Gauteng Premier Panyaza Lesufi has announced the appointment of an independent forensic firm. The firm will investigate the provincial government’s escalating office rental costs, which amount to over R34 million per month. This move comes after revelations that the Gauteng government is spending billions on leased office space. 41 state-owned buildings stand vacant in Johannesburg and Pretoria’s central business districts.
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Gauteng Spends Over R2 Billion on Office Rentals in Five Years
According to MEC for Infrastructure Development, Jacob Mamabolo, the provincial government has spent more than R2 billion on rented office space over the past five financial years. The current monthly bill sits at R34 million, raising questions about the efficiency and transparency of public expenditure.
This massive expenditure includes R4 million a month for the Premier’s own offices in Marshall Street. It also includes R10.6 million for three separate offices used by the Department of Education on Loveday, Fox, and Sauer Streets. Furthermore, the offices shared by the Departments of Agriculture and Economic Development in Eloff Street cost an additional R7 million each month.
Panyaza Lesufi Acts Amid Pressure to Justify Public Spending
In response to growing public scrutiny, Premier Panyaza Lesufi convened an emergency meeting over the weekend. This meeting was with Mamabolo and the Department of Infrastructure Development’s accounting officer. During the meeting, Lesufi committed to hiring a forensic auditing firm to scrutinize all rental contracts.
“We will appoint an independent forensic firm to assess whether the leasing arrangements provide value for money. We will investigate potential wrongdoing in all contracts,” said Lesufi.
He emphasized that this probe would involve a full, independent review of the value chain. It will include a cost-benefit analysis of continuing these leases versus utilizing or selling the idle government-owned properties.
Vacant State Buildings Deemed “Unsuitable for Use”
Mamabolo has previously defended the underutilization of 41 vacant government buildings. He stating that most of them are not currently suitable for use due to non-compliance with safety regulations. These buildings, located in Johannesburg and Pretoria CBDs, have not been maintained to the standards required for occupancy.
However, the public and oversight bodies have questioned why these buildings have not been refurbished over time. Critics argue that this reflects a failure in long-term planning and infrastructure management.
CBD Revitalisation Project Offers a Long-Term Solution
Premier Panyaza Lesufi reiterated that the unused buildings in the CBDs are part of a larger urban renewal strategy. The provincial government plans to incorporate these buildings into mixed-use development projects. These will include affordable housing, community facilities, and co-working office spaces.
“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,” Lesufi stated.
He added that this transformation will also align with broader goals of revitalising inner-city areas, boosting local economies, and providing safer, more accessible workspaces for government employees and the public.
Ensuring Transparency, Accountability, and Compliance: Panyaza Lesufi’s Approach
Lesufi stressed that the investigation would not only seek value for money but also ensure strict adherence to the Public Finance Management Act (PFMA) and supply chain regulations.
“We want to guarantee due diligence, transparency, and accountability across the board,” the premier said.
The forensic firm will also look into the procurement processes, assess potential irregularities, and recommend disciplinary or legal action if any misconduct is uncovered.
Public Pressure Mounts for Reform
Civil society organisations, taxpayers, and opposition parties have called for urgent reforms in public spending, particularly in how state-owned resources are managed. With Gauteng’s strained budget and growing infrastructure needs in sectors like health, education, and transport, many believe that continued spending on office rentals is unsustainable.
Lesufi’s move to scrutinise and potentially overhaul these contracts is seen as a critical step toward restoring public trust, improving fiscal discipline, and ensuring efficient use of state assets.
A Turning Point for Gauteng’s Property and Fiscal Management
The upcoming forensic audit marks a pivotal moment for Gauteng’s property and financial management. With millions spent each month and dozens of government-owned buildings gathering dust, the investigation promises to uncover inefficiencies, tighten oversight, and drive long-term reform. Whether this initiative will lead to real change remains to be seen, but it undoubtedly sets a new tone for governance under Premier Lesufi’s leadership.
