Retrenchment looms at BHC
Tsaone Basimanebotlhe | Wednesday January 20, 2016 15:50
The Corporation has hit hard times in recent years as government has been reluctant to approve significant increases to the rentals BHC charges tenants, while the cost of new developments has eaten away at the cash flow. A slowdown in property sales is also understood to have removed the Corporation’s remaining lifeline.
In the 2014 annual report, BHC CEO, Reginald Motswaiso spoke of stagnant rentals that had not been raised since 2004 and the Corporation’s failure to sell 516 houses in Phakalane due to sewerage challenges, as factors driving down profitability.
He said the costs of managing and maintaining rental properties was rising annually, while rentals themselves were unchanged.
“Management began consultations with us last Thursday about the looming retrenchment,” an employee told Mmegi yesterday.
“The BHC has been making money through selling of houses but lately, people are not buying as before. The company has built many houses, which are not yet bought, thus contributing to the loss. Housing rentals are also not making a lot.”
The insider said the Corporation’s ‘Sitting Tenant’ campaign, under which houses were being offered to those already renting out BHC properties, had not met with the success executives had hoped.
In a written response, BHC corporate communications manager, Tebogo Mmokele said the Corporation had embarked on an organisational restructuring exercise to transform into “a new entity with an appropriate business model, human resources, processes and systems”. “The organisation review and restructuring exercise is organisation wide and therefore affects all employees. Organisation review and restructuring exercise is still ongoing and hence we are not at liberty to share details before it is completed,” Mmokele said.