Some important and essential changes were made in the Limpopo Provincial Government by the cabinet’s recent announcement and a new administration consisting of five departments has been invited by the South African Property Owners Association (SAPOA).
These five provisional government department would include education, treasury, public works, health and roads and transport which will be placed under section 100 (1) (b) of the Constitution since December 5, 2011 in order to prevent bankruptcy.
SAPOA responded positively upon this announcement that it will start handing over these five departments of Limpopo to the province’s new premier, Stanley Mathabatha and his new executive.
Upon this Neil Gopal- the CEO of SAPOA said that “We are pleased with the undergoing changes that Limpopo is doing, but we still find the reported theft and wastage with a shocking amount of worth R2 billion incurred due to previous administration extremely concerning and unacceptable”.
Though the national government team took over the administration of the provincial departments two years ago, their ability to provide services and pay salaries was under threat.
At the end of July 2013, Limpopo was found achieving R3.3 billion credit balance, mostly due to the proper and correct measures taken by the national government during its intervention. Cabinet agreed on the further investigation steps to be taken to know if any more irregularities are still existing in the ongoing procedure or not.
Gopal further added that “We hope this new procedure allows the province to sustain in the nation and take proper steps further in the regards to the employment of personal, tender administration and security of taxpayers money.” But the problem that taxpayers and businesses has already faced are immeasurable and will take a long time to overcome.”
SAPOA is analyzing several property issues that damaging the commercial and industrial sector in Limpopo province.
“Ongoing challenge is affecting negatively the business community, not allowing important funds to reach the municipal treasury, creating unemployment and preventing the economic development by illegal use of land. This illegal use of land is rather a high risk for investors. Municipalities also lose their income rates”- said by Gopal.
“If the municipality increases the rates by 40% it will increase burden on the legal businesses. Instead of this they should investigate the illegal land use and pay serious attention against the illegal use.”
Gopal said that he also noted that the local authority services in the province are not sufficient for the increasing rates and the tax charged. This will impact the property sector leading the operating costs as high as 40% which is not a proper way to attract the investors and may lead to increased unemployment.
Gopal concluded his discussion by adding that the increasing electricity tariffs specially are affecting the sustainability of businesses and the ability to keep tenants in properties, along with the Small, Medium and Micro Enterprise (SMME) sector affected worstly.
However SAPOA is conducting a local meeting with the local authority for Polokwane, the capital city of the province to discuss the issues which are impacting the property market and their desire to work closer with the provincial and local government.
