79% of Public Works projects delayed costing public R2.9 billion, says Macpherson

Public Works and Infrastructure Minister Dean Macpherson says delayed projects within his department are hampering economic growth.

The minister has been touring the country to assess the department’s work and relayed his findings in parliament on Thursday.  

He rolled off a host of numbers but stressed that each represented a failed opportunity to move the country forward.

R2.9 billon spent with no results

Macpherson identified 206 infrastructure projects undertaken by the department, of which 164 were experiencing delays of some kind.

This 79.6% stagnation rate includes R1.3 billion spent in this financial year on projects that have not been completed, with that number escalating to R2.9 billion over several financial years.

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The most expensive example is the Telkom Towers in Tshwane which has seen R1 billion spent over 10 years. The building was meant to be converted into offices for the police, but remains empty.

In an example from the Eastern Cape, R247 million has been spent on the Sarah Baartman Centre of Remembrance since 2014, yet the project is only at 37% completion with an inflated budget.

“These delays are not just figures in a report; they represent stalled progress, halted economic growth, and deferred services for millions of South Africans.

“These are also crime scenes where individuals have been paid for work they have not completed,” lamented the minister.

Delinquent departments

Macpherson added that the poor financial management flowed both ways, accusing other government departments of not meeting their payment obligations.  

The public works projects are done in conjunction with other departments who play the role of the client, but Macpherson said these departments owed public works R14 billion.

“Client departments often contribute to these delays by withholding payments to contractors, which disrupts project timelines,” the minister said.

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He warned that should departments not make payments promptly, they will be treated like defaulting debtors and risk debt collection measures and evictions.

“By holding client departments accountable, we are addressing a key bottleneck, ensuring that project funding flows efficiently from start to finish,” he said.

Mass blacklisting incoming

To make the department more efficient, effective and transparent, Macpherson aims to implement a host of new measures.

The tender process will be modernised by having audio-visual recordings of tender-based decisions and the enforcement of new tender evaluation regulations.

Additionally, contractors of a verified size and expertise level will be awarded construction projects of matching scale.

Substandard and delayed work will then be met with contractors as well as listed owners and directors being blacklisted from being granted work with the department in future.

“Every measure we implement, from blacklisting to live auditing, is a step towards restoring accountability and ensuring that every project undertaken by this department fulfils its purpose,” Macpherson concluded.

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