Municipal asset sales rules tightened

He was responding to concerns raised by National Democratic Convention MP Gavin Woods at a joint sitting of Parliament’s Finance, Minerals and Energy and Provincial and Local Government Portfolio Committees to consider the draft regulation published in the Government Gazette last month. The regulations offer a framework for the transfer of capital assets or their usufruct to another municipality, municipal entity or to a national or provincial organ of state. The regulations will be vital for creation of regional electricity distributions, which are intended to take over reticulation from municipalities. Pillay said he expected the final regulations to be issued towards the end of next month after consultations and consideration of all comments. However, Woods raised two concerns – that town councils be fully briefed about transfers when asked to approve them; and that the assets be properly valued to ensure that corrupt officials did not seek to get kickbacks for selling assets below their true value. Full Business Day report