No more private leasing for the state

Posted On Thursday, 02 June 2011 02:00 Published by
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The government, stung by billions spent on leasing buildings, wants all its departments and entities that occupy private properties to relocate to state-owned buildings in the next three years.

By Caiphus Kgosana

The government, stung by billions spent on leasing buildings, wants all its departments and entities that occupy private properties to relocate to state-owned buildings in the next three years.

Public Works Minister Gwen Mahlangu-Nkabinde said during her budget vote speech yesterday that her department had concluded that the government could save billions by moving state departments housed in private properties to government-owned buildings.

"The leasing portfolio is costing the state a lot of money. The department has in the past spent billions in leases and functional accommodation for client departments," she said.

Public Works was planning to build new government buildings and to maintain existing ones to make space for departments that lease private buildings, she said.

"This will also include ensuring the relocation of national departments to state-owned buildings where it is feasible to do so," Mahlangu-Nkabinde said.

Such a move could clip the wings of dodgy building lease agreements such as the controversial attempt to move South African Police Service headquarters to a Pretoria building owned by businessman Roux Shabangu.

The Sunday Times exposed the R500-million lease agreement deal entered into by national police chief Bheki Cele and Shabangu, which would have resulted in police headquarters being relocated to the latter's property at the Sanlam Middestad building in Pretoria.

But Public Protector Thuli Madonsela put the brakes on the deal when she ruled that the contract entered into with Shabangu was "improper and unlawful".

Ironically, Mahlangu- Nkabinde, who signed off on the deal after she was appointed minister, was severely criticised by the Public Protector for authorising the deal.

Mahlangu-Nkabinde acknowledged yesterday that the task of relocating state departments to government-owned buildings could take a while to complete.

"We acknowledge that our lease portfolio will take a while to reduce, but in the interim, the department will continue to find ways to structure its current leases such that the socio-economic goals of the government are realised," she said.

The minister further told MPs that Public Works, in collaboration with the Department of Higher Education and Training, had decided to renovate and convert idle state buildings to provide cheap accommodation to higher education students.

So far, the HG de Witt building in Tshwane is being refurbished and will house 180 students when completed. The department is refurbishing the Pelonomi hospital in Bloemfotein, which will accommodate 700 students when it is ready.

"Through this intervention, the department is looking at alleviating the problem of a lack of decent student accommodation while creating job opportunities," she said.

Mahlangu-Nkabinde promised to lift service delivery after criticism.

"Our maintenance record leaves much room for improvement. This has forced us to reconsider other options which will be rolled out in this fiscal year," she said.

Source: The Times


Publisher: I-Net Bridge
Source: I-Net Bridge

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