Question NW1757 to the Minister of Public Works
03 September 2018 - NW1757
Ryder, Mr D to ask the Minister of Public Works
What (a) number of properties owned and managed by his department were leased in each province (i) in each of the past three financial years and (ii) since 1 April 2018, (b)(i) was the annual income and (ii) were the annual costs (aa) in total and (bb) per square metre and (c) how many square metres were leased in each case?
Reply:
(a) (i) and (ii), (b) (i) and (ii) (aa) and (bb), and (c)
Attached to this reply is an Excel spreadsheet, marked as Annexure A, which provides details on what has been asked in the question above. But, to put matters into context the Honourable Member should note the following:
1. Annual income lower than annual costs
We acknowledge that rental income is significantly low in many instances. However, we are committed to rectifying the matter through the renegotiation of all existing leases with private parties.
In 2015, the Department launched a pilot project on coastal State-owned properties leased out to private persons and or companies. During the pilot project, the department renegotiated expired leases on coastal properties and succeeded in increasing rental rates of individual leases as an interim measure.
The Department is currently working with National Treasury to finalise an Acquisition and Disposal Framework, which in addition to other processes, will allow the Department to negotiate all existing and active leases with private persons and or companies. This will enable the Department to charge fair rental prices not less that property rates and taxes payable on the required property.
In cases where the tenant is not willing to renegotiate rental rates, the Department will approach the courts for the lease to be set aside, as it will not be serving the public interest to maintain the status quo.
2. No annual costs recorded for the period 1st April 2018 to date for the following regional offices
(a) Mpumalanga
(b) Free State
Costs in these regional offices are currently being processed and will be recorded before the end of the financial year (2018/19).
3. No income recorded for the period 1st April 2018 to date for the following regional offices:
(a) Northern Cape
(b) Mpumalanga
Payments in these regional offices are being processed and will be recorded before the end of the financial year (2018/19).