Home Affairs Expenditure on Leased Buildings and Public Works' Vigilance on Asset Management

In a striking revelation to Parliament, the South African Department of Home Affairs disclosed an expenditure of R343.9 million on leasing private buildings for the 2023/24 financial year, encompassing 214 premises managed by the Department of Public Works and Infrastructure. The hefty leasing fees have raised eyebrows on the utilization of public funding and asset management in the country, initiating broad discussions on cost-effective measures for government operations.

The information came to light through a parliamentary reply to Economic Freedom Fighters (EFF) MP Thapelo Mogale, providing a window into the financial commitments by this key department. The Pretoria head office lease stands out with an annual cost of R40 million, followed by significant expenses at other prominent locations including Cape Town International Airport and the storage facilities in Brits, each at R15 million, and R19 million for the Rosslyn offices.

Acknowledging the need for efficiency, Home Affairs announced an engagement with the National Treasury to explore cost reductions for their primary building in Pretoria. They outlined an in-progress Public-Private Partnership (PPP), highlighting site identification in Salvokop precinct on state land, and procurement of bulk services. A noted unitary payment shortfall from a feasibility study is under review with the Treasury to find a financial middle ground.

In a push for accountability and economic usage of resources, 15 capital projects, introduced to the Presidential Infrastructure Coordinating Council in 2021, are aiming to build dedicated Home Affairs offices engaging private sector involvement. This move is part of a broader government strategy to invest in capital assets on state-owned land.

Parallel to these efforts is the Ministry of Public Works and Infrastructure's recent mission to probe and recover hijacked buildings in urban areas. With over 29,000 buildings in their asset register, the Department initiated Operation Bring Back to reclaim control of roughly 1,260 properties illegally occupied. This action will unveil the condition and legality status of assets across cities and guide metropolitan or municipal decisions.

In a related venture to safeguard public investments, Public Works Minister Dean Macpherson announced an intended independent audit of the erstwhile Telkom Headquarters building procurement. Despite a purchase at R696 million and subsequent R250 million renovation, the property has been unoccupied and compromised for eight years. This announced audit reflects an imperative to rectify and prevent financial losses resulting from mismanaged public properties.

The Department of Home Affairs and the Ministry of Public Works and Infrastructure are at crossroads, balancing between operational leasing costs and the strategic utilization of government assets. Engagements with the National Treasury and independent reviews signal a commitment to prudent financial stewardship, which is fundamental to the integrity and efficacy of public administration.