By Thapelo Molefe
Gauteng premier Panyaza Lesufi has ordered an independent forensic investigation into the provincial government’s R34 million monthly office lease expenditure amid mounting public outrage over wasteful spending and neglected state-owned buildings.
It follows recent media reports revealing that the Gauteng department of infrastructure development (GDID) spends R34 million every month leasing 11 office buildings in Johannesburg’s central business district.
And at least 41 government-owned properties – 12 in Johannesburg and 29 in Pretoria – remain vacant due to non-compliance with occupational health and safety standards.
In a statement issued on Monday, Lesufi confirmed that he had summoned infrastructure development MEC Jacob Mamabolo and the department’s acting accounting officer for an urgent meeting, during which a preliminary report was presented to him.
Following the briefing, the premier has announced a series of steps to address the situation.
An independent forensic firm will be appointed to assess whether the current leasing arrangements offer value for money and to investigate any potential wrongdoing related to the contracts.
In addition, an independent institution will be engaged to review the entire property value chain, conduct a cost-benefit analysis of owning versus leasing office buildings and propose strategies to optimise or dispose of vacant properties.
The provincial government will also explore private sector partnerships to repurpose underutilised state-owned buildings into mixed-use developments that combine affordable housing, government offices and community spaces, as part of the broader Gauteng Precinct Development project aimed at revitalising key government precincts.
“The Gauteng seventh administration remains unwavering in its commitment to fiscal responsibility and the efficient use of public resources,” said Lesufi.
“We want to ensure strict compliance with the Public Finance Management Act (PFMA) and supply chain regulations while decisively scrutinising all expenditures on leased properties. This process will guarantee due diligence, transparency and accountability.”
The Gauteng government has spent approximately R2.2 billion on office rentals over the past five financial years, with an annual high of R490 million recorded in the 2021/22 financial year.
Notably, the Office of the Premier itself, located on Marshall Street, incurs a monthly rental cost of R4 million.
Meanwhile, the Democratic Alliance (DA) has fiercely criticised the provincial government’s handling of its property portfolio.
DA Gauteng spokesperson for infrastructure development, Khathutshelo Rasilingwane, said the GDID was “wasting taxpayers’ money” while 41 provincial government buildings stood “empty and abandoned” due to non-compliance with occupational health and safety standards.
In a statement issued last week, Rasilingwane said the GDID’s failure to properly maintain public assets has forced a reliance on costly rentals that could otherwise fund vital service delivery.
The DA also revealed that millions of rands was being spent on security for these abandoned buildings, many of which were still being vandalised.
“The DA Gauteng has drafted a motion to be submitted to the Gauteng provincial legislature demanding that the provincial government fix these abandoned offices,” said Rasilingwane.
Lesufi emphasised that the long-term goal was to minimise dependence on leased properties by maximising the use of existing state-owned assets.
“We must ensure our employees have safe, healthy workspaces that comply with all occupational health and safety standards,” he added.
The forensic probe and portfolio review form part of a broader effort by the Gauteng government to overhaul its infrastructure strategy, ensuring a cost-effective and sustainable use of public funds while simultaneously revitalising urban centres.
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