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Property Charter   Article Date :26 Apr 2005 General summary notes February 2005 THE PROPERTY SECTOR CHARTER – GENERAL SUMMARY NOTES Issued by IEASA for information purposes only. Charter draft is available on the Property Charter website www.propertycharter.co.za Any queries can be directed to: Tumi More - Project Support Mohlaleng Strategy Advisors Tel: 011 797 2040 Direct: 011 797 2023 Fax: 011 797 2132 email: tumi@mohlaleng.com Organisations Participating on the Property Sector Charter § South African Institute of Black Property Practitioners (SAIBPP) § South African Property Owners Association (SAPOA) § Women’s Property Network (WPN) § Estate Agents Affairs Board (EAAB) § South African Black Technical and Allied Career Organisation (SABTACO) § SA Council of Shopping Centres (SACSC) § Institute of Estate Agents of South Africa (IEASA) § South African Institute of Valuers (SAIV) § The Government of the Republic of South Africa (Government led by Department of Public Works) Objectives of the charter · The charter enables the property sector to adopt a proactive strategy to foster and encourage BEE and transformation in ownership, control, skills development, employment equity, procurement and development in underdeveloped areas. The charter aims to: · Bind all stakeholders within the sector to the charter and its scorecard; · Ensure that there is participation of black people, disabled and women in the property industry and in its growth; · Achieve a substantial change in the racial and gender composition of ownership, management and control structures as well as in the skilled and recognized positions of existing and new companies; · Increase the pool of intellectual capital in the sector by focusing on attracting new entrants and continually investing in the skills development and training of existing and new black professionals and managers; · Develop black people and women in strategic and operational leadership; · Increase the number of women, people living with disabilities, workers, co-operatives and the youth in the sector as employees, managers, suppliers and owners of equity; · Promote property development in underdeveloped areas; · Encourage wealth accumulation by black people through collateralisation of properties; · Encourage principles of good corporate governance; · Encourage an increase in the number and expertise of black firms and SMEs providing services and products to the sector; · Enhance entrepreneurial development; · Encourage all government entities to recognize the empowerment objectives of this charter in all its activities/transactions First public release - Property Charter Draft Framework Version One On 1 November 2004, Minister Stella Sigcau announced that property industry stakeholders and the National Department of Public Works (NDPW) had embarked on a process of establishing a transformation charter for the property sector. Earlier in the year professional and business associations within the industry came together to form the “Property Sector Transformation Charter Committee” (PSTCC) in which government, through the NDPW, is represented. The private sector representation is broad-based and includes: the South African Institute of Black Property Practitioners (SAIBPP), the South African Property Owners Association (SAPOA), the Women’s Property Network (WPN), the Estate Agents Affairs Board (EAAB), the South African Black Technical and Allied Career Organisation (SABTACO), the SA Council of Shopping Centres (SACSC) the Institute of Estate Agents of South Africa (IEASA) the SA Institute of Valuers (SAIV) and the SA Facilities Managers Association (SAFMA). Nedlac has been informed of the process and constituency delegates have been requested from organised labour and community. Technical teams have been established to discuss the various elements of the charter and to set targets and qualitative undertakings in each area. The current framework does not include detail in these areas as the charter is in its formative stages. The discussions in the technical teams and contributions from the steering committee have resulted in the Property Charter Draft Framework Version One, which is being released today for public comment. The framework contains a synthesis of the initial views of some of the stakeholders in the Property Sector and is now open for public comment. The intention of the stakeholders is to ensure the widest possible participation and input into the charter. It is the first in a series of drafts that will be released to enable the public to enter the debates until final consensus on an industry wide charter has been reached. To add impetus to representative consultation it is the intention of the stakeholders to table the charter at Nedlac for discussion and to hold a series of mini indabas in various provinces. The property sector transformation charter intends to address amongst other things the following: § Significant numbers of South Africans have never in the history of their families experienced formal property ownership and its wealth creation benefits. This has had a fundamental impact on the economic potential of South Africa and black people in particular. § Despite legislative and policy interventions to eradicate these inequalities, in practice skewed patterns of ownership, participation and benefit remain. § Black people continue to be significantly under-represented in ownership of property. § Administrative, legal and financial constraints restrict the ability of black people, particularly in underdeveloped areas, to participate in the secondary property market. § There is a lack of property development and investment in under-developed areas, perpetuating service inequalities. § The commercially driven activities surrounding property including development, management and sales rests largely in white-owned hands. § Companies in the sector have inadequately addressed employment equity with the result that the sector continues to be under represented in terms of race and gender. § There is little investment in skills development and limited commitment to workplace training. At tertiary education level, property is inadequately supported as a profession, combined with limited appreciation of property as a career. § Preferential procurement has generally not been implemented at all; with few companies being able to demonstrate any progress in increasing spend from targeted suppliers. § Whilst there are a number of small enterprises in the sector, the sector does little to promote the growth of sustainable black enterprises and there is almost no enterprise development support. The steering committee have opted for public consultation because we believe that the success of the charter, and the degree to which it addresses the above challenges, rests on the inclusiveness of its drafting process and on the consequent ability of all stakeholders including business, government, organised labour and community in partnership to address the transformation challenges confronting the sector. Any organisations or interested parties are invited to contact the steering committee through Mohlaleng at fax: 0866150584 or tumi@mohlaleng.com. The framework is available on www.propertycharter.co.za. PRESS RELEASE ON IEASA WEBSITE - & circulated to all members Institute Of Estate Agents joins Property Sector Empowerment Charter Project (12-Nov-2004) The Institute of Estate Agents is joining the Property Sector Transformation Charter Steering Committee, which has been set up to drive the creation of a black economic empowerment charter for the property sector. IEA president Bill Rawson says the sector has lagged behind others in achieving transformation, and it is a good thing that the major roleplayers have at last come together to tackle the problem, instead of working independently as they have been doing. "Committee object CLICK HERE TO RETURN TO THE MAIN NEWS PAGE