Property

R2.2 billion to fix a head office that was abandoned and declared unfit for humans

Bianke Neethling • 11 September 2026

The government is looking to redevelop the Telkom Towers complex in Pretoria, which has been sitting empty and abandoned for two years.

The complex used to serve as Telkom’s head office, but was sold to the Department of Public Works in September 2016 to establish a facility for the South African Police Service (SAPS).

The precinct served this purpose for a few years, until February 2024, when it was condemned and evacuated.

According to MyBroadband, as of 10 September 2026, the total costs incurred for acquiring, renovating, and maintaining the complex reached R1.4 billion.

On Thursday, 10 September 2026, Public Works Minister Dean Macpherson announced that his department plans to redevelop the complex through a public-private partnership model.

The redevelopment will include a rehabilitate-operate-transfer approach, and is estimated to cost between R1.8 billion and R2.2 billion.

Macpherson said the redevelopment will create 12,700 construction jobs and unlock 212,000 m² of gross leasable area.

On Friday, 11 September, the Portfolio Committee on Public Works and Infrastructure noted the announcement but warned that the redevelopment’s affordability and transparency are paramount.

“The committee recognises the importance of turning dormant state assets into productive public infrastructure,” the Portfolio Committee on Public Works and Infrastructure said.

“However, any proposal involving public funds must be approached with full fiscal discipline.”

The committee said the R1.8 billion to R2.2 billion cost “cannot be treated as a public relations opportunity before Parliament”.

It said the public must be assured that the funding implications have been properly assessed, budgeted for, and tested against affordability requirements for a public-private partnership.

“The committee’s concern is not with the objective of putting public assets to productive use, but rather with ensuring that this is done transparently, affordably, and without avoiding accountability for previous failures,” the committee said.

Committee chairperson Carol Phiri noted that there have been material irregularities in the procurement of the Telkom Towers complex, which have not been fully investigated.

“For this reason, the committee has consistently asked for the forensic report on the investigation into Telkom Towers to be made available,” the committee said.

“The minister’s continued refusal to share it undermines Parliament’s oversight work and delays the concrete action required to correct what went wrong.”

“The chairperson is concerned that the minister’s announcement is premature, and incorrect in timing and manner.”

The history of Telkom Towers

The Telkom Towers complex was originally designed to consolidate Telkom’s executive, administrative, and operational divisions into a centralised hub.

This meant the centre served as the operational backbone of South Africa’s telecommunications juggernaut throughout the 1990s and the early 2000s.

However, in 2015, Telkom decided to decentralise, moving its headquarters out of the central business district to Centurion.

It sold the property to the Department of Public Works in September 2016 for R645 million.

The department planned to use the complex as a centralised head office for SAPS, relocating its top brass and administrative departments into one precinct.

However, following the acquisition, the Telkom Towers complex required extensive remodelling and security updates to suit police operations.

This renovation suffered delays, tender disputes, cost overruns, and supply chain issues. Ultimately, state investment in the complex surged to R1.4 billion.

Once the money had been spent and the centre had been upgraded as required, SAPS occupied the headquarters until 2024.

In February of that year, the trade union Solidarity and health-and-safety inspectors intervened after severe health hazards were discovered inside the towers.

Concerns ranged from a lack of a value Certificate of Occupancy to non-functional ventilation systems, broken elevators, and a shortage of clean water.

This led the Department of Employment and Labour to issue formal prohibition notices, condemning the complex and evacuating all SAPS personnel.

Since then, the Telkom Towers complex has remained empty, yet continued to incur substantial security and maintenance costs.

At the same time, SAPS has had to pay for private leased office space nearby.

The photos below, courtesy of MyBroadband, show the state of the Telkom Towers when it was declared “unfit for humans” and evacuated.