The Department of Public Works says the rentals being charged at Rygersdal building in Rondebosch, Cape Town, for the different categories of officials, is in keeping with the Ministerial handbook.
However, the department says the Ministerial handbook is currently under review and these rentals are likely to change to reflect the market related value.
The Rygersdal building was recently renovated because it was in a bad state. The department said the building is a State-owned property that has been in the government asset register for years.
“We would like to put into perspective the renovation work done at the property. The Rygersdal building was renovated because it was in a bad state before it was renovated, due to lack of maintenance.
“This upgrading is also in line with the government decision to own properties in a bid to save on rental costs and in turn make money where possible. The department took a decision to reconfigure the block of flats in order to increase the accommodation capacity of the units from 22 to 28. This was done to obviate the need for the usage of hotels, thus saving government a lot of money in the long run.
“It is also important to note that the market for the renovation of the property was tested a number of times through an open tender process, and finally the tender was awarded to the most cost effective bidder for the quality of the specifications needed and it was awarded to a local bidder,” the department said.
Public Works has updated its own norms and standards in the prestige portfolio.
The department will put any surplus of its stock for rental to generate income through the Property Management Trading Entity (PMTE) of the department. – SAnews.gov.za
