'Evictions': Minister Dean Macpherson threatens departments that owe R14bn in rent

Public works & infrastructure minister Dean Macpherson has described incomplete government construction projects as “crime scenes”, saying the projects have cost taxpayers about R3bn. 

Macpherson briefed parliament on Thursday on delays in completing infrastructure projects. 

“These delays have hampered the growth and development of our nation’s infrastructure, now costing us close to R3bn in delayed construction projects over a number of financial years,” Macpherson said. “These delays are not just figures in a report; they represent stalled progress, halted economic growth, and deferred services for millions of South Africans.

“These are also crime scenes where individuals have been paid for work they have not completed. They are crime scenes that have robbed people of hope and a better life.” 

Macpherson told parliament that 164 infrastructure projects out of 206 in the current financial year were experiencing delays.

“The financial toll alone is substantial, with an estimated R1.3bn already invested in projects in this financial year that are yet to reach completion. Over several financial years, the number jumps to R2.9bn in delayed construction projects.” 

The minister used the Telkom Towers project in Tshwane as an example of “failure”. The building had been bought for the police. 

He said close to R1bn was spent on upgrades over 10 years, with little to show for it.

“The complex, intended to become the SAPS headquarters, still has the Telkom sign in front of the building. Instead of serving the public, this project has become a financial burden, costing the state millions each year for security alone. To avoid further waste of public finances, we are now exploring options to either repurpose this asset or remove it from our portfolio altogether, with an independent investigation under way.” 

The Sarah Baartman Centre of Remembrance project in Hankey, in the Eastern Cape, launched in 2014 with R247m spent was another project which was in the spotlight. 

“Contractors who do not meet their obligations on time and within budget will face immediate repercussions, including blacklisting. And not just the businesses — the individuals themselves. They belong in jail, not on construction sites,” he said.

Macpherson talked tough when demanding departments pay the R14bn owed to public works in unpaid rent.

“The R14bn owed to us by user departments must be paid, or else we will be forced to start treating government departments as debtors and apply debtor policies, which may include debt collection and eviction,” he told parliament. 

He added that delayed payments have been a major source of frustration, resulting in project stoppages and, ultimately, increased costs.

“By holding client departments accountable, we are addressing a key bottleneck, ensuring that project funding flows efficiently from start to finish,” he said.

DA MP Edwin Bath urged Macpherson to move with speed in blacklisting contractors who do not finish projects despite being paid. 

“The minister must accelerate the blacklisting of non-performing contractors to prevent further damage to the department's reputation,” Bath said.

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