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The Circular numbered 2012/15 published in the Official Gazette on 16 April 2012 (“Circular”) stipulates “with respect to immovable properties owned by or subject to disposal by public institutions and organizations (excluding Municipalities and special provincial administrations) or companies where fifty percent of its shares are held by public institutions and organizations, any acts of disposal such as sale, rent, easement, barter, assignment, transfer etc. of such immovable properties either to public institutions and organizations, foundations, associations or companies of such entities or any natural or legal persons shall be subject to prior approval shall from the Prime Ministry.”
Pursuant to the Circular with regards to state owned immovable property the Prime Ministry’s approval must be obtained prior to any kind of transaction which is to the benefit of third parties. Despite the Circular being very brief its scope and application is extensive. Its scope is so extensive that transactions that are subject to approval do not only apply to those that benefit natural persons but also apply to disposals that are beneficial to public organisations.
Virtually, all state owned immovable property before the “bird even leaves the nest” shall be subject to prior approval from the Prime Ministry. In practice as public officials are not prepared to bear any responsibility they have applied the Circular strictly and to the letter, so that it has surpassed its real objective and no flexibility has been allowed in its application.