit once the final due amount is confirmed.

Addressing concerns over “missing meter numbers”, Balwin stated that individual metering is managed by a third-party provider and is “actively monitored” in line with contractual requirements.

Homeowners have long complained about a lack of financial reporting, with some claiming AGMs are years behind schedule.

Balwin says The Huntsman Estate held its AGM on 31 March 2026, where the 2024 audited financial statements were presented.

The company attributed delays to the complexity of reconciling supporting documentation from third parties and remedial infrastructure matters.

Balwin adds that the Greenbay and Paardevlei estates are large-scale developments with extensive operational, municipal, remedial, governance and financial requirements.

“Factors that have affected the timing of AGMs and annual financial statements include the reconciliation of supporting documentation from third parties, remedial and infrastructure-related matters requiring clarification, changes in trustees and governance structures, external audit and accounting timelines, reserve fund planning, maintenance forecasting, compliance and applicable audit requirements,” it states.

Owners blocked

When homeowners ask for financial clarity, they claim they face “segregation” and administrative retaliation. Jacobs says vocal owners are being blocked from communication channels.

Balwin, in response, frames this as a matter of community standards.

The developer rejected allegations of systematic bullying, but admitted to moderating platforms only when communications become abusive, defamatory or disruptive.

Perhaps the most serious allegation involves a perceived cycle where aggressive special levies force owners into financial distress. One of the residents alleges that “the people buying at Sheriff’s auctions are the managing agents themselves”.

Balwin dismissed this as a conspiracy, stating that managing agents “do not control judicial foreclosure proceedings” and that failure to collect levies would “prejudice compliant owners”.

The Community Schemes Ombud Service (CSOS) confirmed six formal complaints have been laid. These are currently moving through various stages of conciliation and investigation.

On the matter of potential conflicts of interest at auctions, CSOS representative Zamangwanya Malgas noted: “Clearly there’s criminal or fraudulent activities happening in conduct of this nature. The National Prosecuting Authority or police will be best suited to deal with this type of matter.”

Homeowners of Paardevlei, Greenbay and The Huntsman are calling for a total overhaul, including forensic audits and legislative changes to ensure special levies are approved by independent bodies.

“How can a company listed on the stock exchange mislead people like this?” resident Tammy Waites asked. “We pay for their mismanagement, but we are barred from changing the trustees. We want our estates back.”