Butterworth residents and tenants fuming over auction of ECDC properties
The offices of the Eastern Cape Development Corporation in Butterworth have been closed since Monday last week as fuming residents and tenants protested over the auctioning of 38 of its properties.
Corporation spokesperson Nobulali Myataza said staff were working remotely while residents picketed to signal their disapproval of the auction. She said additional security has been assigned to the offices, which would reopen once it was safe to do so.
“The SAPS have been informed of the situation and are monitoring it from a public safety perspective,” she said.
Despite the protest, the corporation managed to auction off all the properties at the auction held at the East London Golf Club on Thursday.
The 38 properties comprised 20 vacant residential stands and 18 homes.
She said the corporation introduced a property development and modernisation strategy in 2021 to shape its property portfolio into a modern, well-managed and self-sustaining real estate business. “As part of this strategy, the corporation committed to a multipronged approach to transform its property portfolio into a financially viable enterprise.
“The strategy boasts three pillars, the first entailing the rationalising of the portfolio to improve productivity.
“One of these pillars is the disposal of residential housing stand-alone units and vacant land as a way of using the public property portfolio to transform ownership [patterns] for the people of the Eastern Cape.
“Proceeds from these sales are to be ring-fenced for recapitalisation back into our commercial and industrial property portfolio, thereby giving effect to our property modernisation strategy and economic development. We also plan to use certain of these ring-fenced funds to put towards the upgrade of our residential flat complexes,” Myataza said.
She said the corporation had made repeated calls to existing tenants, even those with significant outstanding rental debt, to pave the way for them to buy the homes within the bounds of its policy and the relevant laws.
“Tied to this, the ECDC further offered an attractive interest write-off dispensation on this unpaid debt.
“Lengthy notice periods were given to tenants to come forward prior to the auction date, which was initially scheduled for September, but was postponed to November 24 to afford the tenants more time to come forward and comply. The properties where the tenants were unable to meet the terms and conditions proceeded to [be auctioned],” Myataza said.
She said now that the auction was over and all the properties sold, it was hoped that the corporation’s offices would be able to reopen soon and residents would stop picketing.