CAPE TOWN, Western Cape — Lawmakers are intensifying their oversight of South African government property leases, raising urgent questions about why the state continues to pay billions of rands to private landlords while a massive portfolio of vacant state-owned buildings sits idle. The glaring contradiction was brought under the microscope in Parliament on Wednesday, as officials faced tough scrutiny over the management of the country’s vast public real estate.
Despite owning approximately 88,000 buildings, various government departments continue to rely heavily on private rentals. Carol Phiri, Chairperson of the Portfolio Committee on Public Works and Infrastructure, expressed deep dissatisfaction with the department’s explanations. According to Phiri, the justifications provided by officials failed to convince the committee that state coffers are being managed prudently, prompting a barrage of follow-up questions regarding the prolonged mismanagement of public assets.
The committee specifically highlighted several high-profile underutilized assets, including Public Works House, an MTN building, and the notoriously problematic Telkom Towers. Originally purchased in good condition from Telkom, the Towers complex has deteriorated significantly and has already absorbed roughly 1 billion rand in state investments with little to no progress on refurbishment. Phiri noted the staggering ongoing costs of the vacant site, revealing that the department spends an estimated 6.8 million rand monthly just on security and cleaning services for the unused complex.
Further compounding the financial strain is the state’s reliance on short-term rental agreements. Phiri pointed out that around 500 government leases are month-to-month contracts, exposing taxpayers to severe financial risks compared to properly negotiated long-term agreements. When the department proposed spending 4.1 billion rand to renovate just four buildings—weighing it against a 10.9 billion rand price tag for new constructions—they also suggested utilizing Public-Private Partnerships (PPPs). However, Phiri dismissed the PPP model as unconvincing, citing concerns over poor-quality utility installations and the illogical premise of returning refurbished buildings to the government after a 20-year lease period.
At the heart of the Telkom Towers saga is a delayed forensic report. The committee was scheduled to receive the findings on Wednesday, but the Minister of Public Works deemed the initial report unsatisfactory because it allegedly failed to identify specific individuals who should be held accountable. Consequently, a second forensic firm has been appointed to launch a new investigation. Phiri emphasized that the committee intends to independently review the *first* report alongside Parliament’s legal team to conduct their own factual analysis rather than relying solely on the minister’s interpretation of public funds.
The hearings also exposed severe coordination failures between state departments. For instance, the South African Police Service (SAPS) has formally stated it no longer wishes to occupy Telkom Towers due to poor conditions, such as inadequate ventilation, leaving only the North Tower partially usable. Meanwhile, the South African Social Security Agency (SASSA) reportedly lacks adequate office space in KwaZulu-Natal, even though there is an 11-story state-owned building in the province where only a single floor is currently occupied by the Department of Justice.
Phiri concluded by calling for a shift from political rhetoric to tangible action. While the minister frequently makes public promises about injecting new management strategies and rooting out corruption, the committee insists that actual implementation remains invisible. The oversight body is now demanding that all underutilized state buildings be immediately repurposed to deliver tangible services to the public, warning that an ad hoc committee could be established to investigate the unapproved and mismanaged leases further if the promised turnaround fails to materialize.
