15 Aug 2016

The Assistant Minister of Local Government and Rural Development, Mr Frans Van Der Westhuizen, has told Parliament that Gaborone City Council (GCC) entered into a build, operate and transfer agreement with Market Development Company (MDC) for plots 11, 12, 13 and 14 at station plaza.

He said the 25-year agreement commenced on December 13, 2002 and explained that the initial contract fee was P20 000 per month at 10 per cent yearly escalation.

Therefore, the monthly fee now stood at P29 282.

He said the total amount paid by MDC to council in the financial year 2015/16 was P327 426.00.

Mr Van Der Westhuizen stated that the Local Government Act of 2012 classifies provision of market stalls and factory shells under Schedule 4 (sections  44 (i) (b) and (63) under which services for which user fees are set by resolution of council.

The Act therefore, he said confers the powers to determine and set rentals for the 191 market stalls and factory shells upon Gaborone City Council.

He said rentals were set through the standard tariff determination model which include factors like size, location and proposed use.

He, however, said in response to challenges surrounding management of market stalls council has resolved to review management processes for all market stalls with the aim of developing a strategy that would define allocation strategies, rental determination model, rental collection strategy, maintenance plans and the general management plan for market stalls and factory shells.

Mr Van Der Westhuizen  said the exercise is expected to be completed by December 2016.

The Member of Parliament for Gaborone North Mr Haskins Nkaigwa had wanted to know how much income does Gaborone City Council get from Market Development Company at the Gaborone Station.

Mr Nkaigwa also wanted the minister to state the role of the GCC in determining stalls rentals at the markets and asked  if the minister was aware that the rentals are high and most Batswana companies have collapsed. ENDS