The Minister of Public Works and Infrastructure has revealed that the government continues to spend R6 billion annually on private property leases, despite owning significant land and property portfolios. Speaking ahead of a budget vote statement in the National Council of Provinces, the Minister detailed systemic dysfunction, irregular leases, and delayed infrastructure projects within the department.
The Minister emphasized that current operational standards are unsustainable, outlining a commitment to protecting public funds, investigating wrongdoing, and enforcing accountability. It was noted that failed infrastructure projects directly delay service delivery to communities. Furthermore, the Minister condemned the presence of ghost employees and gatekeeping within the Expanded Public Works Programme (EPWP), stating that such practices steal opportunities from unemployed South Africans and undermine the dignity of the programme’s intended beneficiaries.
According to the Minister, the state’s largest property portfolio, which was designed to minimize wasteful expenditure, has instead been plagued by weak systems, inflated leases, and poor contract management. Investigations by the department’s anti-corruption unit have uncovered a pattern of “self-created emergencies.” In these instances, normal planning failures and deliberate delays are allowed to accumulate, creating a false sense of urgency that is subsequently used to bypass standard procurement scrutiny.
The Minister highlighted a specific case involving a 2023 five-year lease valued at nearly R70 million in East London, originally secured for the Department of Public Enterprises. The lease was finalized despite the department being reconfigured and slated for closure, meaning the building was no longer required in its original capacity and remained unoccupied.
The situation escalated in 2025 when the National Prosecuting Authority’s Independent Directorate Against Corruption (IDAC) required new accommodation. Although a procurement process had already been completed to house IDAC at a CSIR property in Pretoria, a preliminary investigation by the anti-corruption and fraud awareness unit revealed that this submission was improperly halted. This failure allegedly manufactured an urgent need to relocate IDAC, resulting in the directorate being placed at 146 London Road—the exact same unoccupied building tied to the defunct Department of Public Enterprises lease.
As a result of these irregularities, the department is now facing accusations of breach of contract, with damages exceeding R15 million. The Minister confirmed that the department is seeking legal advice regarding the matter, warning that such cases expose the state to severe financial liabilities, amounting to fruitless and wasteful, and potentially unlawful, expenditure.
