Repeal of the Overvaal Resorts Limited Bill [B 36 – 2017]

The Portfolio Committee on Public Enterprises invites you to submit written submissions on the Repeal of the Overvaal Resorts Limited Bill [B 36 – 2017].

The Bill seeks to repeal the Overvaal Resorts Limited Act (Act No. 127 of 1993). The Act was enacted to establish Overvaal Resorts Limited as a public company in order to hold and manage public resorts on behalf of government. The name of the company Overvaal Resorts Limited was later changed to Aventura Ltd. The Cabinet took a decision in 2001 to dispose of Aventura resorts. The company was eventually put under liquidation in 2012, thereafter the liquidation of Aventura was finalised. In light of the foregoing, the legislation that established Aventura is no longer relevant, hence the need for the repeal of the Act.

Comments can be emailed to Mr D Mocumi at [email protected] by no later than Friday, 25 May 2018.

Enquiries can be directed to Mr D Mocumi on tel (021) 403-8115 or cell 083 709 8512

Issued by Ms L Mnganga-Gcabashe, MP, Chairperson: Portfolio Committee on Public Enterprises

Background
The Overvaal Resorts Limited Act,1993 (Act No.127 of 1993), was enacted to establish Overvaal Resorts Limited as a public company in order to hold and manage public resorts on behalf of government. The name of the company Overvaal Resorts Limited was later changed to Aventura Ltd. The Cabinet took a decision in 2001 to dispose of Aventura resorts. Aventura acquired about fourteen resorts. Six of the resorts which were not making profit were the first to be disposed of to different purchasers. The remaining eight (8) resorts were sold to one bidder called Forever Resorts. However, difficulties were encountered when the eight resorts were being transferred to Forever Resorts. Some of the challenges which prolonged the transfer of the eight remaining resorts were the incorrect descriptions of the resorts from the deeds office, land claims and the resorts which were not registered under Aventura’s name but registered under government as at the date when transfer was sought to be affected. In an attempt to address these challenges and fast tracking the transfer process, an addendum to the sale agreement seeking to make amendments was concluded between government, Aventura and Forever Resorts in 2007. Notwithstanding this initiative, various challenges kept on recurring. As a result, liquidation was found to be the only viable option of disposing the Aventura resorts. In 2012, the former Minister of Public Enterprises passed a special resolution for the liquidation of Aventura. The company was eventually put under liquidation in 2012, thereafter the liquidation of Aventura was finalised. In light of the foregoing, the legislation that established Aventura is no longer relevant, hence the need for the repeal of the Act.