ECDC stands by decision to sell off residential property

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 The East Cape Development Corporation maintains that it's receiving large numbers of tenants who want to buy since it announced a bold step to sell its 238 stand-alone houses last December.

This despite media reports about unfairness and favouritism in evictions.

The houses, in Butterworth, Queenstown and Mthatha, form part of the financier's 473 residential properties which have a balance sheet value of R233m.

ECDC CEO Sithembele Mase says the residential properties have been a cash drag with the institution owed about R60m.

Mase adds that a study by Grant Thornton indicated that 82% of ECDC tenants fall in the bracket of medium to high income earners and therefore should be able to buy the houses at market value.

He says they are is still open to negotiation with the tenants and misconduct uncovered on the part of ECDC employees or external parties in the management of its property portfolio will be vigorously dealt with.