One government agency has not paid rent for three years at one of its offices

The South African Social Security Agency (SASSA) owes R17.92 million in unpaid rent across seven offices, including its Records Management Centre. 

This was revealed by Social Development Minister Dina Pule in a response to a question in parliament.

Pule explained that the rent has not been paid due to disputes over the rates charged by local municipalities. 

The rent at SASSA’s New Hanover Local Office has not been paid since 1 September 2023. This means it has not paid any rent for the office for three years. 

Pule explained that the rent has not been paid due to an ongoing dispute between SASSA and the municipality over billing rates and unratified invoices. 

SASSA and the municipality are currently negotiating a new lease agreement, which will include a repayment period for rent not paid. 

The non-payment of rent creates a major headache for municipalities that lack sufficient revenue to provide basic services. 

National Treasury has flagged this issue for years and, in May, moved to deduct funds from national and provincial departments that owe money to municipalities. 

Finance Minister Enoch Godongwana revealed that provincial departments owe municipalities more than R14 billion. National departments owe R8.2 billion. 

“National Treasury has taken a decision to deduct monies from national and provincial departments to settle outstanding debts owed to affected municipalities,” Godongwana said. 

A major culprit has been SASSA, which has refused to pay rent until outdated lease agreements for its offices are replaced. 

SASSA’s non-payment particularly concerns municipalities in KwaZulu-Natal, with four of its offices in the province having outstanding debt bills. 

These offices and points of presence are critical to SASSA in meeting its government mandate to support South Africa’s poorest. 

SASSA was created in 2005 to administer and distribute social grants across South Africa. It is the primary social safety net for vulnerable, low-income communities. 

It does not appear that SASSA will begin paying its rent soon, as it awaits updated lease agreements and correct rate bills. 

Pule also revealed that no consequence management measures have been implemented in any of the cases against SASSA officials. 

This means that those responsible for paying the rent and securing updated leases have not yet faced any disciplinary action. 

The table below shows the SASSA offices with outstanding rent across municipalities in South Africa.