Sigcau to crack the whip on property sector's transformation

Posted On Tuesday, 02 November 2004 02:00 Published by
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PUBLIC Works minister Stella Sigcau yesterday launched the property transformation charter process, saying she hoped to have the charter ready by June next year.

Property Reporter

PUBLIC Works minister Stella Sigcau yesterday launched the property transformation charter process, saying she hoped to have the charter ready by June next year.

She gave no details of targets for black involvement in the industry, which has been one of the slowest to change.

Sigcau said it was "imperative" the public works department played an active role in the development of the charter because, as a custodian of government's immovable property, the department was a key player in the property sector.

Commercial property association Sapoa was present at the launch.

Government's property portfolio is estimated to be worth about R120bn.

In 2003-2004 R1bn was paid in leases by government to the private property sector.

Public works department director-general James Maseko was also present at the briefing in Sandton, Johannesburg.

He said when government looked to build new accommodation for government departments it would look to work with property groups with black economic empowerment credentials .

Marius Muller, a director of Kagiso Intaprop, says the South African listed property sector is lagging when it comes to the transformation process.

Muller says that out of 138 directors on the boards of 14 listed property companies he studied at the beginning of the year, only two were black and three female.

He found that there were no black females on the boards of the listed property companies he studied.

Sigcau, who was speaking at a press conference at the Sandton Sun International Hotel, also said her department expected the property industry to set "stretch" targets to achieve the charter objectives and warned that should this not be achieved the department would "be forced to intervene in whatever way appropriate".

Department spokesman Thami Ngidi said one of the key features of a so-called stretch targets was they should significantly transform the property sector.
Nov 02 2004 08:36:07:000AM Nick Wilson Business Day 1st Edition


Publisher: Business Day
Source: Business Day

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