The mayoral mansion property has a large swimming pool. Picture: Jacques Naude/ANA

Tshwane - Funds generated from the sale of the double-storey Tshwane mayoral mansion will be used to build at least 40 houses for needy residents in South Africa's capital city, Tshwane Mayor Solly Msimanga said on Thursday.

"On the 23rd of November 2017, the mayoral mansion, through an auction was sold for R5.1 million. I am happy to announce that the proceeds made from the mayoral mansion have been earmarked to build 40 RDP houses, inclusive of land and services, for well deserving families in Atteridgeville, Extension 19, where the city is currently servicing stands," said Msimanga.

He was delivering his 2018 State of the Capital Address (SOCA) during a special council sitting.

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"The decision to sell the mayoral house was an easy one. We assessed the true benefits of this double storey four-bedroom house which benefits only one family, and is occasionally used for a couple of meetings with diplomats against providing a roof, property ownership, asset base and dignity to needy families. Common sense prevailed."

Msimanga said the benefits from selling the mansion extended beyond the provision of houses for the 40 families.

"Not only are we providing homes to deserving families but we are also contributing to the creation of work opportunities, as the construction project will contribute to employment in the community and benefit local families."

He said when allocating the houses, the council would give priority to the elderly, people with disabilities and homes headed by children, and in general consider the socio-economic circumstances of the families.

Previously, the Tshwane municipality conceded that the R12 million used by the former ANC administration in Tshwane, led by former mayor Kgosientso Ramokgopa, for renovations that went awry at the mayoral mansion could not be recovered.

A valuation done after the Ramokgopa administration had left office priced the house in Muckleneuk, at only R5 million.

African News Agency/ANA