The lease with the highest value is a five-year deal for alternative office space for the National Treasury that will cost R222 million.
The department of public works and infrastructure (DPWI) has committed R293 million to short- and long-term lease agreements in the last six months.
At an average of R70 million per premises, the leases were for just four properties needed for administrative functions or accommodation for ministers.
Despite the expenditure, Public Works Minister Dean Macpherson said that interventions by his department had seen a “major reduction” in the signing of lease agreements.
R293m on four properties
Macpherson revealed the values of the leases in a written response to a parliamentary question posed by ActionSA’s Malebo Kobe.
The minister’s response outlined the locations and values of the four leases — one in Johannesburg and three in Pretoria.
The property costing the least is a 12-month lease for ministerial accommodation in the capital for R888 000.
DPWI signed a five-year lease for the department of justice and constitutional development costing R49 million.
Also in Pretoria, the National Treasury had a five-year lease approved for “alternative office accommodation” costing R222 million.
In Johannesburg, an 18-month lease for the deeds office at 28 Harrison Street will cost R20 million.
Tightening belts
Without revealing comparative numbers, Macherson said that stricter measures were in place to guard against waste.
“There has to be sufficient and specific justification given in order for requests for leases to be granted, which has saved the department money both in the short term and long term,” Macpherson’s response said.
He added that DPWI was dealing with allegations of corruption in the department’s real estate management services.
“For this reason I requested the Special Investigating Unit to motivate for presidential proclamations to investigate,” Macpherson said.
In August he said that the deputy-director of the department’s real estate management services resigned when asked to answer to some of the allegations.
“The director-general, Sifiso Mdakane, and I are committed to upholding good governance, protecting public resources and ensuring our property portfolio is used for the benefit of all South Africans,” Macpherson said.
NOW READ: Gauteng government reveals R2 billion spent on office rentals in five years
