Parliament, Thursday, 13 August2026 – the Portfolio Committee on Public Works and Infrastructure has raised concerns about the continued expenditure of billions of rands on privately leased government accommodation, despite the availability of vacant and underutilised state-owned buildings.
The Department of Public Works and Infrastructure (DPWI) appeared before the committee on Wednesday to brief Members on the underutilisation of Telkom Towers and other state-owned buildings, as well as government’s continued reliance on private leases.
Members heard that the DPWI manages 2 217 active private leases, of which 593 are on month-to-month arrangements. The committee said the scale of private leasing leaves the department exposed to costly and potentially wasteful rental arrangements and underlines the need for a clearer strategy on the use of the state’s own property portfolio.
Members expressed concern that private landlords continue to benefit from substantial government rental payments, while state-owned properties remain vacant or underutilised, and that policies intended to guide accommodation for client departments have not always been effectively implemented.
The committee highlighted Telkom Towers as a particular concern, noting the substantial public expenditure already associated with the project despite limited progress towards its full occupation and use by the South African Police Service (SAPS).
The department told Members that the Minister of Police and the Minister of Public Works and Infrastructure were arranging a meeting to discuss SAPS’s occupation of Telkom Towers.
The committee noted that this required urgent resolution, particularly in light of SAPS's prior indication that it did not intend to occupy the building. Members said the government could not continue to commit substantial public resources to properties without clarity on whether client departments intended to use them, and on what alternative plans would be implemented where they did not.
The committee further acknowledged that some DPWI initiatives are intended to address the accommodation needs of strategic government institutions. However, it said the department requires an overarching strategy and clear implementation plan for vacant and underutilised state-owned properties if government is to reduce its dependence on expensive private leases. Such a strategy should demonstrate how suitable state properties will be rehabilitated and returned to productive use, how buildings no longer required will be addressed, and how future leasing decisions will align with the long-term management of the state’s property portfolio.
Members also sought clarity on whether the Minister of Public Works and Infrastructure, Mr Dean Macpherson, is using state-owned accommodation. The committee raised concern about reports concerning the use of alternative accommodation, including hotels. It said such arrangements should be assessed against the need to protect public finances and maximise the use of existing government assets. The committee also questioned the apparent contradiction between the department’s stated shortage of suitable accommodation for political office-bearers and plans to dispose of hundreds of state properties, including properties situated in prime areas.
The committee has requested a full breakdown of accommodation arrangements for Ministers and Deputy Ministers in Gauteng, including the associated costs. It has also requested that the department provide its proposed public-private partnership plan, including details of how the model will be structured, which assets or projects it is intended to cover and its expected impact on the use of public resources.
The committee stressed the need for a coherent property-management strategy that provides Parliament with a clear picture of which properties are occupied, vacant, underutilised, earmarked for refurbishment or intended for disposal. It also called for greater accountability, prudent use of public resources and urgent action to ensure that government accommodation decisions serve the public interest.
As part of strengthening oversight, the committee recommended that government leases become a standing agenda item at its weekly meetings. This will allow members to monitor the number of leases approved by the Minister and track progress on the 364 leases that remain pending.
ISSUED BY THE PARLIAMENTARY COMMUNICATION SERVICES ON BEHALF OF THE CHAIRPERSON OF THE PORTFOLIO COMMITTEE ON PUBLIC WORKS AND INFRASTRUCTURE, MS CAROL PHIRI.
For media enquiries or interviews with the committee Chairperson, please contact:
Name: Jabulani Majozi (Mr)
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E-mail: jamajozi@parliament.gov.za
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