The National Treasury is concerned that R3 billion a year spent on leasing properties for state departments was too high, according to a recent parliamentary report. In fact, spending would be even higher than R3 billion, if leases for provincial departments were included.
Treasury deputy director-general for public finance Andrew Donaldson recently told Parliament's appropriations committee that state spending on leases had grown rapidly.
"That is a trend we would like to reverse. We would like a situation where we are spending more on investment and maintenance of government accommodation. We want to see this balance improved," he said.
Finance Minister Pravin Gordhan and Public Works Minister Thulas Nxesi had agreed "to undertake a joint review of the validity and cost-effectiveness of all government property leases", Donaldson reportedly said.
The department of public works had come under fire for its handling of various leases. This included the much maligned lease deals to the value of R1.6 billion for new police headquarters in Pretoria and Durban.
Publisher: eProp
Source: PAC/sapa
