North West Department of Public works, Roads and Transport responds to queries regarding sale of state property to Premier Thandi Modise
31 Aug 2012The sale of a state property belonging to the North West Department of Public Works, Roads and Transport to the Premier, Thandi Modise, was above board as sanctioned by the responsible state departments.
The transaction in question was entered into in 2006, when she was Speaker of the North West Provincial Legislature through an open and transparent process to dispose of a total of 108 state properties that were declared redundant and inhabitable in accordance with the Land Administration Act No 2 of 1995, sub-section 3(c).
“Due to the continually deteriorating state of repairs, as well as expenses towards rates and taxes incurred by the department at that time, a decision was taken by management to dispose of the properties in question. Furthermore in complying with the government policy on the state properties declared redundant and inhabitable, the Department was correct in disposing of all the 108 properties that belonged to the state including the one that Premier Thandi Modise bought”, says the MEC for Public Works, Raymond Elisha.
The Department placed advertisements in the extra-ordinary government gazette in September 2008 as well as in the local newspapers calling for interested parties or individuals to bid for the advertised state properties.
“The majority of the 108 state properties so disposed were occupied by public service officials, politicians and private persons, who all had the first option to purchase. The average purchase price for the properties was R110 000, far below the price for which this specific house was bought for.
The total number of state houses sold to state employees at the time, was 216 at the value of more than R22m. Premier Thandi Modise’s property was sold to her for R405 000. At the time, it was valued at R450 000. In accordance with policy, all first time home-owners were granted a 20% discount, whilst second time home- buyers were offered a 10% The R45 000 difference in the valuation and the actual price paid represents the 10% discounted amount, which was offered to buyers and not only to the then Speaker,” says MEC Elisha.
“It must be emphasised that a period of almost two years (2006-2008) elapsed between the actual offer and actual transfer of the property due the fact that the department had to seek the approval of the Minister if Land Affairs in order to finalise the transaction. The transfer of the property to her name was done on the 27 November 2008. All records in regard to the sales of these state assets including hers are available for public scrutiny” remarks MEC Elisha.
“Since the signing of the offer to sell and offer to purchase agreement between Premier, who at the time was serving as the Speaker and the Department, we have never carried out any renovations at the said property as alleged. All renovations and replacements were done at the cost of Premier Modise, who is the legitimate owner of the property in question,” concludes MEC Elisha.
Lesiba Moses Kgwele
Tel: 018 388 3705
Cell: 083 629 1987
Fax: 086 620 4802
Issued by: North West Public Works, Roads and Transport
31 Aug 2012
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