The Eastern Cape executive council has approved the sale of more than 2,100 properties owned by the Eastern Cape Development Corporation with a book value of at least R360-million.

The sale of the properties could mean the loss of 41 jobs - people currently employed for maintenance and other work, as well as the administration of the properties.

The current salary bill for the 41 people stands at R8,5-million while a further R5,6-million is required annually for upkeep.

Properties where disposal will be "immediate" will be those where the ECDC holds title, a current market value has been determined and where a willing purchaser has been identified "who meets the preferential criteria" set down.

Other properties will be disposed of in the medium and long term.

In a reply to queries from the standing committee on economic affairs, environment and tourism, MEC Mbulelo Sogoni said a steering committee was being set up in terms of the asset disposal policy to facilitate the sale and a service provider was being recruited to assist it.

The task team will take over the management of the property portfolio once it has been established.

Although a property register exists, information it contains has been identified as being defective with regard to valuation, extent and ownership while an audit of the register started in 2004 has not yet been completed.

It is claimed that if the properties are retained it will be essential that there is an effective income stream from the assets and achieving this will require a major administrative efforts that ECDC is "not geared to perform".

Eastern Province Herald
Publisher: I-Net Bridge
Source: I-Net Bridge