Macpherson rejected the report's conclusions because they failed to hold any serving officials accountable.
Image used for illustration. Picture: iStock
Public Works and Infrastructure Minister Dean Macpherson has asked National Treasury for guidance on launching an independent investigation into a controversial R70 million lease agreement for a Pretoria office building that allegedly had no tenant.
The request follows preliminary findings by the Department of Public Works and Infrastructure’s Anti-Corruption and Fraud Awareness Unit, which raised concerns about the procurement and implementation of the lease for a building at 146 Lunnon Road in Pretoria.
According to the department, the Property Management Trading Entity (PMTE) concluded the lease in March 2023 for the then Department of Public Enterprises (DPE) at a cost of R69.6 million over five years.
However, the lease was reportedly signed despite President Cyril Ramaphosa having already announced plans to reconfigure and close the department.
Although the agreement was never enforced and the building was never occupied, the report found that officials later attempted to advance the transaction by seeking to move the National Prosecuting Authority’s Investigating Directorate Against Corruption (IDAC) into the same building.
‘Self-created emergency’
The preliminary report alleges that officials created what was described as a “self-created emergency” to justify accommodating IDAC at the property.
According to the findings, internal supply chain management processes had already identified alternative accommodation for IDAC at a Council for Scientific and Industrial Research (CSIR) property in Brummeria, Pretoria.
However, the submission seeking ministerial approval for the arrangement was allegedly not processed further.
The report concluded that the failure to obtain the minister’s concurrence appeared intentional, creating an urgent need to place IDAC in the Lunnon Road building instead.
Tender process questioned
The report also flagged several concerns about the original tender process.
Officials reportedly recommended on multiple occasions that the tender be cancelled, while the Bid Evaluation Committee twice advised against proceeding with the award.
Despite these concerns, the National Bid Adjudication Committee approved the tender.
The report further noted questions around bidders’ responsiveness, B-BBEE compliance and whether departmental procurement processes and National Treasury prescripts had been properly followed.
Macpherson rejects findings
While welcoming the preliminary investigation, Macpherson said its recommendations did not go far enough.
He rejected the report’s conclusions because they failed to hold any serving officials accountable and instead placed responsibility on a former deputy director-general who has since resigned.
“These damning findings are exactly why an internal preliminary report by the Department is not enough,” Macpherson said.
“We need the National Treasury to provide direction and requirements as to an independent investigation to identify every official involved in this lease agreement, from its award to the later attempt to move IDAC into the building.”
He said all officials who may have “created, approved, enabled or ignored” the situation should be identified and, where necessary, face disciplinary or criminal action.
“These findings speak to the rot we are working to remove from the PMTE’s leasing environment,” Macpherson added.
“We will not allow public funds to be exposed to risk through dysfunction, negligence or abuse.”
