The government is resorting to a forced sale value model for the 1,593 residential houses in the BCL Mine housing portfolio, as only 12 people have shown interest in purchasing the properties.
Minister of Minerals and Energy, Lefoko Moagi, informed Parliament that the government directed the liquidator of BCL to sell the houses to former and current employees of BCL at the beginning of 2023.
The liquidator engaged independent valuers and land surveyors to determine the value of each property and survey each plot, resulting in a forced sale value.
Moagi revealed that the cumulative forced sale value of the houses is P457,055,983.66. “Following the valuation and surveying exercise, the liquidator issued each employee with an offer letter. The offers were sent in batches as and when the values would be available.”
Despite sending offer letters to employees in batches, only 12 acceptance letters were received by the end of August and September, leaving over 537 people subject to eviction, Moagi told Parliament.
Concerns about the potential impact on families, especially those with children taking exams in October/November, led the government to halt the eviction process on September 27, 2023.
The government decided not only to stop evictions but also to purchase the remaining 1,576 properties in the BCL Housing Portfolio that have not been sold.
Negotiations with the liquidator of BCL are underway to finalize the transaction.
The balance of 1,576 properties includes the 12 houses already sold and an additional 5 houses being sold to individuals who purchased the BCL hospital.