PORTFOLIO COMMITTEE ON PUBLIC WORKS

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PORTFOLIO COMMITTEEONPUBLIC WORKS

• PARLIAMENTARY VILLAGES
• 16 OCTOBER 2007

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PRESENTATION OUTLINE

1. Review of the Parliamentary Villages Board Act.
2. Refurbishment of the accommodation units
3. Graaff Trust restrictive condition on title deed
   buy-out
4. Possible relocation of Members of Parliament to
   Central Cape Town

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1.Review of the Parliamentary Villages Management
Board Act.

• The Parliamentary Villages Management Board had
  four Board meetings during 2006/2007. Next Board
  meeting scheduled for 23 October 2007.
• A workshop was held by the Board on the 14 June
  2006 whereby various interpretation of the PVMB
  Act were discussed.
• In the Board meeting held on 12 September 2006,
  the Board recommended the option of repealing the
  Act and that the Board be de-established.

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Review of the Parliamentary Villages Management
Board Act.

• The board is in the process of discussing interim
  arrangements, such as a governance mechanism and
  an accommodation allocation policy when the act
  is repealed.
• The Board is also in the process of briefing the
  Minister of Public Works about the
  recommendations to repeal the act before it
  proceed with the process of repealing the act.
• Way forward will be discussed at the next Board
  meeting.

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2. Refurbishment of the accommodation units

• The status of the refurbishment of the units
  occupied by Members of Parliament are as
  follows
• Completed (289)
• Acacia Park 206 houses
• Laboria Park 31 houses
• Pelican Park 52 houses
• In Progress (12)
• Acacia Park 01 house
• Laboria Park 04 houses
• Pelican Park 07 houses
• Outstanding (36)
• Acacia Park 0 houses
• Laboria Park 27 houses
• Pelican Park 09 houses
• Total costs of refurbishment to date are R66,
  409,807.00
• Total costs on interior decorating to date are
  R24, 075, 755.00

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3. Graaff Trust restrictive condition on title
deed buy-out

• Acacia Park was acquired during world war two
  from the Graaffs Trust at a nominal cost, however
  it included a restrictive condition that
  indicated that the land be used for Defence
  purposes or as a civil aerodrome only.
• Due to the complaints of the condition of the
  residences and the water and electricity
  interruptions the department wanted to invest
  substantial capital funds but then it reflected
  on the fact that the property had the restrictive
  condition.
• Independent legal opinion from Senior Council was
  clear and emphatic that the Graaffs Trust had
  the right to exercise there pre-emptive right or
  to be compensated appropriately if the land was
  not used for the specific purpose it was sold
  for.

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Graaff Trust restrictive condition on title deed
buy-out

• An investment analysis conducted by the
  department indicated that it would cost between
  R300 R350 million to relocate Acacia Park.
• An independent valuation was done which indicated
  that the market value of
• Land and improvements are R142million
• Land only R125million
• Based on the above the department entered into
  negotiations with Graaffs Trust and a settlement
  amount of R110million was agreed upon on the 22
  March 2006.

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5. Proposed Relocation of MPs to Central Cape
Town

• Members of Parliament and Sessional Official are
  accommodated at Acacia Park, Laboria Park and
  Pelikan Park.
• In a meeting held on the 21 February 2007
  Parliament requested the department to
  investigate two options,
• (1)possible relocation of Members of Parliament
  to central Cape Town (2) relocating two other
  villages into ACACIA Park and maintain it as a
  central village park.

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• THANK YOU