Taxpayers have coughed up more than R150 million to secure and pay for the rates and services of more than 10 000 unoccupied state properties across the country between April and November this year.
“There are 10 188 unoccupied state properties as at 22 November 2024. The expenditure from April 2024 to date is R150 596 923 on security, rates, municipal services and day-to-day maintenance,” said Public Works and Infrastructure Minister Dean Macpherson.
He was responding to parliamentary questions from MK Party MP Sanele Mvali.
Asked about plans to utilise or dispose of unoccupied state properties, Macpherson said the department has developed an asset optimisation strategy that was intended to ensure immovable state-owned properties were used for public good.
The plan entailed the use of state properties through collaboration with the private sector to develop office space and functional accommodation for the user departments.
It also envisaged, through partnership with the private sector, to refurbish, renovate, upgrade and repair unutilised buildings for use by the department.
“The parties shall enter into a lease concession which will be for a duration of 25 years, where upon expiry, the facility will be transferred to the ownership of government,” Macpherson said.
Meanwhile, the department announced on Wednesday that it has released 24 state-owned properties located across South Africa for requests for proposals from public and private entities.
It said members of the public and private entities have until March 13, 2025 to make proposals on how the properties could be utilised to ensure that they contribute to the public good, help ignite job creation and add value to their communities.
Macpherson said the requests for proposals will be evaluated to consider which were feasible before moving ahead with the process which may include long-term leases, public-private partnerships or selling the assets.
“This marks a major milestone for the department in the seventh administration where we will make good on our promise to invite private and public role-players on this scale to bring us proposals on how these properties can be utilized towards truly benefitting the people of South Africa, either through repurposing or redevelopment.
“This means that, where feasible, the state may partner with the private sector to ensure that properties contribute to economic growth and job creation.
“We believe these properties will attract significant investment and jobs through their redevelopment,” he said.
Macpherson said they hoped to use the properties as an example of what can be achieved with underutilised state-owned properties country-wide.
“With this programme, the era of state-owned buildings standing empty, attracting crime to communities and chasing away investment is ending.”
Cape Times