NELSON MANDELA BAY

1 NELSON MANDELA BAY. POLICY. Policy and Procedures for the Disposal of Capital Assets by the NMBM and its entities 15 September 2016. FOR INFORMATION. NELSON MANDELA Bay Municipality NMBM POLICY FOR DISPOSAL OF IMMOVABLE ASSETS: VERSION 2014. ADOPTED 15 SEPTEMBER 2016. TITLE OF POLICY NELSON MANDELA Bay Municipality POLICY AND PROCEDURES FOR THE DISPOSAL OF. CAPITAL ASSETS BY THE NMBM AND ITS MUNICIPAL. ENTITIES. BY-LAW OWNER Executive Director: Human Settlements BY-LAW CHAMPION Dawie Welgemoed Tel: 041 506 3215. E-mail: McWilliams and Elliot (Ed Murray). POLICY DRAFTER. DOCUMENT HISTORY: Policy Status Approving Decision Resolution Ref No. Doc No. Pending Title current, Authority date No. date for (. revised, next revision no change, redundant). Policy and Revised Council 30 May Section 14, CF10/0000 30 May 2006. Procedures for 2006 Item 1. the Disposal of Capital Assets by the NMBM. and its Municipal Entities Policy and Current Council 15 Item 32, Page Disposal of 15.

2 Procedures for September 122 Immovable September It was resolved the Disposal of 2016 Capital 2016. that the current Capital Assets Assets policy be by the NMBM. adopted Dated and its subject to it 2014. Municipal being Entities published for information. NELSON MANDELA Bay Municipality NMBM POLICY FOR DISPOSAL OF IMMOVABLE ASSETS: VERSION 2014. ADOPTED 15 SEPTEMBER 2016. NELSON MANDELA BAY. METROPOLITAN MUNICIPALITY. _____. POLICY AND PROCEDURES FOR. THE DISPOSAL OF. IMMOVABLE CAPITAL ASSETS. 2014. INDEX. 1. INTERPRETATION AND DEFINTIIONS. 2. APPLICATION OF THIS POLICY. 3. EXEMPTIONS. 4. CATEGORIES OF APPLICATION. 5. CAPITAL ASSETS NEEDED TO PROVIDE THE MINIMUM LEVEL OF BASIC. MUNICIPAL SERVICES. 6. APPROVALS AND DECISIONS OF COUNCIL. 7. PROCESSES. 8. TRANSPARENCY. 9. EVALUATION. 10. DISQUALIFICATION. 11. RESCISSION OF DECISIONS. 12. DUTIES OF ACCOUNTING OFFICER. 13. UNSOLICTED BIDS. 14. POLICY REPEAL. 15.

3 SCHEDULE 1. 16. SCHEDULE 2. 17. SCHEDULE 3. 18. SCHEDULE 4. 19. SCHEDULE 5. 20. SCHEDULE 6. 21. SCHEDULE 7. 22. SCHEDULE 8. 23. SCHEDULE 9. 24. SCHEDULE 10. 25. SCHEDULE 11. 26. SCHEDULE 12. 27. ANNEXURE "A" LAND EVALUATION COMMITTEE. NELSON MANDELA Bay Municipality NMBM POLICY FOR DISPOSAL OF IMMOVABLE ASSETS: VERSION 2014. ADOPTED 15 SEPTEMBER 2016. Having regard to the provisions of, inter alia, section 14 of the Local Government: Municipal Finance Management Act 56 of 2003, Regulation 40 of the Municipal Supply Chain Management Regulations published by General Notice No. 868 of 2005 and the Municipal Asset Transfer Regulations published by General Notice No. 878 of 2008, the NELSON MANDELA Bay Metropolitan Municipality shall, as from the date of adoption hereof, implement this policy in respect of the sale and transfer of and the granting of rights to use, control or manage its immovable capital assets.

4 1. INTERPRETATION AND DEFINITIONS. The headings of the clauses in this Policy are for the purposes of convenience and reference only and shall not be used in the interpretation of, nor modify, nor amplify the terms of this Policy, nor any clause hereof. Unless a contrary intention clearly appears: The following terms shall have the meanings assigned to them hereunder and cognate expressions shall have corresponding meanings, namely: "Accounting Officer" means the Municipal Manager of the Municipality;. "Act" means the Local Government: Municipality Finance Management Act 56 of 2003 and the Regulations promulgated thereunder;. "Basic Municipal Service" means a municipal service that is necessary to ensure an acceptable and reasonable quality of life and which, if not provided, will endanger public health or safety or the environment;. "Capital Asset" for the purposes of this Policy, means any immovable property such as land, property or buildings owned by the Municipality.

5 NELSON MANDELA Bay Municipality NMBM POLICY FOR DISPOSAL OF IMMOVABLE ASSETS: VERSION 2014. ADOPTED 15 SEPTEMBER 2016. "Council" means the full Council of the Municipality;. "Encumbrance" in relation to a Capital Asset, means a right to the Capital Asset that is held by a third party that limits the owners use of the asset;. "Exempted Capital Asset" means a Capital Asset which exempted by Section 14(6) of the Act from the other provisions of that section;. "Fair Market Value" in relation to a Capital Asset, means the value at which a knowledgeable willing buyer would buy and a knowledgeable willing Seller would sell the Capital Asset in an arm's length transaction which, for the purposes of this Policy, shall be determined by a Registered Valuer;. "High Value" in relation to a Capital Asset, means that the Fair Market Value of the Capital Asset exceeds any of the following amounts: R50 Million;. One per cent of the total value of all capital assets of the Municipality as determined from the latest available audited financial statements of the Municipality; or NELSON MANDELA Bay Municipality NMBM POLICY FOR DISPOSAL OF IMMOVABLE ASSETS: VERSION 2014.

6 ADOPTED 15 SEPTEMBER 2016. An amount determined by resolution of the Council which is less than or ;. "Land Evaluation Committee"means the Land Evaluation Committee established by the Municipality to evaluate tenders, auctions, expressions of interest or other bids and objections in respect of the sale and transfer of and the granting of rights to use, control or manage immovable Capital Assets of the Municipality;. "Long Term" means a period of longer than 3 (three). years;. "MSA" means the Local Government: Municipal Systems Act 32 of 2000;. "Municipality" means the NELSON MANDELA Bay Metropolitan Municipality, a Category A. Municipality established by Part 2 of Schedule 1 of Notice 85 in the Eastern Cape Provincial Gazette No. 654 on 27 September 2000 promulgated in terms of Section 12(1). of the Local Government: Municipal Structures Act 117 of 1998, for the municipal area described in such Notice;. "Municipal Manager" means the person appointed by the Municipality in terms of Section 82(1)(a) or (b) of the Local Government: Municipal Structures Act 117 of 1998.

7 NELSON MANDELA Bay Municipality NMBM POLICY FOR DISPOSAL OF IMMOVABLE ASSETS: VERSION 2014. ADOPTED 15 SEPTEMBER 2016. "Municipal Service" means a service that the Municipality in terms of its powers and functions provides or may provide to or for the benefit of the local community irrespective of whether: such a service is provided or to be provided by the Municipality through and internal mechanism contemplated in Section 76 of the MSA or by engaging an external mechanism contemplated in Section 76 of the said Act; and fees, charges or tariffs are levied in respect of such a service or not. "Non-Exempted Capital Asset" means a Capital Asset which is not exempted by Section 14(6) of the Act from the other provisions of that Section;. "Organ of State' means: a national department or national public entity;. a provincial department or provincial public entity;. a municipality or municipal entity; or NELSON MANDELA Bay Municipality NMBM POLICY FOR DISPOSAL OF IMMOVABLE ASSETS: VERSION 2014.

8 ADOPTED 15 SEPTEMBER 2016. any other organ of state within the meaning assigned to "Organ of State" in Section 239 of the Constitution. "Private Sector Party" means a person who is not an Organ of State;. "Registered Valuer" means a person contemplated in the Property Valuers Profession Act No. 47 of 2000;. "Right to Use, Control or Manage" in relation to a Capital Asset, means a right to use, control or manage the Capital Asset for a period exceeding one (1) calendar month without ceding legal ownership in the Asset which, for the purposes of this Policy, shall include a Lease and servitude;. "Transfer" in relation to a Capital Asset, means a transfer of ownership in the Capital Asset as a result of a sale or other transaction;. Any reference to an enactment is to that enactment as at the date of adoption of this Policy and as amended or re-enacted from time to time. 2. APPLICATION OF THIS POLICY. Subject to clauses 3 and 4, this Policy applies to: The sale and Transfer of Capital Assets by the Municipality; and NELSON MANDELA Bay Municipality NMBM POLICY FOR DISPOSAL OF IMMOVABLE ASSETS: VERSION 2014.

9 ADOPTED 15 SEPTEMBER 2016. The granting by the Municipality of the Rights to Use, Control or Manage Capital Assets. 3. EXEMPTIONS. This Policy shall not be read as permitting the sale and Transfer of Non-Exempted Capital Assets, needed to provide the minimum level of Basic Municipal Services. This Policy does not apply to the sale and Transfer of Non-Exempted Capital Assets in terms of Public-Private Partnership Agreements referred to in Section 120 of the Act and the Municipal Public-Private Partnership Regulations published by Government Notice No. R309 of 2005. This Policy does not apply to the sale and Transfer of housing on municipal land and the Transfer of that municipal land for the poor to beneficiaries of such housing. This Policy does not apply to the granting by the Municipality of Rights to Use, Control or Manage Capital Assets in terms of Public-Private Partnership Agreements referred to in Section 120 of the Act and the Municipal Public-Private Partnership Regulations published by Government Notice No.

10 R309 of 2005. This Policy does not apply to the granting by the Municipality of Rights to Use, Control or Manage municipal land for housing for the poor to beneficiaries of such housing. 4. CATEGORIES OF APPLICATION. Schedule 1 of this Policy shall be applied in respect of the sale and Transfer of Non- Exempted Capital Assets having a High Value to an Organ of State or to a Private Sector Party. Schedule 2 of this Policy shall be applied in respect of the sale and Transfer of Non- Exempted Capital Assets not having a High Value to an Organ of State or to a Private Sector Party. NELSON MANDELA Bay Municipality NMBM POLICY FOR DISPOSAL OF IMMOVABLE ASSETS: VERSION 2014. ADOPTED 15 SEPTEMBER 2016. Schedule 3 of this Policy shall be applied in respect of the sale and Transfer of Non- Exempted Capital Assets having a High Value to a Private Sector Party appointed as a service provider through a competitive bidding process in accordance with Chapter 8 of the MSA.