Nxesi: Govt property has been mismanaged
The minister says the new PMTE will professionalise the operation and lead to cost savings.
CAPE TOWN - Public Works Minister Thulas Nxesi says a lack of skills means government properties haven't been managed properly.
The minister says the new Property Management Trading Entity (PMTE), which will be set up under his department, will professionalise the operation and lead to cost savings.
Cabinet signed off on the new entity's business plan last week.
Nxesi has been speaking to journalists in Parliament about the plan.
With a market value estimated at more than R350 billion, the government's property portfolio is five times the size of that run by the country's biggest property management company.
But Nxesi says it hasn't been well run.
"It is a fact that it has been mismanaged, lacking the requisite skills in asset management, property development, real estate and facilities management."
The new PMTE is intended to fix that by contracting industry professionals for strategic guidance and by using emerging black estate agents, co-ops and small businesses to do the work.