Controversial sale of BCL residential property starts

 

The BCL liquidation process is taking too long to complete and without doubt getting costly to the taxpayer as the billions spent in trying to save the mine will never be recovered.

The latest coming from the defunct copper mining town is they are starting to enrol the controversial sale of BCL Limited’s residential properties in a move that is likely not to succeed due to numerous reasons including the set reserve prices.

For now, the asking price of the houses which are over 45 years old, with most no longer habitable, it is likely not to be matched by the occupants who remained inside after they lost their employment with BCL.

Equally interesting is that the Liquidator reserves the right at her sole discretion to amend, withdraw from or terminate the disposal of the residential properties at any time.

The residential properties will first be offered to former and current employees of which the good number may be facing governing limitations to offer or be able to obtain a loan from the financier.

At some stage the occupants questioned the criterion used to determine the monthly rentals subsequent to the engagement of a local company BelServest as management of the fleet responsible for collecting rent.

Although Botswana Guardian has name(s) of the local valuing companies that were engaged to value the BCL fleet houses, none of them were willing to shed light let alone confirm on whether they were engaged at any stage or another citing confidential clauses.

A memorandum dated 26th April 2023 referenced 'Our Reference: JSB/gap/M04349' from the BCL Liquidator, Darusha Moodliar addressed to current and former BCL Limited (In Liquidation) employees headlined, 'Re: Sale of BCL Limited’s Residential Properties situate in Selebi Phikwe' reads 'please note that the Liquidator of BCL Limited (In Liquidation) (“BCL”), Darusha Moodliar N.O (the “Liquidator”), is commencing the process of disposal of

BCL’s residential properties. The proposed disposal of the residential properties will be through a structured process.

The residential properties will firstly be offered to former and current employees of BCL (collectively the “employees') with the attendant terms and conditions. The employees will be offered the respective residential property they currently reside in. The employees will be given an option period of 90 days to make a formal offer to the Liquidator to purchase the property in question.

Employees currently occupying shared accommodation will each be furnished with an Offer in respect of the residential property concerned and the Liquidator will accept the most competitive bid.

Each house will have a reserve price and the employee will be required to produce proof of financing from a reputable financial institution. 'Please note that a reputable property Valuer registered with the Real Estate Council under the Real Estate Professionals Act [Cap 61:07] (the “Property Valuer”) has been engaged to conduct valuations on the residential properties in order to determine the reserve price of each property.'

It further cautions that in the event the employee fails to exercise the Offer by the Cut Off Date, the Offer shall lapse without any further reference to the employee. Employees are advised that after the Cut off Date, the Liquidator will sell the properties to a third party in which event the continued occupancy of the properties will be an issue to be resolved between the employees and the new owner.

Employees that have shown interest in acquiring the properties and have produced an acceptable proof of finance by the Cut off Date, will be issued with a sale agreement to facilitate the purchase of residential properties, which will set out the information and terms on which the property will be acquired. On execution of the sale agreement, BCL’s appointed conveyancer will commence with the registration of the property into the names of the employee.

'Please note that all the fees and disbursements of, and incidental to registration shall be payable by the employee. The property purchase price shall be payable against registration of the property and shall be secured by an unconditional bank guarantee procured in favour of BCL.

“As part of the disposal process, the Land Surveyors and Property Valuers will be attending to the residential properties to conduct valuations for purposes of determining the reserve price. Kindly provide them with the necessary support, including access to the property, when required. The BCL housing portfolio is vast; therefore, the valuation process will be rolled out in stages. The resultant effect is that employees will not receive Offers at the same time.'

It is stated that all former employees of BCL and members of the public who are not eligible to participate in the First Stage, on the basis that they do not currently occupy any BCL residential property will have an opportunity to participate in the second stage of the disposal process which will be held through a public auction