Parliament, Wednesday, 25 April 2018 – The Portfolio Committee on Public Enterprises was briefed by the Department of Public Enterprises on the Overvaal Resorts Limited Bill.
The Bill seeks to repeal the Overvaal Resorts Limited Act, 1993, and to retain section 3(2) of the Act. The retention of section 3(2) is to ensure that the state does not lose its rights to servitudes in those resorts mentioned as a result of the repeal.
The Overvaal Resorts Limited Act, 1993, was enacted to establish Overvaal Resorts Limited as a public company in order to hold and manage public resorts on behalf of government. The name of the company, Overvaal Resorts Limited, was later changed to Aventura Limited.
Cabinet took a decision in 2001 to dispose of the 14 resorts. Six unprofitable resorts were sold to other purchasers and another eight were sold to Forever Resorts.
However, difficulties were encountered when the eight resorts were being transferred to Forever Resorts, which prolonged the transfer. Challenges related to incorrect descriptions of the resorts registered at the Deeds Office; land claims; and the resorts registered under government, not the Aventura name, at the date when transfer was supposed to take place.
In an attempt to address the challenges and fast-track the transfer process, an addendum to the sale agreement seeking to make amendments was concluded between government, Aventura and Forever Resorts in 2007. Liquidation was found to be a viable option of disposing of Aventura because of the challenges that kept recurring.
The former minister of Public Enterprises in 2012 passed a special resolution for the liquidation of Aventura. The company was put under liquidation in 2012. In light of the foregoing, the legislation that established Aventura is no longer relevant, hence the repeal of the Act.
Chairperson of the committee Ms Lungi Mnganga-Gcabashe said the committee needs to undertake a public participation process, as it is a constitutional requirement.
ISSUED BY THE PARLIAMENTARY COMMUNICATION SERVICES ON BEHALF OF THE CHAIRPERSON OF THE PORTFOLIO COMMITTEE ON PUBLIC ENTERPRISES, MS LUNGI MNGANGA-GCABASHE
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