Summary of the Story:
- Minister of Public Works and Infrastructure, Dean Macpherson, is commissioning an independent report on the 2016 purchase of the former Telkom HQ in Tshwane.
- The building was bought for R695 million and renovated for R250 million.
- The building has been vacant and vandalised for eight years.
Public Works Minister Dean Macpherson is investigating the R950 million purchase and renovation of the former Telkom HQ building in Tshwane amid concerns over possible graft and mismanagement.
Public Works Minister investigating R950m Tshwane Telkom HQ sale
In a statement, Macpherson confirmed that his department has commissioned an independent probe into the controversial 2016 purchase and subsequent renovation of the now-abandoned building in central Tshwane.
The building, acquired for R695 million and renovated for an additional R250 million, has remained unused and in disrepair for the past eight years, raising serious concerns about public fund mismanagement.
During an oversight visit to the building with City of Tshwane Executive Mayor Cilliers Brink, Minister Macpherson expressed his frustration at the building’s disuse and deterioration.
He revealed that the complex had been vandalised and occupied by criminal elements, adding further burden to the city.
According to the Daily Maverick, issues such as non-functional toilets, fire extinguishers that hadn’t been serviced since July 2022, faulty ventilation systems, and sewage leaks led to the Department of Labour ordering the closure of the building.
This decision came after an inspection by labour department officials, police management, and the Solidarity trade union, which represents some SAPS members.
National police spokesperson Brigadier Athlenda Mathe, responding to the backlash at the time, claimed that the Telkom Towers building in Pretoria’s CBD accommodated personnel who provide administrative support to operational divisions.
Renate Barnard, a representative from Solidarity, was part of the inspection and described the state of the building as “terrible,” noting that it was unfit for any person to work in.
She also pointed out the stark contrast between the dilapidated condition of most floors and the expensively refurbished 24th floor, which was intended for Police Minister Bheki Cele but has not been used by him.
Barnard expressed concern over the significant investment made in purchasing and renovating the building, which was acquired from the Telkom Retirement Fund for R695 million in 2015, with an additional R200 million scheduled for renovations.
Minister Macpherson’s independent report will seek to address several key questions, including the necessity of the building’s purchase, the process followed for contractor appointments, the suitability of the building for the South African Police Service (SAPS), and potential accountability for any misuse of funds.
Macpherson stated:
“We need to ensure that public investments are secured and utilized effectively to avoid wasting public funds in a fiscally constrained environment. We will work closely with the City of Tshwane to ensure our buildings are used for the public good and do not fall into disrepair.”