Sunday, 15 September 2002
How was the valuation of R440 000 for Erf 1432 calculated?
In January 2001, the Department of Public Works (DPW) cmmissioned an independent valuer (registered with the South African Council for Valuers) to assess the open market value of the residence. The valuer used the 'comparable sales valuation method' and assessed the open market value of the property to be R440 000. The assessment was submitted to the Land Affairs Board (a statutory body established in terms of the Land Affairs Act, 1987 to advise government on the value of fixed property and rights therein). In February 2001, the Board concurred with the findings of the valuer and set the open market value of the property at R440 000.
Property values in the Nelson Mandela Metropolitan area have lately shown a substantial increase, especially following the confirmation of the Coega Project.
On what grounds was it decided that the sale of Erf 1432 should be exempt from public tender?
The late Mr. Govan Mbeki was already in occupation of the property for a considerable period of time in terms of a formal lease agreement at a market related rental. The lease agreement was concluded with Mr. Mbeki at a time when he was the Deputy Chairperson of the NCOP.
The Minister of Public Works is authorised to dispose of State-owned residences through an out of hand sale, at open market value, to public servants who are in legitimate occupation at the time of the disposal. Mr. Govan Mbeki occupied the house in terms of a valid lease agreement while he was employed as the Deputy Chairperson of NCOP.
The Minister approved the out of hand sale to Mr. Govan Mbeki.
It is not uncommon for DPW (having regard for extenuating circumstances) to conclude out of hand sales, at open market value. The structural design and the location of the residence were appropriate, given the state of health and the age of Mr. Govan Mbeki.
Why is Ms Mbeki now attempting to sell Erf 1432, particularly in view of the fact that her mother-in-law, Epainette Tanari Mbeki, has been ceded the Usufruct of the property?
Ms Zanele Mbeki decided to reconsider ownership of the property due to the fact that Ms Epainette Mbeki preferred permanently to relocate to her rural village. This meant that the house would remain unoccupied for long periods even if it were utilised when Ms Epainette Mbeki and family members visited Mr. Mbeki's grave.
Ms Zanele Mbeki did not wish to rent out the property and thus act as a landlord. She thus enquired about the possibility of sale of the property, and an estate agent was instructed to process the matter.
In view of the usufruct provision in the title deed, Ms Zanele Mbeki also consulted the DPW with a view to re-selling the house to the State.
It has been agreed that the house would be resold to DPW at the original purchase price plus the costs of any improvements and administrative costs.
Why was Erf 1432 never transferred into the ownership of Govan Mbeki as had been arranged previously in consultation with the Land Affairs Minister Thoko Didiza?
Following a request by Mr. Govan Mbeki to acquire the residence, a valuation had to be conducted as elaborated above. Approval for the out of hand sale was granted in July 2001. An agreement of sale was concluded, but Mr. Mbeki died before the property could be transferred into his name.
In circumstances where the buyer of a property passes away before a transaction is completed, the deceased's estate has the option to proceed with the transaction, or to propose alternative arrangements.
The representatives of Mr. Govan Mbeki's estate decided that the sale should be finalised with Ms Zanele Mbeki, giving effect to Mr. Govan Mbeki's wishes.
Why was Erf 1432 transferred into Ms Zanele Mbeki's maiden name (Dlamini), and not into her married name?
Ms Zanele Mbeki's own preference is that, in personal commercial transactions which do not involve President Thabo Mbeki - and to maintain a distance between these and the family's public position - her maiden name be used.
Ms Zanele Mbeki uses her maiden name for most of her private transactions, a right available to married women in South Africa.
Issued by the National Department of Public Works