Public works & infrastructure minister Dean Macpherson plans to initiate an investigation into the R6bn leases that the government pays for each year.
Macpherson is concerned that government is not getting value for money, about whether procurement regulations were followed and whether there are not government buildings in the vicinity that can be used.
The investigation will involve a random audit of 20% of the leases. The tender for the probe will be released in the next few weeks “to ensure that these leases were completed within the confines of the law and that the state is paying market-related prices for each,” Macpherson said at a news media briefing Wednesday.
An investigation would also be undertaken into failed public sector projects such as the Telkom Towers complex in Tshwane (partly used as SAPS headquarters before its evacuation) where nearly a R1bn was spent on acquiring and redeveloping the buildings which remain unusable.
A tender for the appointment of an independent investigator has been issued to compile a report on the project within 60 days “on what went wrong, who’s to blame and what will be the best solution moving forward for the Telkom Towers which will limit further wastage of taxpayer money”.
Macpherson identified eight pillars that needed urgent reform by his department which he wants to transform into an economic delivery unit, galvanising investment in infrastructure to turn SA into a construction site.
“Central to our strategy for increased infrastructure investment is to see the expansion and the capacitation of Infrastructure SA (ISA). We want to ensure that ISA functions as the single point of entry for all priority infrastructure projects, streamlining processes, and reducing inefficiencies that have previously hampered project delivery.
“This will increase investor confidence in public infrastructure projects, knowing that where ISA is involved, construction projects are completed on time and within budget.”
Up till now ISA has only been responsible for designated strategic infrastructure projects or where they are requested by the private sector.
Macpherson said it could use some of the R900bn allocated over the next three years for infrastructure to deliver bulk infrastructure projects of over R1bn particularly for municipalities which do not have the capacity for them.
Priority would be given to mega infrastructure projects in water and ports.
Macpherson wants to see ISA as a public entity under his ministry whereas it now has dual reporting lines to both the department and the presidency.
The capacity of municipalities to prepare and package infrastructure projects needed to be enhanced, he said, to address the critical lack of municipal infrastructure such as water, sanitation, roads, and electricity.
The minister also wants to work with the National Treasury to streamline the public-private partnership (PPP) process and establish an Infrastructure Fund that reports directly to the National Treasury.
Another priority is to remove obstacles that delay infrastructure projects in conjunction with Operation Vulindlela, including streamlining permitting and approval processes, particularly for independent power producers (IPPs).
“We are diversifying funding sources for infrastructure projects by focusing on PPPs, blended finance, and social infrastructure programmes,” Macpherson said.
The regulatory framework governing the construction industry would be reviewed to create a more competitive and transparent construction industry. The department would focus on tender cancellations, social unrest, damage to infrastructure, and crime, particularly reducing the influence of the construction mafia.
Macpherson said he was not convinced about the accuracy of the R155bn asset register of state properties.
In a bid to raise additional infrastructure investment he will be meeting with development finance banks in China and the UK during official visits this month.
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