Gauteng Premier Panyaza Lesufi has hired an independent forensic firm to look into the lease contracts in response to media reports that the provincial government is paying R34-million a month to rent space for government offices while some government-owned buildings remain empty.
In a media statement released on Monday, Gauteng provincial government spokesperson Vuyo Mhaga said Lesufi appointed an independent forensic firm to assess whether the leasing arrangement provides value for money and investigate potential wrongdoing in all the contracts.
This past weekend, media reports surfaced that the provincial government is paying R34-million rent a month to house its 11 head offices in the Johannesburg CBD even though it owns 41 buildings across the province, all of which remain vacant.
The reports further stated that it means the provincial government has been spending more than R400-million a year and about R2.2-billion in the last five years to house its political heads, including the premier and his 10 MECs.
“Gauteng Premier Panyaza Lesufi has noted the recent media reports alleging wasteful expenditure of R34-million per month on leased office space for government offices, while some government-owned buildings stand vacant,” said Mhaga.
“The premier last night [Sunday] summoned the MEC responsible for infrastructure development and the acting accounting officer and received a report from them.
“In response to the department’s briefing, premier Lesufi has decided to take the following steps: appoint an independent forensic firm to assess whether the leasing arrangement provides value for money and investigate potential wrongdoing in all the contracts.”
Entire value chain to be reviewed
He said Lesufi announced that he will engage an independent institution to review the entire value chain, conduct a cost-benefit analysis of owning versus leasing the buildings, and assist the provincial government in optimising or selling vacant properties.
“Premier Lesufi will also explore private-sector partnerships to repurpose underutilised buildings into mixed-use developments, combining affordable housing, government offices, and community spaces, as part of our CBD revitalisation programme.
“This includes prioritising the Gauteng precinct development project, a strategic initiative to revitalise key government precincts.
“This long-term plan will optimise state-owned properties, reduce reliance on leased spaces, and ensure cost-effective, modernised infrastructure for improved public service delivery,” said Mhaga.
Committed to fiscal responsibility
Lesufi said the Gauteng seventh administration remains unwavering in its commitment to fiscal responsibility and the efficient use of public resources.
“We want to ensure strict compliance with the Public Finance Management Act and supply chain regulations while decisively scrutinising all expenditures on leased properties. This process will guarantee due diligence, transparency, and accountability,” Lesufi said.
“Our long-term goal is to minimise reliance on leased office space by maximising the use of existing state-owned assets while ensuring our employees have safe, healthy workspaces that comply with all occupational health and safety standards.”
