Members of Parliament have raised questions about the South African Police Service (SAPS) spending millions of rand on private property leases while state-owned assets remain vacant.
During a recent Standing Committee meeting, the Department of Public Works and Infrastructure (DPWI) faced sharp criticism over its failure to compel SAPS to occupy these buildings, a situation MPs have labelled as "serious wastage" and a result of "weak governance."
The ongoing questions about wastage and the significant drain on public finances, which directly impacts South African taxpayers comes after Public Works Minister Dean Macpherson revealed earlier this year that the State currently owns approximately 88,000 buildings and about five million hectares of land.
Chief among the concerns raised by the MPs was the refusal by the SAPS to fully utilise office space at Telkom Towers in Pretoria. The Telkom Tower Complex (TTC) is one of three significant state-owned properties in the Tshwane inner city, alongside the Central Government Offices (CGO) and Public Works House (PWH).
The SAPS, in a letter dated October 29, 2024, informed the Minister of Police that it wanted to surrender the option of occupying the Telkom Towers Complex in favour of an alternative solution. The DPWI said that R1.6 billion is needed to refurbish the complex.
The police department has a portfolio of 69 leased facilities in Pretoria, covering 308,399m² of lettable space and 2,790 parking bays. Of these, 22 are located in the Pretoria CBD and cost R444 million a year to rent according to a presentation by the DPWI.
The SAPS also has the highest number of expired leases, at 197, with an annual value of R761 million.
Reporting to the committee, DPWI director-general Mandla Sithole said nine buildings in the Telkom complex had been vacant since 2024. The department has also said that the buildings need to be refurbished.
“It is important that the client and the department find a way to utilise the buildings, investment money or use other models such as PPPs (public-private partnerships),” he said.
Chief Director: Real Estate Management Services Morris Mabinja said the department manages 2,217 leases for various organs of state, of which 593 are currently running on a month-to-month basis.
“The leases that are going to be expiring in the coming three financial years are quite huge and exceed the acceptable level of month-to-month leases that we have. We had a similar situation in 2016/17, which prompted the department to approach National Treasury. We were granted a special dispensation which allowed us to reduce the number of leases running month-to-month,” he said.
The department has a lease budget of R6.32 billion, while projected expenditure is expected to climb to more than R7.68 billion.
The department has 563 long-term leases expiring in the current financial year, 576 in the following cycle and 405 in the 2028/29 financial year.
ANC MP Mluleki Dlelanga said SAPS spending more than R63 million a month on leases while state-owned buildings remained empty amounted to serious wastage.
MK Party MP Nkosinathi Nxumalo said the failure of SAPS to fully occupy the Telkom Tower building was a result of a lack of political will.
“The department admits that SAPS sent a letter in October 2024 saying they do not want to move into Telkom Towers. They want an alternative solution. This is the core of the failure, in my view. A client department, which is SAPS in this case, is refusing to use state property.
“And the department is not enforcing the policy that a security-class department must be housed in a state-owned building.
“Instead of using its authority, DPWI is begging SAPS to consider supporting the strategy. Again, this is weak governance. The Minister of Police and the Minister of Public Works are still arranging a meeting to discuss this nearly two years after SAPS said no,” he said.
DA MP Bonginkosi Madikizela criticised the delegation led by the DG, saying it had provided the committee with no new information.
“There is a lot that is being said and the truth is there are a lot of vested interests here. And that is why there is no interest in using property owned by the government,” he said.
Madikizela also questioned why ministerial approval was required for leases.
On the department’s proposed strategic intervention, which includes assigning custodian powers and functions to ministers whose departments are constrained by DPWI’s failure to provide lease accommodation, Madikizela questioned whether this would expose executive authorities to additional risks.
“We have 2,217 leases and in your intervention you suggest more power be given to the executive authority and not the accounting officers. Are you not exposing the executive to a risk?” he asked.
ntsikelelo.qoyo@nationalmg.co.za