In the corporation's annual report released yesterday, he notes that moves to convert the ECDC's property portfolio into more liquid assets were delayed until March this year.
The ECDC is one of the province's largest property owners, with some 2,000 properties which include more than 120 factories in Mthatha, Queenstown, Butterworth, Fort Jackson, and Dimbaza. There is also a range of industrial and commercial properties in rural towns in Transkei and the former Ciskei.
The report reveals that most of the 2,147 properties have been professionally re-valued and deeds searches are being conducted and the status of tenure investigated.
It notes the ECDC does not have title deeds or legal title to occupy all the land on which its properties are located, and several processes are under way to rectify this.
Earlier this year, Economic Affairs, Environment and Tourism MEC Mbulelo Sogoni said the provincial cabinet had approved the sale of the properties owned by the ECDC. These, he said, had a book value of at least R360-million.
It was disclosed at the time that the sale of the properties could mean the loss of 41 jobs, the number of people employed for maintenance work and administration.
The salary bill for the 41 staff is R8,5-million, while a further R5,6-million is required annually for upkeep.
Properties of which 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".
Other properties will be disposed of in the medium and long term.
Explaining the rationale for disposing of the properties, Sogoni said that if they were to be retained it would be essential there was an effective income stream from them, and achieving this would require a major administrative effort the ECDC is "not geared to perform".
The cabinet says if the properties were disposed of this would release R360-million in funds for investment into the province's economy, boost the ECDC's income stream as a result of the interest return on loan funding for the conduct of its business operations, and end the existing drain on its resources.
Eastern Province Herald
Publisher: I-Net Bridge
Source: I-Net Bridge
