More than R20million realised in four auctions…

More than R20 million was raised through the auctioning off to the highest bidders of obsolete road construction and accident damaged vehicles previously owned by the Department of Public Works and Roads. While the actual revenue due to the provincial government is yet to be processed, indications are auctions, held in the four districts went ahead as planned and for a change, without incidents.

On the flip side, proceeds yielded from the said actions far exceeded expectations as the department estimated to rake-in between R12million and R15million at best from the four auctions.

Ironically, the best sales of more than R7.2m, were realised at an auction held in smallest district of Dr Kenneth Kauda in Potchefstroom.

In Dr Ruth Segomotsi Mompati (Vyrburg) more than R5.7m was raised, Ngaka Modiri Molema (Mahikeng) more than R5.7m and Bojanala (Rustenburg) was the least, yielding more than R2.3m.
Successful indeed were these auctions, in view of the fact that back in March 2012, the department could only manage one in Bojanala District before the other planned three were aborted because of legal challenges which culminated in court interdicts.

The department appointed a service provider Tirhani Auctioneers in March 2017 to put all obsolete equipment under the hammer in terms of a service level agreement signed with the department.

This is the same service provider doing work for the province of Northern Cape.

Preparation for the above, included the verification and auditing of stock to be auctioned by the department officials.

The Provincial Asset Management team, as a custodian of such assets, was also involved in the process.

Workshops and storage facilities in the four districts have in the past years have been teeming with accident damaged, irreparable and dilapidated heavy machinery and vehicles.

It is expected that the revenue generated. Once properly reconciled -and w auctioneers' commissions due and related costs settled- would be passed on to Provincial Treasury before due processes kick in to allow the department to access the funds.

*Meanwhile, the department is expected to take delivery of eight new motor graders before end of the year to augment the current fleet deployed on our gravel roads.

ENDS

Issued by Communication Directorate
Contact Person: Matshube Mfoloe
Contact Number: 018 388 4451
E-mail:mmfoloe@nwpg.gov.za