Small Enterprise Finance Agency still leaving township industrial parks in the lurch

NATIONAL ASSEMBLY

QUESTION FOR WRITTEN REPLY

“2657. Mr R W T Chance (DA) to ask the Minister of Small Business Development:

(1)        Whether the R163 827 014,90 spent to date by the Gauteng provincial government on industrial parks in the province is reflected in the accounts of the Small Enterprise Finance Agency (Sefa); if not, why not; if so, (a) how is this expenditure reflected and (b) what repayment will Sefa make to the provincial government;

(2)        have the improvements resulting from the specified expenditure resulted in an increased rental collection rate from tenants at the industrial parks; if so, what are the relevant details;

(3)        has Sefa set aside a budget to appoint a service provider to assist the tenants of the Gauteng industrial parks to take over ownership and management of the parks; if not, why not; if so, (a) what amount has been budgeted and (b) over which period;

(4)        whether a service provider has been appointed; if not, (a) why not and (b) what criteria will be used to select a service provider; if so, (i) what are the details of the service provider and (ii) what criteria were used to appoint the specified service provider?”

NW2947E

REPLY:

(1)(a)   On the sefa books, improvements reflect on the value of the properties.  Total amount spent on sefa properties is approximately R30m (roofing, painting, fencing, doors, electrical etc.).  The properties affected are Eldorado Park, Orlando West, Sebokeng 1 & 2, Vuka Tsoga and Atteridgeville 1 & 2.

    (b)    There was no arrangement or agreement for repayments.

(2)        No, rentals have not increased.  There are allegations that GAPIPA is encouraging tenants to boycott rental payments.  GAPIPA affiliated tenants claim they were promised ownership and are demanding ownership of the parks free of charge.

(3)        No sefa has not set aside a budget to appoint a service provider to assist the tenants of the Gauteng industrial parks to take over ownership and management of the parks. This is dependent on the cooperation and successful conclusion of the proposed sale between sefa and GAPIPA “tenants representatives.”  Currently GAPIPA is reneging to provide relevant information such as details of its membership in the parks, demands for free transfer and so forth. 

(a)       No budget set aside.

(b)       Period dependent on successful conclusion of the sale.

(4)(a)   Service provider not appointed yet, it is envisaged this will be considered on successful conclusion of the sale.