The Government approved an emergency Wednesday allowing the sale of 733 buildings in public auctions in which public officials may participate, unless they have debts to the RA-APPS or are in any litigation with the institution.
The starting price for government buildings up for auction will be set by expert appraisers, the Government said.
RA-APPS will not be selling headquarters of public institutions, political parties, diplomatic residences, embassy headquarters or residences of Romania’s former heads of state.
According to the 2012 state budget draft, the Government hopes to get 706 million lei (EUR164 million) next year from the sale of state-owned buildings managed by RA-APPS, according to the 2012 state budget draft ompared with the RON1.8 million it estimates it will earn this year.
RA-APPS is the administrator of residences and other buildings used by public institutions, such as the Parliament, Government, Presidency, Constitutional Court and diplomatic missions.
Government spokeswoman Ioana Muntean said a few months ago that the buildings would be sold through an open auction, for no less than the market price, as determined by an independent evaluator.
RA-APPS is in charge of around 650 government residences and offices, more than 75 villas and over 250 hectares of land, inherited from the former state apparatus of the Communist Party and now occupied by current or former dignitaries, or even their relatives.
In addition, the authority also manages dozens of commercial areas, farms and tourist units, of which the Triumf hotel in Bucharest, the Mara hotel in Sinaia, Clubul Floreasca, the Scrovistea complex and the Palat Snagov complex are among the most valuable.
These properties, used by public institutions, embassies or political parties, are worth only EUR226 million by the state’s reckoning, which is based on 2004 prices, far below their current market value.
Legislative gaps, unclear rules and political interests nevertheless allow many of the buildings under RA-APPS’ management to be occupied by former officials, who no longer hold the position through which they received the residence, or even by their relatives. The courts issue as few as two rulings per year in such cases, because of sluggish procedures.
The former officials’ refusal to leave these government buildings is explained by the large gap between their rent and the rent charged for similar properties on the real estate market.
RA-APPS is currently involved in several litigations to recover about EUR1 million in unpaid rents.