South Africa should receive the completed charter for transformation in the property sector by June next year, Public Works Minister Stella Sigcau said yesterday.

Speaking at the launch of the process in Johannesburg, Sigcau said that the charter will be accompanied by a scorecard to gauge the performance of business against set targets and will serve as a strategic framework for effective transformation over the next decade and beyond.

“The industry has come together to enter into discussions to draft a transformation charter that seeks to cultivate an environment that promotes broad-based black economic empowerment (BEE) and brings about meaningful changes in ownership, control, skills development, employment equity, procurement, enterprise development and corporate social investment,” she said.

“The property sector aims to address, among other things, the issue of the lack of development in the former homelands, and black townships.

“Through the Property Sector Transformation Charter Committee (PSTCC) and its secretariat, the industry will ensure the representation of all property-related organisations across racial and gender lines.”

Sigcau emphasised that government has taken the position that the property industry itself must drive transformation and establish its own guidelines.

“The Department of Public Works (DPW) expects the industry to set stretch targets to achieve the charter objectives. However, should this not be achieved, the department would be forced to intervene in whatever way appropriate,” she said.

The Minister added that the government would be contributing to universal access to housing by using some of its property assets for redistribution.

“Over the decades, government has built an enormous fixed property portfolio through the acquisition of land and buildings as part of the public infrastructure to execute public service obligations. These fixed assets include, but are not limited to, government office accommodation, official residences, and functional accommodation such as prisons, courts, police stations, military bases, hospitals, schools, clinics and libraries. Valuation of this property is ongoing but conservative estimates put the value at R120-billion,” she said.

Sigcau confirmed that the numerous property assets of the State-owned enterprises, such as Transnet, will also be taken into account when considering available resources.

An interdepartmental committee has been set up to facilitate an integrated approach to the charter development, and will include representatives from all affected departments, such as the Department of Public Enterprises, the Department of Trade and Industry (DTI), the Department of Land Affairs, and State-owned enterprises.

The DTI will have the final say over whether or not the concluded charter is acceptable and sustainable, Sigcau added.

Seven national bodies are participating in the discussions. These are the South African Institute of Black Property Practitioners, the South African Property Owners Association, the Women's Property Network, the Estate Agency Affairs Board, the South African Black Technical and Allied Career Organisation, the South African Council of Shopping Centres and the Institute of Estate Agents of South Africa.

Organised labour has also been invited to participate in all the structures.

The Minister called on participation by Nedlac in order to find means of involving all other social partners.

“Appropriate structures have reportedly been established to facilitate the widest possible involvement in the discussions and other forums,” she said.

“To this end, the PSTCC brings together all constituencies to debate and finally reach consensus on the charter drafts. Technical teams have also been established to enable in-depth understanding of the various focus areas of black economic empowerment and how they should apply in the context of a property charter.”

Sigcau added that the DPW will insist on community involvement in the construction and development of properties and will be far more vigilant, in the tender processes, for false BEE credentials.

The department will also use its procurement muscle to ensure BEE companies get a slice of the pie.

She said that the DPW had empowerment targets in mind but is encouraging the property sector to come up with its own as the charter development process progresses.

The Minister also hinted at empowerment targets for women in the property transformation process.

“We are looking at a new breed of property owners, but we will make an announcement on that at a later stage,” Sigcau concluded.