Department:Transport and Public Works

File:PPHC FACILITIES

Branch:Public Works

Enquiries:Rene Koeries

Telephone:021 483 6146

Date:20 July 2009

HEAD OF DEPARTMENT: HEALTH

TRANSFER OF PERSONAL PRIMARY HEALTH CARE FACILITIES FROM MUNICIPALITIES TO PROVINCIAL GOVERNMENT WESTERN CAPE.

1. PURPOSE

To advise the Head of Department of Health of the status and progress to date in respect of the transfer of immovable assets from Municipalities in the Non-Metro areas to Provincial Government Western Cape.

2.BACKGROUND AND MOTIVATION

2.1In terms of an agreement between Provincial Minister of Health and the South African Local Government Association (SALGA), operational control of Personal Primary Health Care (PPHC) services provided by Municipalities in the Non-Metro areas transferred to Provincial Department of Health on 1 March 2006. Included in this agreement is the transfer of immovable assets from municipalities to Provincial Government Western Cape (PGWC).The process was started by Property Management in December 2006, whereby Municipalities were asked to forward their Title Deeds of the PPHC facilities to DTPW so that arrangements could be made for these properties to be endorsed and vested with PGWC. However, Department of Transport and Public Works was advised by the State Attorney’s office in April 2007 that the facilities could not be vested in the name of PGWC by way of endorsement but that the transfer of each facility would have to be dealt with individually as the legislation, National Health Act 61 of 2003 did not make provision for the transfer of immovable assets.

2.2Negotiations were then commenced with each municipality in April 2007 the Western Cape. Each Municipality was advised of the clinics that fall within their area of jurisdiction and requests were made for municipalities to agree to transfer their facilities to PGWC. The process that is followed is that these requests are tabled before council for a decision to be made to transfer the facilities to PGWC in terms of the requirements of the Municipal Finance Management Act. Once Council agrees, transfer agreements are drafted and signed by DTPW: Property Management on behalf of Provincial Government Western Cape and sent to Municipalities to also sign and refer to their attorneys for transfer. In many cases meetings had to be held with Municipal officials from the various municipalities as part of the negotiations. Property descriptions had to be verified and site visits conducted to identify free-standing facilities that could be transferred.

3.STATUS REPORT

3.1Consultants, namely, Organisation Development Africa (contractor) and Data Collection Company (sub-contractor) were appointed to attend to the following:

verification of immovable assets;
Property Information to allow Deeds office registration; and
Balance Sheet Information to include into the relevant Provincial asset registers and operating budgets.

The results of this investigation and further investigations and consultation from Department of Health and Department of Transport and Public Works: Property Management has given rise to the following status report:

TOTAL PPHC’S / 172
NUMBER OF LEASE AGREEMENTS TO BE EFFECTED / 56
NUMBER OF TRANSFERS TO BE EFFECTED / 116

4.LEASES CONCLUDED AND NEGOTIATED

4.1Property Management’s Operational Management component is currently engaged in a process of concluding and negotiating lease agreements with the various municipalities. Progress to date is as follows:

CONCLUDED LEASES / 10
LEASES BEING NEGOTIATED / 46

5.TRANSFERS

5.1Letters were sent to all the Non-Metro Municipalities to advise them of the Memorandum of Agreement that was entered into between Department of Health and SALGA which included an agreement for all immovable assets to be transferred to Provincial Government Western Cape and to further request that municipalities provide Property Management with documentation to facilitate the transfer of facilities.The following is the result of these engagements:

MUN / FACILITIES TO TRANSFER / RESPONSE
FROM / COMMENTS
West CoastDistrictMunicipality / Redelinghuys
Elandsbaai
Graafwater
Doringbaai
Ebenhaezer
Klawer
Rietpoort
Molsvlei
Stofkraal
Van Rhynsdorp
Koekenaap
Lutzville / W P Rabbets / Open to negotiations with regard to terms and conditions of transfer of immovable assets. All clauses pertaining to transfer of immovable assets were removed from Memorandum of Agreement.
KnysnaMunicipality / Hornlee
Khayalethu
Witlokasie / S Langlands / No response despite regular follow ups. Transfer agreements drafted and sent to Municipality in July 2008.
Theewaterskloof / Villiersdorp: Willa Clinic
Caledon
Grabouw
Riviersonderend / J van Rhyn / Council has agreed to transfer clinics to PGWC. Agreements signed by both parties in April 2009. Subdivisions being undertaken for Grabouw and Riviersonderend.
CapeWinelandsDistrictMunicipality / Klein Drakenstein Clinic
Soetendal Clinic
Windmeul Clinic – subdivision needed
Nieuwedrift Clinic – subdivision needed
Touwsriver Clinic
Op-die-Berg Clinic
Sandhills clinic / Ms WM Neethling / Transfer agreements drafted and Municipality has indicated that they are willing to transfer. Property descriptions need to be verified.
OudtshoornMunicipality / Bongolethu Clinic
Bridgeton Clinic
De Rust Clinic – mun will attend to survey and registration of clinic as it is currently unsurveyed.
Toekomsrus Clinic / GH Juthe / Still negotiating with mun. Transfer agreements drafted and not accepted by mun. They are enquiring as to whether there is any compensation due to them for transfer of clinics and also in terms of which legislation transfer is proposed
OverbergDistrictMunicipality / Napier clinic
Hawston clinic
Struisbaai Clinic
Greyton Clinic / M Aucamp / Transfer agreements have been drafted and sent to the Municipality. Waiting on their response.
CentralKarooDistrictMunicipality / NW Nortje / Shared facilities only. Leases to be negotiated
BreedeRiver Winelands / Happy Valley Clinic
McGregor Clinic
Ashton Cogmanskloof Clinic
Bergsig Clinic
Zolani Clinic
Nkqubela Clinic / D van Schalkwyk / Municipality in agreement to transfer facilities. Zolani a shared building that needs to be subdivided. Transfer agreements signed thus far forall except Zolani Clinic.
Kannaland / No transfers / No clinics under their control
Matzikama / No transfers / DGI O’Neill / Matzikama have two clinics, namely Vredendal North and Vredendal Central which are shared facilities and cannot be transferred. Leases in place.
BreedeValley / De Doorns
Rawsonville / Transfer agreements drafted and signed
EdenMunicipality / Uniondale
Haarlem Clinic
Dysseldorp Clinic
Oudtshoorn clinic
Touwsranten clinic
Albertinia clinic
Riversdale clinic
Slangrivier clinic
Still bay clinic
Sedgefield clinic / Mun has been sent correspondence and asked to verify clinics in their jurisdiction and also agree to transfer. No response
GeorgeMunicipality / Blanco
Parkdene
Lawaaikamp / Dr M Gratz / Municipality advised Property Management of the following:
Pacaltsdorp, Thembalethu and Rosemoor Clinics are already owned by PGWC.
Conville and George Central clinics may be leased as they are shared facilities
Blanco, Parkdene and Lawaaikamp can be transferred.
MosselbayMunicipality / D’Almeida
Joe slovo
Alma
Friemesheim / A Lichaba / Municipality advised that Hartenbos, Herbertsdale and George clinics be leased as its shared facilities and that the following clinics may be transferred:
Transfer agreements drafted and signed for D’Almeida and Friemesheim and with attorneys for transfer
Alma – subdivision needed
Friemesheim – subdivision needed
Beaufort West / Merweville
Nieuveld Clinic
Kwamanlenkosie
Constitution Street / Ms E Duplessis / Merweville transferred
Nieuveld clinic and Kwa-Mandlenkosie and Constitution Street to be subdivided or leased as these are shared buildings
Prince Albert / No transfers / E September / No clinics under municipal control
Swellendam / Railton Clinic
Barrydale clinic / N Nel / Transfer agreements signed and with attorneys for transfer
Bergriver / Piketberg
Laaiplek / W Wagenaar / Transfer agreements have been signed and referred to attorneys for transfer
Stellenbosch / Aan-het-pad
IdasValley
Kayamandi clinic
Klapmuts
Kylemore clinic
Victoria Street / P Smit / Transfer agreements were sent to the Municipality for their signature and is with their legal services for scrutiny.
Cederberg / Clanwilliam
Citrusdal / Investigating ownership
Saldanha / Langebaan
Hanna Coetzee
Laingville
Paternoster
Saldanha clinic
Vredenburg / E Bell / Transfer agreements have been drafted for all properties except Paternoster. All subdivisions attended to. Transfer in progress. Ownership of Paternoster under investigation
Swartland / Chatsworth
Riebeeck West
Wesbank Clinic
Moorreesburg / I Adams / All properties are currently with attorneys for transfer, except Moorreesburg. Ownership being verified.
Drakenstein / Hospital Street
Newton Clinic
Dalvale clinic
JJ Du Preez
Klein Nederburg
Mbekweni
Patriot Plein
PholaPark / N Bell / Transfer agreements signed for all properties and with attorneys for transfer
Overstrand / No transfers / All shared facilities
Plettenberg / Bitou / Kranshoek
New Horizon Clinic
PlettenbergBay / Site visits held with Mun in October 2008 to discuss transfers. No further progress made
Witzenberg / Nduli Clinic
Gouda Clinic
Tulbagh Clinic / Council agreed to transfer properties in May 2009. transfer agreements being drafted and property descriptions being verified.

3.CHALLENGES

3.1The biggest challenge faced is the lengthy timeframes in the negotiation process. Letters are written to municipalities and numerous follow ups need to be done in order to elicit responses from municipal officials and to get to the final stage of having transfer agreements signed.

3.2There are some municipalities who have not responded at all to our requests for facilities to be transferred.

3.3West CoastDistrictMunicipality has indicated that they are willing to lease all their facilities to PGWC but not transfer any facilities.

3.4GeorgeMunicipality has indicated that they would want PGWC land in exchange for the PPHC facilities owned by their municipality.

3.5 OudtshoornMunicipality has also questioned whether there is applicable legislation the transfer of PPHC facilities need to be done and have raised the question of compensation for facilities in their jurisdiction.

3.FINANCIAL IMPLICATIONS

3.1In terms of the Memorandum of Agreement signed between Department of Health, SALGA and the Non-MetroMunicipalities, the transfer of the PPHC facilities to Provincial Government Western Cape will be at no capital charge. However, the Department of Transport and Public Works will be responsible for payment of transfer costs and all other costs incidental to the transfer of the property such as for subdivisions, in the cases where this will be necessary. The Department of Transport and Public Works is also engaged with municipalities to negotiate rental charges in the cases where facilities that cannot be transferred will be leased.

4.PERSONNEL IMPLICATIONS

None

5.OTHER DEPARTMENTS CONSULTED

5.1Consultations are taking place between the Department of Transport and Public Works: Property Management and the Department of Health to determine status of the immovable assets and extensive efforts were made by the Department of Health to provide information with regards to which clinics could be transferred or leased.

5.2Property Management is also consulting with Municipalities with respect to transfers and rental negotiations of clinics. Property descriptions also have to be

6.CONCLUSION

The transfer of immovable assets is currently an ongoing process with negotiations being undertaken with all non-metro municipalities.

SENIOR MANAGER: PROPERTY DEVELOPMENT

Date:

Comments / Noted

Acting ASSISTANT EXECUTIVE MANAGER: PROPERTY MANAGEMENT

Date:

Comments / Noted

HEAD OF DEPARTMENT

Date:

Comments / Noted

MR. R. CARLISLE

MINISTER OF TRANSPORT AND PUBLIC WORKS.

Date: