Eastern Cape Roads and Public Works MEC, Ms Thandiswa Marawu's statement on the state's disposal of immovable assets in the province of the Eastern Cape as presented at a media briefing in Port Alfred
3 May 2012
The Mayor of Ndlambe Municipality Cllr Sipho Tandani,
The Municipal Manager Advocate Rolly Dumezweni,
Acting Head of Department (HoD) Mr Eugene Jooste,
Officials of both my department and the municipality and media.
Good morning to all of you. Thank you for your response to the invitation.
I would like to welcome all of those present, especially the media, to this exciting announcement and from the outset would like to particularly thank Mayor Tandani for allowing us in his area to have this media briefing and to officially hand over land parcels to the communities of Marselle and Nkwenkwezi.
The purpose of this media briefing is to facilitate the communication of the opportunities, benefits and process of the Immovable Asset Disposal Framework to the public.
Immovable asset disposal framework
The Department of Roads and Public Works is the custodian of immovable provincial assets in terms of the Eastern Cape Land Disposal Act. The department must ensure that all such assets are optimally utilised to address the service delivery objectives of the province. Assets which are superfluous for service delivery objectives should be disposed or reallocated. The Government Immovable Asset Management Act (GIAMA) created a stimulus for the Province to commence with the release of land on which our disposal policy and strategy is based.
The process of Giama determined that for the 2012/13 financial year, the province would require R4 billion to maintain its immovable assets. It is then strategic for the provincial government to transfer properties that are key to unlock social economic development amongst property-less individuals and communities.
This process will save provincial government on its limited maintenance budget as well as on property rates and taxes. However, the emphasis is not on savings, but developmental value in addition of this noble exercise.
The department is committed to dispose properties to local municipalities and individuals in order to contribute to the socio-economic development within municipalities and upgrade of tenure for previously disadvantaged individuals. Transfers to individuals will contribute to redress the skewed ownership of land in the province, and will enable beneficiaries to access resources from financial institutions to improve their livelihood.
The Immovable Asset Disposal Policy of the province therefore aims to achieve the following: To promote property ownership in the previously disadvantaged communities in the province To unlock a revenue stream from disposals for new capital and maintenance works in order to optimise the current Immovable Assets within the Province To stimulate economic development resulting in job creation To avail land and non-core state facilities for socio-economic development within local municipalities.
In terms of the Disposal Strategy, the department will focus on the release of immovable assets in the following categories:
1. Underlying land on which townships (RDP-housing) have been established
Through the recent land audit done by the department, various land parcels have been identified which consists of township establishment, the land is registered in the name of the provincial government of the Eastern Cape and houses erected through the RDP process. These land parcels will be handed to the various municipalities to ensure upgrade of tenure.
2. Residential properties (Income leases)
2.1 Tenants leasing property 10 years and longer
The asset register of the department of Roads and Public Works has a residential portfolio of approximately 1 040 properties which are leased out. With a view to execute the service delivery objectives of the department, tenants who have occupied a certain property for 10 years and longer are given the opportunity to purchase the property at market value without a formal tender process.
The process has commenced with the identification of the properties and the verification of 10 years or longer occupation. Once this is finalised, option to purchase and deed of sale will be distributed to qualifying tenants for acceptance. The purchaser will have a three month period from date of acceptance to raise capital for the purchase. The normal process of conveyance will follow hereafter. Each specific property transaction will be dealt with on its own merit
2.2 Open bid process
In the case where a tenant lease a property less than 10 years, it will go through the normal tender procurement procedures at market related value A dispute resolution committee has been formed
3. Public service infrastructure Assets (e.g. parks, cemeteries, road reserves, etc.)
Throughout the province there are properties which falls into the abovementioned category; DRPW intends to transfer these properties into the custodianship of municipalities;
4. Vacant land
All vacant land identified by both parties (DRPW and individual municipalities) for development through an adequate motivated and bankable business plan will be considered for disposal through transfer to municipalities.
5. Assets of a strategic and investment nature
This category includes land and buildings which could be utilised, egg, for development purposes. The intention here is to call for development proposals from private sector to form partnerships with provincial government in order to generate income for the province on a long term basis.
All immovable properties, with the exception of public service infrastructure and assets occupied by beneficiaries for more than ten years, will be disposed through an open bid system at market value in terms of the requirements of the Public Finance Management Act (PFMA).
Properties donated to municipalities and other beneficiaries will be subject to a reversionary clause in the Title Deed in order to protect the interest of the public and the State. This will prevent speculation and the incorrect use of the land by the acquirers.
The transfer of land earmarked for human settlement and township establishment to municipalities will also be subject to timeline conditions in order to ensure that identified beneficiaries obtain ownership status soon.
Land parcels to the communities of Marselle and Nkwenkwezi
A ceremony wherein I will hand over land parcels to the municipality will be held at Marselle Community Hall hereafter. The ceremony will be preceded by an unveiling at the entrance of the New Rest Informal Settlement to signify the transfer of the land parcels to the community and the municipality by the department.
A total of 785 properties, which includes 773 residential sites and 12 public service infrastructure sites, will be transferred to Ndlambe municipality through this process. The process will involve the preparation of the Deeds of Donation and transfer documents for signature the parties resulting in the registration of ownership in the deeds office.
The following are properties to be transferred:
- Marselle: 507 properties
- Nkwenkwezi: 278 properties.
A list of all the properties to be disposed in the Marselle and Nkwenkwezi areas is available on request. A total number of 6 410 (RDP) properties in the low cost housing category will be disposed through transfer to various municipalities in the province.
Remember, together we can do more.
I thank you!
Issued by: Eastern Cape Roads and Public Works
3 May 2012
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