CAPE TOWN, Western Cape — A glaring paradox in South African government property leases has sparked intense parliamentary backlash, with lawmakers questioning why the state is funneling billions of rands to private landlords while its own vast portfolio of vacant state-owned buildings falls into disrepair. During a tense oversight session on Wednesday, the Portfolio Committee on Public Works and Infrastructure confronted department officials over the severe financial mismanagement of roughly 88,000 government properties, many of which remain heavily underutilized.
Carol Phiri, Chairperson of the Portfolio Committee on Public Works and Infrastructure, stated that the department’s justifications for this costly imbalance were entirely unsatisfactory. Rather than demonstrating fiscal responsibility, officials offered vague refurbishment timelines that failed to reassure the committee that public funds are being protected. Phiri emphasized that the ongoing reliance on private rentals, while state assets gather dust, signals a troubling lack of seriousness regarding the national budget.
At the center of the controversy is the management of Telkom Towers. Originally acquired from Telkom in good condition, the complex has since deteriorated significantly. Despite absorbing approximately 1 billion rand in state investments, Phiri noted there has been virtually no movement on its refurbishment. Worse still, the vacant site continues to bleed public funds, costing an estimated 6.8 million rand every month simply to maintain basic security and cleaning services.
The financial exposure is further exacerbated by the state’s rental agreements. Phiri highlighted that roughly 500 government leases operate on a month-to-month basis, a precarious arrangement that exposes taxpayers to immense financial risk compared to properly negotiated, long-term contracts. When pressed on solutions, the department proposed spending 4.1 billion rand to renovate just four specific buildings—a figure weighed against a 10.9 billion rand estimate to construct entirely new facilities.
Officials also suggested utilizing Public-Private Partnerships (PPPs) to manage refurbishments, but Phiri dismissed the proposal as deeply unconvincing. She questioned the logic of a model where private entities install low-quality utilities, such as air conditioning units with a three-year lifespan, only to hand the building back to the government in 20 years.
The hearings also laid bare a severe lack of inter-departmental coordination. For example, the South African Police Service (SAPS) has formally notified the department that it no longer wishes to occupy Telkom Towers, citing unacceptable working conditions like poor ventilation. Currently, only the North Tower is partially usable. Meanwhile, the South African Social Security Agency (SASSA) is reportedly struggling to find adequate office space in KwaZulu-Natal, even though an 11-story state-owned building in the province sits almost entirely empty, with only a single floor occupied by the Department of Justice.
Oversight has also been stalled by a delayed forensic investigation into the property portfolio. The committee was scheduled to receive the initial forensic report on Wednesday, but the Minister of Public Works rejected the findings, claiming the document failed to identify specific individuals for accountability. A second forensic firm has since been appointed to launch a new probe. However, Phiri insisted that the committee will not rely solely on the minister’s narrative. They intend to work with Parliament’s legal team to independently review and scrutinize the original report to establish their own factual baseline.
Concluding the session, Phiri issued a stark warning to the executive, urging the minister to move beyond media-friendly promises about rooting out corruption and deliver tangible implementation. If the department fails to repurpose these underutilized buildings and address unapproved or “staged” leases, Phiri indicated the committee may request the Speaker of Parliament to establish a dedicated ad hoc committee to investigate the crisis further.
