Underutilized government properties and land must be handed over to deserving communities: People cannot wait forever. Statement by the MEC for Human Settlements and Public Works Jomo Sibiya
Public Works Archie Gumede Conference Centre: I wish to inform the people of KwaZulu-Natal that as the Department of Public Works we are meeting over the next two days as part of mid-term performance review.
Today we discussed progress we have made in dealing with underutilised government properties across the province.
Relevant officials are giving reports on what have we achieved in addressing this matter.
On many platforms I have spoken out very strongly about government properties that are illegally occupied.
For instance, in Ulundi Local Municipality we have ministerial houses that have occupied illegally for many years. We also have properties in various secondary cities across the province.
We have committed to ensure that we either donate such properties to municipalities for human settlements purposes.
I have reminded senior management that the people voted this government into office and we can’t afford to relax when people are expected a lot from their government.
Months ago, we offered to lease underutilized state properties to emerging entrepreneurs and cooperatives involved in driving socio-economic development.
It should be remembered that in June we donated a property worth R1, 4 million to a community organization called Zamani Disabled People’s Organization located in Esikhaleni – Umhlathuze Local Municipality.
Importantly, over the next two days, I am interested to know progress we have made in transforming the property sector.
We also committed ourselves as the department to alter skewed economic patterns which have, for centuries, seen the majority of our people pushed to the periphery and denied the economic opportunities.
As part of the provision of office accommodation for all government departments, the department currently has 178 leases. Unfortunately, as I have pointed out in many platforms, the ownership of such properties is not reflective of the demographic of this country.
We all agreed that this sector is monopolized in the sense that properties, which are mostly offices, are owned by the same race group.
In order to achieve transformation objectives in hiring of office accommodation, we undertook to do the following:
- Establishment of Property Owner Database to explore the possibilities of some sort of exemption by National Treasury (provisions of PPPFA);
- Bid document amended with clauses preventing fronting through partnerships;
- Engagements with relevant external stakeholders, especially financial institutions such as Ithala, KZN Growth Fund and other financial institutions in order to assist previously disadvantaged groups;
- 51% of all Facilities Management Services must be outsourced to the categories listed above;
- The Department reserves the right not to award to bidders who have current leases with the Department to the cumulative value of R80m;
- Where a party intends submitting a bid on its own behalf for its own benefit utilizing the property owned by another party/entity/individual, that party is required to submit an original mandate from the owner of the property authorizing the use of the property by the bidder, as well as a shareholding /partnership agreement, setting out the relationship between both parties and how the benefits of the lease, if awarded, will be shared between the parties;
- Additionally, 30% subcontracting to be enforced on buildings above 900 m², with stringent controls in terms of preventing fronting;
- Leases below 900 square meters will be ring fenced for the previously disadvantaged communities.
- I have asked officials to present progress reports detailing what we have we done to implement this strategy.
I have also asked senior management to explain whether we are succeeded in developing an effective utilisation strategy for state immovable assets in order to advance radical socio-economic transformation?
Flowing from this two-day gathering, I have undertaken to focus on the Department of Public Works with the view of assessing the delivery of socio-economic infrastructure. I will visit all corners of the province.
Enquiries:
Ndabezinhle Sibiya
Cell: 082 375 4742
Mbulelo Baloyi
Cell: 079 871 3915 or 083 320 0274
