Public Policy Correspondent

SIPHO Mashinini, CE of Transnet property division Propnet, said yesterday t he would resign his position at the end of next month to pursue a career in the private sector.

His resignation comes only days after that of Xolani Mkhwanazi, head of the National Electricity Regulator, who has also been lured by the private sector.

The public sector has lost a number of highly competent individuals in recent months, who have chosen to pursue private business interests.

Speaking from a hospital bed in Sunninghill, Johannesburg, where he is recuperating from a back injury, Mashinini said he wanted a new environment after being with Propnet for nearly eight years. "There are lots of better opportunities outside Transnet," he said.

Mashinini said there was a dire need for qualified black people in the commercial property industry, hence he had decided to join a private company in that sector.

He declined to name the company, but said an announcement would be made soon.

Transnet, through Propnet, is the second-largest property owner in SA after government.

Mashinini said his biggest achievement during his tenure was to attract a large number of tenants to occupy space in Johannesburg's Carlton Centre.

He said office space at the 50storey building, which Propnet bought for R32m about four years ago, was being taken up at an unexpected rate. Currently 90% of tenants used the space for offices and the rest for commercial purposes, he said.

Retail store Pick 'n Pay and the South African Revenue Service would soon be among Propnet's new tenants, Mashinini said.

"That alone will boost the (revenue) of the Carlton Centre and the central business district (of Johannesburg)," he said.

The Carlton Hotel is also set for a major revamp in the next financial year.

The 700-room building would be developed into an upmarket residential facility.

Propnet is expected to post a R34m operating profit for the current financial year to March.

Last year the company posted a net loss of R17m, as a result of the "various challenges in the property market".

Jan 28 2004 07:10:33:000AM Khulu Phasiwe Business Day 1st Edition