Macpherson says the state should not continue owning thousands of residential properties for government officials.
Public Works and Infrastructure Minister Dean Macpherson. Picture: Gallo Images / Frennie Shivambu
Public Works and Infrastructure Minister Dean Macpherson has ordered an investigation into 6 238 state-owned residential properties allocated to government departments and occupied by government officials, saying properties that are no longer needed should be sold to reduce pressure on the public purse.
The minister has instructed the department’s director-general, Sifiso Mdakane, to conduct a comprehensive investigation into the properties and develop a disposal strategy for those that are not required for legitimate operational purposes.
Mdakane has been given 30 days to submit a report.
Thousands of government-owned homes under review
According to the Department of Public Works and Infrastructure, the state owns 6 238 residential properties allocated to various user departments across South Africa.
KwaZulu-Natal accounts for the largest share, with 3 626 properties, followed by the Western Cape with 566 and Gauteng with 407.
The department also recorded that an estimated R39.6 million was spent from its day-to-day maintenance budget during the 2025-26 financial year. However, available expenditure information relates only to 108 of the 6 238 properties.
Macpherson has requested a comprehensive assessment of all 3 626 properties in KwaZulu-Natal.
“The report must include a complete assessment of the properties situated in KwaZulu-Natal, identifying the User Department to which each property has been allocated, its intended purpose and operational need, the capacity in which the current occupant resides at the property and which properties should be retained, repurposed or disposed of.”
Occupancy and compliance under the spotlight
The investigation will also separately assess properties occupied by officials from the Department of Public Works and Infrastructure.
It will determine whether the same allocation criteria, governance requirements, rental provisions, housing entitlement checks, and tax treatment that apply to other departments have been followed without exception or preferential treatment.
The probe will further examine whether the leasing of state-owned residences complies with the Government Immovable Asset Management Act, the Public Finance Management Act and National Treasury regulations.
Officials will also investigate whether rentals charged are market-related, whether approvals were obtained for any deviations, whether occupants qualify for official accommodation under their employment conditions and whether the correct fringe benefit tax treatment has been applied.
The report must also establish whether user departments have surrendered properties no longer required for service delivery and identify surplus properties that should be repurposed, redeveloped, disposed of or removed from the state’s property portfolio.
Macpherson calls for disposal of unnecessary properties
Macpherson said the state should not continue owning thousands of residential properties for government officials, particularly when many already receive housing-related benefits.
“It is my view that thesState should not own more than 6 000 residential properties for government officials, particularly when many officials already receive housing allowances, subsidies or other housing-related benefits as part of their remuneration packages.”
He said the default position could not be that the state should continue to bear maintenance, rates, and other costs unless there was “a clear and compelling operational reason” to retain a property.
“We need to establish who is occupying each property, the basis on which it was allocated and whether it still serves a legitimate public purpose,” Macpherson said.
He added that underutilised or unnecessary properties should be removed from the state’s portfolio through “a transparent and legally compliant disposal process”.
“Selling properties that the state does not need will reduce unnecessary expenditure, generate value for the public and ensure that government focuses its limited resources on infrastructure and assets that directly support service delivery. This is central to our commitment to use public assets for the public good and build a better South Africa.”
