PORTFOLIO COMMITTEE ON PUBLIC WORKS

1. PORTFOLIO COMMITTEEONPUBLIC WORKS PARLIAMENTARY VILLAGES 16 OCTOBER 2007

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

3. 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.

4. 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discussing interim arrangements, such as a governance mechanism and an accommodation allocation policy when the act is repealed.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.

5. 2. Refurbishment of the accommodation units • The status of the refurbishment of the units occupied by Member’s 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

6. 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 Graaff’s 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.

7. 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 Graaff’s Trust and a settlement amount of R110million was agreed upon on the 22 March 2006.

8. 5. Proposed Relocation of MP’s 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 Member’s of Parliament to central Cape Town (2) relocating two other villages into ACACIA Park and maintain it as a central village park.

9. THANK YOU