R250 million down the drain

The Department of Public Works and Infrastructure spent R250 million to renovate the Telkom Towers Buildings in Pretoria. However, they are now overrun by criminals and remain unoccupied.

On Thursday, 1 August 2024, Minister of Public Works and Infrastructure Dean Macpherson and the City of Tshwane’s executive mayor, Cilliers Brink, did an oversight visit to the building.

Brink said their inspection revealed that the lifts in the building weren’t working and that the wiring was rewired in a way that makes no sense and creates a health hazard.

He added that there was no proper ventilation in the building and that the electrical light systems didn’t work.

“Occupational health and safety standards and building regulations were not complied with. So that was a technical determination to withdraw the occupation certificate,” he told SABC News.

Brink added that criminals have moved into the building and started stealing office and gym equipment.

“Employees who park their cars at the precinct find that their cars are stolen from the parking lot,” he said.

He added that derelict buildings, like the Telkom Towers, cause severe problems for the City of Pretoria, which is why they are taking action.

Macpherson said it was unacceptable that the building complex had been left vacant for the past eight years, barely used.

“It is disheartening that so much public funding has been spent to purchase and renovate the building, but it was allowed to be vandalised and occupied by criminals,” he said.

“We cannot spend more than eight years trying to establish how to secure public property while it deteriorates into lawlessness.”

“I will commission an independent report into the purchase of the former Telkom Headquarters Building in 2016 for R695 million and its subsequent renovation for R250 million,” he said.

The report will provide him with recommendations on the necessary steps to address and remedy the situation within 60 days of their appointment.

The Minister said that the terms of reference for the independent investigation will be to provide him with answers to the questions below.

1. What led the Department of Public Works and Infrastructure to buy the Telkom Tower complex, and whether the purchase was necessary?
2. What process was followed for appointing contracts and determining whether the contractors were fit for purpose?
3. Was the complex’s purchase by the Department of Public Works the best option for the South African Police Service?
4. Should any officials be held accountable for the department’s position regarding the purchase and renovation of the building?
5. Are there any grounds to reclaim any monies paid to contractors where work was not done, or not done according to building standards or health and safety standards?
6. What will be the best way forward, considering the current state of the building?
7. What steps can be taken to avoid the situation from occurring again?

“As the Department of Public Works and Infrastructure, we need to start moving faster to ensure the security of public investments,” he said.

He added that public investments must be used to avoid the waste of public funds in a fiscally constrained environment.

“We simply cannot spend millions to repair and address vandalism and poor department planning and spending,” he said.

“We will have to start working closer with role players such as the City of Tshwane to ensure our buildings are used for the public good and do not fall into disrepair.”

“By working together, we can reclaim these buildings, unleash infrastructure investment and turn the country into a construction site.”

Inside Telkom Towers