MEC for the Gauteng Department of Infrastructure Development, Jacob Mamabolo has rubbished suggestions that the provincial government is disposing of assets to raise funds.
“Gauteng government is not broke, these assets are disposed of because they have been identified to not be at the core business of government,” Mamabolo explained.
The MEC hosted a media briefing where it was revealed that 17 immovable assets owned by the provincial government would go on auction. According to the MEC, the identified properties were not contributing to the generation of revenue for the province and would be put to better use if they were sold to the public or interested entities.
The first public auction will officially open on 5 December and close on 12 December. Mamabolo also announced that the method of disposal would not be the traditional live auction where potential buyers were gathered under one roof and the property was auctioned in a matter of minutes.
“The province has opted for an online auction disposal methodology,” he said. “This includes provision for an Internet-based platform for a pre-determined period of time with each lot sequentially closing at a given time. We are convinced that the online auction will provide for a transparent, auditable, convenient and competitive asset disposal process.”
He also highlighted that the properties identified for disposal would be sold in their current condition on a voetstoots basis, meaning that the province would not undertake any improvements on the identified properties.
Potential buyers were encouraged to register on the auctioneer’s website – www.tirhani.co.za – before the official opening of the auction.
The official residence of the Premier of Gauteng Province, situated in Bryanston will also be auctioned during this period. Potential buyers are encouraged to contact the auctioneer to view the property or obtain further details.
Mamabolo assured the public that the disposal process would be done in a transparent, accountable and fair manner. “We will make sure that the process does not favour any one person over another,” Mamabolo said, adding that politicians and provincial government employees would not be allowed to purchase any of those properties.
As some properties were occupied by tenants, the MEC said his department was taking steps to ensure that the occupants were given a fair opportunity to participate in the process. He mentioned that tenants who have expressed an interest in purchasing would not have to participate in the auctions, but will be given the right of first refusal to either buy the properties they are currently occupying outright for the sworn open market valuation value, or to match the price of the highest bidder at the close of the auction.
Tirhani Mabunda, the appointed auctioneer, highlighted that online auctions were nothing new. He said his company had been running a number of online auctions, including those of government departments. He said they would give assistance to all prospective bidders.
Details: www.tirhani.co.za
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