The Eastern Cape Development Corporation (ECDC) and the Public Assets Community Based Tenants and Owners Association (PACTOA) have announced the conclusion of an agreement that will see ECDC regain control of its Mthatha properties which were illegally occupied by tenants affiliated to PACTOA.
The agreement follows a series of closed talks held between the two parties and has been described as “a breath of fresh air for the Mthatha region which is in dire need of development particularly within the property development sphere.”
“The continued illegal occupation fed into a negative investor perception, which the region could not afford,” read a joint statement issued by the two parties.
“This agreement will also see key properties, such as the Windsor Hotel in Mthatha, for which the ECDC seeks to secure private sector investment for development, released to enable the development process.”
The agreement will see the ECDC gradually taking control of its illegally occupied properties, effective from February 1.
“Whilst the normal legal processes remained in place to evict all those occupying ECDC’s properties illegally, the board and executive team embarked on a strategy to engage PACTOA with the view of finding a solution and addressing the impasse.
“These negotiations were held in good faith and without prejudice to either party,” said ECDC chief executive, Ayanda Wakaba.
“We also acknowledge that some of the people who are occupying our properties might be paying rent to illegal landlords.
“Ideally, the ECDC would not like to shut down the businesses of the final occupants who might be fit to be tenants to the ECDC’s properties.
“To address this matter, the ECDC board has approved a normalisation process for qualifying occupants. Normalisation means that a tenant who is currently occupying ECDC’s properties may approach the ECDC and request to be normalised as a legal tenant,” explained Wakaba.
In agreeing to the handover process, PACTOA has committed to mobilise its members and affiliates to co-operate with the leasehold normalisation process and to desist from future acts of invasion.
“The improvement in governance and leadership of the ECDC, as well as the observed appetite for engagement with stakeholders, gives the association confidence that our erstwhile concerns regarding the poor state of management of state assets will be addressed,” said PACTOA chairperson, Bongani Cikolo.
“The association affirms its desire to see development taking place within Mthatha and the broader OR Tambo Region and is open to engaging with government and government institutions on development matters in the region,” Cikolo added.
