Minister of Public Works and Infrastructure, Dean Macpherson has committed his department to reshaping government property management in South Africa.
Image: Supplied
Minister of Public Works and Infrastructure, Dean Macpherson, has disclosed that his department is poised to dispose of over 1,600 government buildings and properties. This revelation comes as part of a broader strategy aimed at reducing the costs associated with leasing properties, a bill that the minister said amounts to more than R500 billion annually.
During his visit to the new R769 million Johannesburg Deeds Office construction site, located in the heart of the city, Macpherson expressed the government's commitment to investing in urban revitalisation programmes while also tackling the issue of dilapidated and hijacked buildings.
He noted that while the department is eager to repair and invest in inner-city areas, it is also identifying assets that do not contribute to its core mission, adding that this is about striking a balance between saving and investing in key programmes and infrastructure.
"Our work is about two things in my view. It is about ensuring that the State saves money on costly leases and puts that money into our own accommodation in our own buildings. It is also about driving inclusive growth and job creation in our inner cities, such as Johannesburg," he said.
His remarks come two weeks after Macpherson authorised court proceedings against three former MK Party Members of Parliament, who have been accused of unlawfully occupying the Parliamentary village properties in Cape Town.
Macpherson stated that while the State has too many buildings, those who illegally occupy government properties should be held to account.
Public Works and Infrastructure Development Minister Dean Macpherson said his department will be seeking to trim down on some of its non-core stock of buildings and properties, while continuing to invest in rehabilitation of government buildings across the country.
Image: Simon Majadibodu/IOL
Current estimates have placed government property ownership at more than 88,000 buildings and 5 million hectares of land, with a recent IOL report indicating that the government is moving ahead with plans to establish a new state-backed property investment mechanism.
"Quite frankly, the State does not need to own the amount of buildings, property, and assets that it does. So, we have also identified at least 1,600 properties for disposal that do not form part of the core of our mission. However, if there are people who are residing in these buildings and properties illegally, we also have to do something about it," he added.
Macpherson said the ambitious Johannesburg Deeds Office project, touted as the first high-rise and government-led project in the city in the last two decades, is currently at 78 percent completion.
"What we want to do is to replicate this project across the country. We have been very clear that our departments, our SOEs, and other entities do not need to be occupying these hugely expensive leases across the country. The country spends R500 billion a year on leases. I would much rather be spending that on a construction project and creating jobs," he said.
Makaziwe Ntuli, speaking on behalf of the Johannesburg Deeds Office, welcomed the commitment that has been made by the department.
"We truly appreciate the minister and the department for the project. Soon enough, we will have our own permanent building to store our records," Ntuli said.
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