By Deon van der Merwe

The provincial government's multi-million-rand plan to centralise the head offices of its departments in Bhisho is on the threshold of a major breakthrough.

Speaking in East London yesterday, Finance MEC Billy Nel said Bhisho was about to sign an agreement with Copper Moon Trading, the company which owns the old Amatola Sun Hotel and Casino complex, giving it the go-ahead to upgrade and refurbish the establishment to four-star status. The property was bought from the Souther Sun hotel group by trucking and property tycoon Tony Cotterell after it closed down.

It later changed hands again and in the interim fell into a state of disrepair as it became the centre of a drawn-out legal battle involving the government, which had designs on turning it into an office block. Later, during hearings by the Pillay Commission, it emerged that the Bhisho government had attempted to overturn the purchase of the hotel, despite expert advice that the building was not suited to conversion into office space.

"I believe that a deal is about to be signed which will allow the owners of the hotel (Copper Moon Trading) to proceed with its plans to rebuild the hotel. A figure of R5-million is involved," Nel said, emphasising Bhisho's need for suitable hotel and conferencing facilities.

"Right next door to the hotel the government owns 39ha of land on which we plan to build 40 000m of office space. Planning and design will focus on a government complex which will turn Bhisho into a highly functional and aesthetically pleasing one-stop provincial government shop which will help cut down on expenses and promote service delivery."

The provincial capital, Nel said, would be a commuter-friendly destination. "We have a double highway to East London and plans are on the boards to upgrade roads down to Port Elizabeth. Over R100-million is being invested in Bhisho's world-class airport at Bulembu, and with the provincial rail upgrade programme under way, a 2km link from the East London-King William's Town line is a feasible reality."

Nel admitted that centralising would mean considerable movement of staff. "We would have to look at issues such as housing allowances and subsidies. Already the private sector has identified the need for housing and a developer recently launched a project which proposes 330 residential units in the Balassi Valley on the outskirts of Bhisho."