​Due to some media houses continuing to carry the misinformation being spread by some activist groups who have displayed their flexible relationship with the truth, and in the interest of the public, I would like to set the record straight on the recent public auction of city owned properties.

These auctions are set to bring in approximately R28 000 000, which will go directly towards the provision of services for our residents. This is in addition to the R1,2 billion that the City makes available for rates rebates and approximately R1,7 billion that we provide for residents who require indigent relief.

1. Why dispose:
A growing economy requires economic activity. By selling properties that are not being used economically by the City of Cape Town, we provide opportunities for entrepreneurs or aspirant home-owners to create jobs through developing these properties.

We choose to sell or lease these smaller properties because it makes it easier for small businesses and residents to compete for these properties as the tender process can at times be cumbersome for the general public. This allows any member of the public, NGOs and social benefit organisations to compete on an equal footing with established companies.
 
The property disposals by public auction / tender allows citizens access to residential opportunities, stimulates business, generates employment and provides much needed social care facilities.  All of which will contribute to an integrated and sustainable urban environment.
 
2. Auction versus Tender:
Auctions allow prospective bidders to be pre-qualified and are given the opportunity to engage with the auctioneers prior to the actual bidding regarding the property opportunities and constraints.
 
During the bidding, prospective purchasers better understand the price offered for the land and are able to meet, beat or withdraw from the bidding.
 
Tenders are the mechanism used with large property transactions that include a sophisticated technical response to the transaction.
 
3. Auction Disruption:
It is very sad that the actions of a few people disrupted a legal process and denied our ordinary residents and public benefit organisations the right to bid for properties. The City cannot condone such lawlessness.
 
To substantiate the above statement: More than 40% of the sales concluded for the period July 2018 to date, were to individual purchasers, giving real opportunities to the residents of our City to invest in their own property, or business venture.
 
As can be seen from the list of properties the majority are small parcels that lend themselves to individual ownership and development. 18 are zoned residential, 1 for mixed use which includes residential, 7 for community purposes and 8 for business purposes, which illustrates my statement above.
 
The City expects to raise additional income of R 28 000 000, (equating to an Average of R875,000 per site) should we achieve our reserve prices at the auction – this is money that goes directly into delivering services for our residents.
 
The City is in discussions with the auction service provider regarding future reconvening of the auction.
 
4. ANC threatening court order interdicting the City from auctioning public land:
This is a very short-sighted approach and contrary to the organisation’s own policy on land ownership. As stated above it is denying our ordinary citizens and public benefit organisations the opportunity to own land.
 
With the lowest unemployment in the country we will continue to ensure that we create an environment in which job opportunities can be created. A healthy economy is fundamental to the creation of job opportunities for our residents and we cannot allow a handful of people to deny the rest of our residents their right to participate in the economy.
 
End