The sale of Premier David Makhura’s official residence in Bryanston has been welcomed.
The DA’s Jack Bloom said he is pleased that the provincial government is finally getting rid of what, he described as a white elephant.
On 6 December, the Department of Infrastructure and Development visited the premier’s mansion, which is currently on auction. Speaking at the event, Bethuel Netshiswinzhe (head of department), said the day marked a critical milestone for the department as they embark on the disposal of non-core State properties.
Bloom said he was hoping the department would not just give away the house and would actually recover taxpayers’ money, which was spent on the house.
The house was bought in 2004 for R11.4 million for then-premier, Mbazhima Shilowa. Since becoming premier of Gauteng in 2014, Makhura has not lived at his official residence. He only used it for holding some meetings and occasionally hosting guests.
According to Bloom, from 2004 to date, close to R20 million has been spent on upgrades and the upkeep of the house. He mentioned that the provincial government spent at least R1.5 million a year, including gardening, R309 000; cleaning, R300 000; water and lights R227 000; rates and taxes R195 000; and R500 000 for maintenance costs.
“This money could build about 45 RDP houses,” Bloom stated. He also mentioned that he hopes the house will not be sold for less than R30 million, based on the amount of money already spent on it.
However, Tirhani Mabunda, the auctioneer, said the opening bid was R9.25 million, but explained that it does not mean that is what the house will be sold for. “People will compete, buyers will determine, in their own wisdom, using their own pockets, as to how much they are willing to pay for the property,” Mabunda stated.
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The market value of the house is R14.5 million.
DA Shadow MEC for Infrastructure and Development, Alan Fuchs, said he was concerned that the department was disposing of these properties without a policy in place. “They are just rushing the whole process,” said Fuchs.
Netshiswinzhe, however, disputed this claim and said they have a proper policy in place on asset disposal, highlighting that they just completed the provincial asset register which, he said will be instrumental in the entire process of disposing of the assets. He also mentioned that their policy proved to be a winning formula as other provinces were already consulting them to use their policy as a model.
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Netshiswinzhe said the auction will not only save money for the maintenance and upkeep costs but also generate funding for other provincial government programmes of transformation, modernisation and re-industrialisation. “The principle of realising value out of this disposal process is highly fundamental. It is for that reason that the process will be based on competitive market values of the properties,” Netshiswinzhe said.
The premier’s official residence is among the 18 provincial government properties currently on auction. The auction closed on 12 December and the highest bid was for R17 075 000. Background checks on the bidder still need to be completed before the sale can go through.
Details: www.tirhani.co.za
