The Department of Public Works has taken note of the recent media reporting about the recently renovated Rygersdal building, in Rondebosch, Cape Town. We would like to put into perspective the renovation work done at the property:
The building is a state owned property that has been in the government asset register for years. The Rygersdal building was in a bad state before it was renovated, due to lack of maintenance.
This upgrading is also in line with the government decision to own properties in a bid to save on rental costs and in turn make money where possible.
The Department took a decision to reconfigure the block of flats in order to increase the accommodation capacity of the units from 22 to 28. This was done to obviate the need for the usage of hotels, thus saving government a lot of money in the long run.
It is also important to note that the market for the renovation of the property was tested a number of times through an open tender process, and finally the tender was awarded to the most cost effective bidder for the quality of the specifications needed and it was awarded to a local bidder.
We note the concerns about the rental costs per unit and would like to point out that the rentals being charged for the different categories of officials, is historical, emanating from the Ministerial handbook. The Ministerial handbook is currently under review, and these rentals are likely to change, to reflect the market related value.
Also DPW has updated its own norms and standards in the prestige portfolio.
The department will put any surplus of its stock for rental to generate income through the Property Management Trading Entity (PMTE) of the department.
Enquiries:
Thami Mchunu
Director: Media and Stakeholder Relations
Cell: 079 519 6997
Tel: 012 406 1841
