Gauteng government reveals R2 billion spent on office rentals in five years

Failure to maintain its assets is costing the Gauteng provincial government millions in unnecessary expenditure.

Due to the buildings owned by the provincial government not being fit for purpose, R34 million a month is spent on providing officials with space to work.

While provincial leaders say it is a temporary measure, expenditure over the last five years shows a massive waste of funds while more than 40 government-owned buildings stand empty.

R2.2 billion over five years

Gauteng MEC for infrastructure development Jacob Mamabolo revealed the figures in a written response to a question in the Gauteng provincial legislature.

He explained that there are at least 41 government offices in the province standing empty because they do not meet occupational health and safety standards.

Paid for through the national department of infrastructure development (DID), R2.2 billion was spent in the last five financial years on offices for Gauteng government departments.

In the 2019/20 financial year, the department spent R393 million on offices and a further R398 million in the 2020/21 financial year.

This annual expenditure rose to R490 million in 2021/22 but decreased to R468 million and R458 million for the next two financial years.

The office of Premier Panyaza Lesufi located in Marshall Street costs R4 million a month, while three offices in Loveday, Fox and Sauer Streets used by the department of education cost a combined R10.6 million a month.

Offices shared by the departments of agriculture and economic development in Eloff Street cost a combined R7 million a month.

A table of the departments using rented office space. Graphic: Gauteng provincial government

Properties vandalised

Mamabolo explained that a lack of maintenance was the cause of the deterioration of the 41 properties.

“Insufficient funding for maintenance and refurbishment of government-owned buildings has led to a prolonged period of non-compliance with occupational health and safety (OHS) Standards,” he said.

“DID explored alternative solutions including leasing from third parties to ensure the provision of required office accommodation, thereby fulfilling its mandate.”

The opposition in the province have since tabled a motion in the legislature to compel the administration to fix its buildings.

“Had these buildings been maintained properly, there would be no need to spend millions on rentals that can be used to deliver services,” the DA’s Khathutshelo Rasilingwane said.

“In addition, the Gauteng provincial government is paying millions of rands for security at these buildings, yet they are still being vandalised,” she added.

Revitalisation projects

Of the 41 vacant government offices, 12 are located in the Johannesburg CBD, while the other 29 are in Pretoria.

Mamabolo said refurbishment of the buildings was on the cards as they formed part of a plan to restore the Johannesburg CBD.

“The leasing of office accommodation from private landlords is a temporary solution pending the long-term revitalisation of government-owned buildings through the Gauteng precinct development project.”

As for the properties in Pretoria, Mamabolo said they were earmarked for development by private investors in line with a national project to repurpose government buildings.

“These buildings form part of the assets where DID is concluding an exchange agreement with the department of public works and infrastructure,” the MEC said.

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