14 August 2025 | 08:25 CAT
2-minute read

In a nutshell:

1. R779 million spent on private security over five years for a portfolio of largely under-utilised state properties.
2. A plan to dispose of 1 600 non-core properties is expected to save R200 million annually in security costs.
3. Broader reform includes halting expensive leases, enhancing asset management, and transitioning state properties into revenue-generating assets.

Taxpayers have paid a staggering R779 million over the past five years to secure state-owned properties, Public Works and Infrastructure Minister Dean Macpherson disclosed in response to a parliamentary question from DA MP Edwin Bath. The revelation underlines the mounting fiscal burden posed by vacant and under-utilised public buildings.

In an interview on Radio Islam International, Minister Macpherson emphasised that the Department of Public Works and Infrastructure (DPWI) is South Africa’s largest property holder, responsible for 88 000 buildings and 5 million hectares of land. The department currently contracts private security for 318 properties, managed under 248 active contracts, while 10 458 buildings remain unutilised—either condemned, derelict, or unfit for occupation.

The Minister previously underscored efforts to keep security costs in check and explained that the number of properties requiring protection is constantly changing, depending on occupancy and risk of illegal occupation.

Yet these security costs are only part of a growing problem. In the 2024/25 fiscal year alone, DPWI disbursed R5,5 billion on private leases and R2,8 billion on maintenance for inadequately maintained state facilities. The Minister has referred the top ten most expensive lease agreements to the Special Investigating Unit to assess their legitimacy and value for money.

On the solution front, Minister Macpherson confirmed a new initiative: disposing of 1 600 non-core properties, projected to save R200 million annually in security costs. He pledged that these properties will be advertised by the end of the year.

“We currently are preparing to dispose of 1 600 properties that we deem to be non-core. That will save us 200 million rand a year in security costs. We hope to advertise that by the end of the year,” Minister Macpherson said.

This measure, he said, will also reduce municipal rates and maintenance expenses, easing strain on the public purse.

This move fits within a broader reform agenda Minister Macpherson is pursuing. Since taking office in mid-2024, he has halted new leases for MPs and ministers, redirected funds to infrastructure development, launched asset registers, and advanced plans to reform the Property Management Trading Entity (PMTE) into a revenue-generating entity.

Listen to the full interview on Sabaahul Muslim with Moulana Sulaimaan Ravat.