Two traditional communities, the Kwalindile Community and the Zimbane Community, lodged claims in 1998 with the Regional Land Claims Commissioner for the restitution of their rights in land situated within the Mthatha municipal area. Their claims included parts of land described as the Remainder of Erf 912. The Kwalindile Community claimed their community land was systematically "carved out" by the Transkei Government over 20 years for private development and governmental purposes. The Zimbane Community claimed they had lived on the fringes of the southern edge of the Mthatha commonage for generations and that their ancestral land included the Remainder of Erf 912. In 1997, the Minister for Land Affairs delegated powers to dispose of state property to the MEC, with conditions that development should not result in dispossession of people's formal or informal rights. In 1999, ownership of the Remainder of Erf 912 was transferred to the Municipality. During 2005-2006, the Municipality concluded long registrable leases with commercial property developers over portions of Erf 912, including a shopping complex built by the third respondent at a cost of R165 million. The Municipality then applied under section 34 of the Restitution Act for an order that the land shall not be restored to any claimant.