Infrastructure
With regard to the Princess Street Hall (erf 12455, Walmer Estate, Cape Town), which was sold by the Western Cape Government to the Indoni Dance and Arts Academy NPO (purchaser) on or about 12 March 2020 and transferred on 19 April 2021 from the Province (seller) to the purchaser:
(1)(a) When did the Western Cape Government determine that the public asset was “surplus”, (b) what process was followed to determine that the Hall was surplus, (c) how did this process comply with section 5(1)(f) of Government Immovable Asset Management Act, 2007 (Act 19 of 2007), and (d) what process was followed to select the purchaser of the site;
(2)whether the disposal did comply with section 3(1) of the Western Cape Land Admin-istration Act, 1998 (Act 6 of 1998), and in particular with the requirement for a reversionary clause; if so, what are the relevant details;
(3)(a) what were the special conditions of sale, registered in the title deed, with regard to the use of the property after it was purchased or transferred and (b) can a copy of the title deed be made available;
(4)since the Princess Street Hall has not been used for any purpose since the purchase or transfer of the property, whether his Department has conducted any monitoring to determine whether the special conditions have been complied with; if not, why not; if so, what are the relevant details;
(5)whether his Department has engaged with the purchaser, as contemplated in sec-tion 3(1) of the Western Cape Land Administration Act, 1998, to determine if the purchaser “no longer wishes to utilise it for the purpose for which it was acquired”; if not, why not; if so, what are the relevant details;
(6)whether his Department received any application for a different use of the property; if so, what are the details of the different use;
(7)whether he provided written approval for the different use; if so, why?
(1)(a)(b) After the former Department of Transport and Public Works and the City of Cape Town indicated that they were not interested in taking transfer of the property, in-principle approval was obtained in 2018 to sell the property to Indoni Dance and Arts Academy NPO (hereinafter “Indoni”) through direct negotiations, in terms of the Departmental Disposal Policy adopted on 3 May 2019 with immediate effect.
(c) Because the property came into the possession of the Western Cape Government under the control of the former Department of Human Settlements in terms of 14(2)(a) of the Housing Act, 107 of 1997, its disposal was regulated by section 14 of the Housing Act and section 22 of the Western Cape Housing Development Act, 6 of 1999. The City of Cape Town and the former Department of Transport and Public Works were not interested in the property and the broad social development and socio-economic objectives of the Provincial Government would have been achieved by the proposed utilisation of the property.
(d) Indoni’s unsolicited bid was accepted in-principle, after which the intention to sell was advertised for comments in terms of the Departmental Disposal Policy, which ultimately led to the approval and transfer of the property to Indoni.
(2) Refer 1[c] above for the applicable regulatory framework. In addition, the sale was subject to the registration of restrictive title conditions, limiting the use of the property to “the establishment and conduct of an educational and community facility” and a reversionary clause, which determined that should the property not be used for the intended purpose within a period of 5 years, calculated from the date of transfer, ownership of the property will revert to the Seller.
(3)(a) As mentioned in point 2 above.
(3)(b) A copy of the title deed is attached.
(4) The Property was transferred to Indoni on 19 April 2021. Apart from the façade wall that has been painted, it appears that the property is not being used for the intended purpose, nor does it appear to be maintained. In terms of the reversionary clause, the property will revert to the Seller if it has not been used for the intended purpose, “being the establishment and conduct of an educational and community facility” within 5 years of transfer – i.e., by 18 April 2026.
(5) As already noted above, the Western Cape Land Administration Act, 1998 (Act 6 of 1998) is not applicable to the property, as the property passed to the Provincial Government in terms of section 14(2)(a) of the Housing Act (Act 107 of 1997). The Department has been unable to reach the Chairperson of Indoni, after numerous attempts, to confirm the academy’s usage of the property and to confirm the reversionary clause condition and date of 18 April 2026. Staff members of Indoni, who have previously engaged with the Department on Indoni’s behalf, have since left the organisation. The Department will continue its efforts to contact Indoni.
(6) No application was received for a different use of the property.
(7) No approval was granted for a different use of the property.
