Nxesi: Govt wasting millions on vacant properties

Nxesi: Govt wasting millions on vacant properties

2014-07-16 19:05

Cape Town - Millions of rand in taxpayers' money has been paid for government leases with the private sector for unoccupied properties, Public Works Minister Thulas Nxesi announced on Wednesday.

Introducing debate on his department's budget vote, Nxesi said the audit, conducted in collaboration with National Treasury, included a review of 2162 property leases.

"The DPW [Department of Public Works] has been paying rental to the tune of R5m per month for 108 properties that were vacant or unoccupied," Nxesi said.

"The DPW leased accommodation for government-user departments, but 12 properties were occupied by non-government tenants, at a cost of R1m per month."

The department identified almost 600 cases where lease agreements could not be found, resulting in irregular expenditure.

"The size of the actual accommodation of certain leased accommodation occupied by user departments differed from the occupancy as agreed in the lease agreement and paid for by the DPW," Nxesi said.

"The escalation rates of certain leased accommodation differed to the market escalation rates."

This resulted in the department receiving adverse audit findings eight years in a row.

Nxesi gave MPs a progress update on the department's turnaround plan.

"The department has overhauled SCM [Supply Chain Management] processes in the leasing environment and negotiated, with National Treasury, a special dispensation to fast track the re-signing of expired leases," Nxesi said.

"We were able to re-negotiate leases downward in 50% of cases."

Further savings would be made as the majority of property firms government did business with had agreed to a 5.5% ceiling on annual lease increases.

  • Marco West - 2014-07-16 19:22

    Keep it up. If its not stolen its wasted.

      Godfrey Welman - 2014-07-16 19:40

      LOL West...the best is its 'turnaround plan' = we will ensure ONLY Cadres benefit from this.

  • Terrence Schwartz - 2014-07-16 19:23

    And Minister - who is responsible for this may I ask? And what remedial steps are you going to take against those guilty? Where was management?

      Godfrey Welman - 2014-07-16 19:44

      @Terrence...definitely not the Minister or a DG in the Dept. must be the filling clerk....lol

  • Gary Kerwin - 2014-07-16 19:27

    Eish, everything is going fine i see no problems.

  • Laurence Weyers - 2014-07-16 19:35

    Mary jane do you really think some of are so dumn to fall for your obvious scam. Some nigerian crap. You are as dumb as most of our elected officials

  • lacrimosewolf - 2014-07-16 19:46

    Oh yay, in next years misState of the Nation this will be in the good story column. Face it. You have no cooking clue wtf you are supposed to do. Cutting these losses now doesn't bring 20yrs of wanton and profligate expenditure back. 25% DECLINE in housing and no money to provide, let alone catch up. So what will you tell the people next year or in 5 years' time? Sorry you STILL have no houses and your buckets not only still exist but are being emptied less often, but we saved R60 million on land that we refuse to allow to be developed for housing or industry. Cue cheers and dancing and "I love my government". Then right back to hurling faeces and setting fire to things

  • Erna Westdyk - 2014-07-16 19:50

    Surprised? Now you need to find out into whose account these millions are paid into.

  • Russell Sibusiso Xaba - 2014-07-16 19:50

    Mr Mec please seal your mouth&action faster in treating that cancer,cause you sound as if,you have a very solid&detailed information regarding these lease Government properties.

  • George Gibbs - 2014-07-16 20:04

    What a waste of tax payers money - so who is to blame and being held accountable for this waste if money. We pay tax every month, well those who actually do as well as paying tax for services ect... f&@k man when is this bull gona come to an end. This is just the findings for last 8 years imagine the last 20 years....

  • David Mabu - 2014-07-16 20:05

    Can he really talks about wasting?

  • Terrence Schwartz - 2014-07-16 20:34

    @Godfrey - another Guptagate (Waterkloof)??

  • Ben S - 2014-07-16 20:36

    The only acceptable progress here is to get all the wasted money back and see that procedures are in place to prevent a recurrence. Thank you.

  • Bongane Maphanga Quinton - 2014-07-16 20:41

    Stshela senzeni?

  • lacrimosewolf - 2014-07-16 20:42

    Paying for vacant land is the consequence of paying for vacant minds. Keep it up 62%. You're closer to to the year 1652 than you think

  • lloyd.venske - 2014-07-16 21:19

    This is the Nkandla prick, he has zero credibility.

  • Sisie Indola - 2014-07-17 07:39

    Never mind the millions wasted on the ONE property for just one family.

  • willem.louw.16 - 2014-07-17 08:07

    Incompetence + corruption. What a wonderful combination of traits

  • Ria Cook - 2014-07-17 08:33

    What's new?

  • Steven Swart - 2014-07-17 09:38

    This is but the tip of the iceberg...

  • Judy Molo - 2014-07-27 11:50

    Worse in the Eastern Cape

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