• Healthcare headache

    State healthcare strategies must be more than political posturing, says Mzwandile Jacks.

  • Buzzwords and truths

    Mandi Smallhorne discusses her beef with the terms 'savings' and 'entrepreneurship'.

  • No love lost for SA

    A new biography shows why Elon Musk has little affection for the brutal land where he grew up.

Loading...
See More

Too much spent on state leases - report

Apr 18 2012 08:19
Sapa

Johannesburg - The National Treasury is concerned that R3bn a year spent on leasing properties for state departments Is too high, according to a report on Wednesday.

Treasury deputy director general for public finance Andrew Donaldson told Parliament's appropriations committee on Tuesday that state spending on leases had grown rapidly, Business Day reported.

"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.

Treasury had set up a team to try to reduce the leasing costs.

The department of public works manages the leases.

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.

Spending would be even higher than R3bn if leases for provincial departments were included.

The department of public works haS come under fire for its handling of various leases. This included lease deals for new police headquarters in Pretoria and Durban worth R1.6bn.

Following a report by the Public Protector in October last year which found the leases were unlawful and that they amounted to maladministration, President Jacob Zuma suspended national police commissioner Bheki Cele and dismissed public works minister Gwen Mahlangu-Nkabinde.

 
treasury

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
9 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're Talking About...

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

Eskom’s decision not to give its staff bonuses is:

Previous results · Suggest a vote

Loading...