LAHORE: The Punjab government is considering to allow under its control the sale of the local government property with the first right of refusal to its existing users (offering them to purchase).

Sources in the Punjab government on Tuesday doubted the motives of the plan. They said the manner in which it was being carried out reflected that the government was going to dole out local government immoveable property.

Sources in the local government department said that the right to sell the local government property through public auction and in a prescribed manner was being introduced through an amendment to the Local Government Act 2013.

The law at present disallows local governments to sell or permanently alienate any of their immoveable property which it says shall be used only for public purposes.

It allows them to lease out their immoveable property through competitive bidding by public auction.

However, the law says that the government may constitute a committee headed by the chief officer of the local government to identify the “encroached or redundant properties” of a local government that may be sold in the prescribed manner with the approval of the government and the funds generated from the sale of such properties shall be kept in a separate account and be used only for purposes of development.

The movable property of a local government which is required to be disposed of shall be sold through competitive bidding by public auction, the law says.

Sources said under the new scheme of things, the government intended to allow the present occupants of local government property to buy it at a rate to be determined through a public auction, but there was no mention of which type of property it would be. The law in its present form at least clarified that this should be encroached or redundant property.

They said the government also intended to limit the lease period. It intends to make it mandatory for the local governments to grant lease of their immoveable property initially for 15 years, and afterwards to a maximum 10 years.

A senior local government official admitted that the proposed amendment did not mention which type of property could be sold out, and initially it appeared that it included all property.

He clarified that the purpose of the amendment was to solely rid of the local government property which was encroached upon in any manner or facing unending litigation. Therefore this should be mentioned to remove any doubts.

“Yes there is also a need to change a provision in the law that the local government properties can only be used for public purpose when we are going to sell them to private people,” he agreed.

Published in Dawn, June 29th, 2016