Staff Reporter
The Free State provincial government is planning to sell over 60 vacant properties in the next few months as it seeks to consolidate its property portfolio and make it easier to manage.
Public Works, Infrastructure and Human Settlements MEC Motshidisi Koloi said in her budget vote speech delivered on Friday at Teto Secondary School in Welkom that the properties which are located across the province will be advertised at the beginning of the financial year.
“The department plans to dispose of 68 vacant sites and 14 plots,” said Koloi in her R1.7 billion budget speech.
The properties are situated in Clocolan, Trompsburg, Charlesville, Wepener, Edenburg, Smithfield, Bloemfontein, Botshabelo, Thaba Nchu, Hertzogville, Odendaalsrus, Frankfort, Heilbron, Koppies, Orangeville, Kroonstad and Winburg.
“These vacant sites will be advertised during the first quarter of the 2021/22 financial year,” she added.
The Department of Public Works and Infrastructure is the custodian of provincially owned properties and is responsible for maintaining this property portfolio which contributes towards the investment value and revenue potential of the province.
The register, according to Koloi, currently has a total of 4 872 immovable assets worth R11.1 billion.
The department will also audit its property portfolio over the next three years in order to identify other properties, including houses, which will be disposed of.
Koloi also said 95 farms owned by the provincial government, which include resorts, will also be made available for the black majority for the production of agricultural products.
Turning to the issue of rates and taxes owed by government departments to local municipalities, the MEC said they have made strides towards settling their bills in the face of budget cuts.
“Despite the fiscal constraints and the recurring shortfall on our budget for municipalities, a total amount of R303 million has been paid to municipalities for water and electricity and R436 million has been paid for municipal rates and taxes in the current financial year,” she said.
Of these amounts, Koloi said R256 million was paid to Mangaung Metro; R71 million to Centlec; R139 million to Matjhabeng and R83 million to Maluti-a-Phofung Local Municipality.
For the 2021/22 financial year, a total of R263.1 million is budgeted for municipal services and R458.5 million for rates and taxes.
Mangaung Metro, Centlec, Matjhabeng and Maluti-a-Phofung remain the biggest beneficiaries of this budget.
Over the years, some municipalities have struggled to meet their obligations to suppliers and service providers claiming several government departments owed them millions in outstanding rates and taxes.
Meanwhile, the department is expected to facilitate the creation of 56 000 work opportunities across all spheres of the provincial government in the new financial year under the Expanded Public Works Programme.
