Lesufi orders probe into R34m office rental costs in Gauteng

Gauteng premier Panyaza Lesufi says investigations into the high costs associated with renting offices for government departments will soon be under way.

Sunday Times reported the provincial government spends R34m a month on renting office space, totalling more than R400m a year, despite owning 41 vacant buildings.

The vacant buildings are said to be in poor condition and have been declared uninhabitable, resulting in the provincial government having to lease office space from private owners.

Lesufi said an independent forensic company was appointed to determine whether the rental costs are justified and if there are any irregularities in the leasing process.

He outlined steps to address the issue, including conducting a cost-benefit analysis of owning vs leasing buildings and assisting the provincial government in optimising or selling vacant properties. The government will also explore private sector partnerships to repurpose underused buildings into mixed-use developments.

“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.”

Lesufi emphasised the government's commitment to fiscal responsibility and efficient use of public resources.

“We want to ensure strict compliance with the Public Finance Management Act and supply chain regulations while scrutinising expenditure on leased properties.

“This process will guarantee due diligence, transparency and accountability. 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 occupational health and safety standards.”

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