Chairwoman of Portfolio Committee on Public Works Mokgadi Phiri says there’s a culture of nonpayment at government departments.
GOVERNMENT departments owe billions of rands.
According to Mokgadi Phiri, chairwoman of the Portfolio Committee on Public Works and Infrastructure, this is due to a culture of nonpayment. Government buildings belong to the Department of Public Works and Infrastructure (DPWI), with other departments renting them.
“We have clients who are not paying what is due to us. We are talking to all the departments that we are servicing,” she said.
Phiri also raised concerns that the Property Management Trading Entity (PMTE) responsible for managing, acquiring, and depositing immovable government assets is failing to fulfil its duties.
She said the entity was dysfunctional.
“We are concerned as a department and a committee that the department doesn’t have necessary legal measures to enforce payment. It has to jump through too many hoops to get payment. Yet, PFMA (Public Finance Management Act) provides that payment must be made within 30 days of receipt of invoices. This puts the life of small and medium contractors at risk. Client departments must get their house in order so that we have a coherent governance,” she said.
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Phiri said PMTE needs to strengthen its internal controls.
“At this stage, it’s very disappointing to see the state of government property left unprotected and vandalised,” she said.
She mentioned the troubled Telkom Towers complex as an example of neglected government buildings.
The place was bought for R700 million in 2016 to serve as the South African Police Service (SAPS) headquarters, but they had to be evacuated in February after being declared unfit for human habitation.
“This has been a thorny issue. We went to Telkom Towers and observed the building, and it’s in poor condition. We made a resolution that they must start with an independent investigation. We are relying on the minister to start that process,” she said.
In October 2024, DPWI Minister Dean Macpherson said client departments owe his department nearly R14 billion.
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