The uninsured status of Parliament buildings during the fire: A closer look

At least R574 million has been spent to date on rebuilding the Parliament buildings gutted by fire in January 2022.

This, as the buildings were not insured when they went up in flames, Secretary to Parliament Xolile George said on Friday.

“The State does not insure immovable property to a large extent as we know, including movable property. There is no insurance. It covers that by placing funds to rebuild whenever there are issues or replaces those assets,” he said.

George was responding to questions from MPs when implementing agent, the Development Bank of Southern Africa (DBSA) and Parliament briefed the Joint Standing Committee of Financial Management of Parliament on the rebuilding and restoration work.

George also said the National Treasury had issued an instruction note in 2007 that clearly stated departments not to insure immovable properties.

During the meeting, MPs heard that at least R574 million has been spent to date on rebuilding the buildings.

DBSA group executive for infrastructure delivery, Chuene Ramphele, said the cost of restoring and rebuilding the gutted buildings was R4.4 billion.

“We have already spent R574 million. These are reconciled by the National Treasury and Parliament,” Ramphele said.

He told the MPs that the work done at the precinct had entailed five work streams that included enabling a work safe access route, MPs’ offices, rubble removal, asset recovery, and spatial planning and designs, among other things.

Ramphele also said the construction and restoration started after construction companies were appointed following the issuing of a work permit for construction by the Department of Employment and Labour.

He said work was happening underground.

“You may not see things really happening. You see cranes. We started the kind of work happening in the basement,” he said.

The presentation made to the committee showed that work in the New Assembly and Old Assembly would be completed in November 2026 and January 2027, respectively, just in time for the State of the Nation Address. 

Ramphele said they projected to commission, test, and hand over the New Assembly in November 2026.

“At that time, the building will be practically complete at 95%. It can really be used.” 

He stated that the building can be used around January 2027.

Ramphele also said the Old Assembly will be commissioned, tested, and handed over in January 2027.

He said they were monitoring the timelines closely.

“We really work hard with contractors, consultants, Parliament, and everyone involved to make sure these milestones are achieved and get these buildings completed,” Ramphele said.

George echoed the sentiments of MPs that issues of weather could not be used as an excuse for not completing the project unless something unreasonable happened.

However, George said a stream of ground was found under the Old Assembly buildings.

“It is known that the stream has always existed. I think the engineers, like any other, would find answers so that it does not materially impact the progress per set timelines. We will be watching that also to ensure the project is completed as planned,” he said.

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