Government involvement in the property charter process is essentialfor its success, says the South African Institute of Black Property Practitioners.

Institute spokesman Andy Tondi says the charter is similar to the miningcharter in that it deals with the "core of our liberation struggle", whichif not addressed properly now it will "come back on us in the future".

The institute's first option is for government to drive the processas with the mining charter. "We agree with the government stance of nonparticipationon all other charters, but we believe the property charter needs a politicalboost," says Tondi.

There is concern that the proposed property charter could duplicatewhat already exists under the financial services charter. Some say thatas banks own listed and unlisted property and have to adhere to the financialservices charter, a property charter may mean duplication.

However, the institute says property is the "biggest business" in theworld and it will not allow property to be "subservient to a financialservices charter".

Most commercial properties are owned by financial institutions and lifeassurance companies that "belong to the financial services charter. Wealso know that a company or an organisation cannot belong to more thanone charter. This poses a dilemma for these financial institutions andlife offices with regards to the support of the property charter," saysTondi.

The institute believes that financial institutions are "not in the propertybusiness; they hold and own property by default. We will urge them to empowerblacks and women by disposing of their property portfolio to enable themto stick to their banking or life assurance business."

Tondi says most big companies with diversified business interests willbe affected by the charters of more than one sector. This challenge willhave to be dealt with through Business Unity SA.

He says that another view being touted is that the property chartermust concentrate only on property services as opposed to ownership. Tondisays the institute disagrees with this because owners "dictate procurementprinciples".

The institute subscribes to an all-inclusive property charter that willinclude both commercial and residential properties, according to Tondi.

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