Public Works and Infrastructure Minister Dean Macpherson Announces Independent Probe into Telkom Towers Scandal

by Selinda Phenyo
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Dean Macpherson is the minister of Public Works and Infrastructure and will oversee management of the government's 88 000 buildings and 4.7 million hectares of land. (Darren Stewart/Gallo Images)

By Phenyo Selinda

Pretoria — Public Works and Infrastructure Minister Dean Macpherson has announced a significant step forward in addressing the long-standing issues surrounding the Telkom Towers building in Pretoria. The building, which was acquired in 2016 to serve as the South African Police Service (SAPS) headquarters at a cost of nearly R700 million, has since remained vacant and has been the subject of substantial public and governmental scrutiny due to the staggering amounts of taxpayer money spent on its renovation—estimated at over R200 million to date.

During a media briefing held in Cape Town on Wednesday, Macpherson confirmed that his department has issued tenders for the appointment of an independent investigator. The investigator, once appointed, will have a 60-day mandate to produce a detailed report outlining the failures and mismanagement associated with the Telkom Towers project. This investigation aims to identify those responsible and recommend strategies to mitigate further financial losses.

Macpherson’s decisive action comes after his oversight inspection of the building earlier this month, where he expressed his dismay at the extensive delays and apparent waste of public funds. The Telkom Towers building has been a subject of contention, with allegations of poor planning, mismanagement, and potential corruption surrounding its acquisition and subsequent non-utilisation.

A Broader Investigative Framework

In addition to the Telkom Towers investigation, Minister Macpherson revealed plans to initiate a second independent investigation focusing on the leases managed by the Department of Public Works and Infrastructure. This investigation will scrutinize the legality and market conformity of these leases, ensuring that the state is not overpaying for rented properties. This move is part of Macpherson’s broader strategy to foster accountability and transparency within the department, which has been plagued by allegations of corruption and inefficiency.

A critical area of concern identified by Macpherson is the decade-long IT security breach within the department, which has led to financial losses amounting to R300 million. The breach, initially discovered by Deputy Minister Sihle Zikalala earlier this year, has been described as a severe vulnerability in the department’s operations, necessitating a comprehensive investigation to prevent future occurrences.

Legal Action and Recovery of Funds

In his efforts to combat corruption, Macpherson has empowered the department’s legal services to assist the Special Investigating Unit (SIU) in recovering up to R20 million linked to unlawful procurement processes involving Kroucamp Plumbers. The SIU found that tenders awarded to the company in 2015 and 2018 were marred by irregularities, including payments made to department officials totaling over R300,000. These actions, Macpherson stated, are indicative of the deep-rooted corruption he is determined to eradicate from the department.

Infrastructure Development as a Catalyst for Economic Growth

Amid these investigations, Macpherson remains focused on his vision to transform the Department of Public Works and Infrastructure into a cornerstone of South Africa’s economic recovery. He emphasized that the department must play a central role in utilizing public assets to drive economic growth and job creation. Central to this vision is the expansion and capacitation of Infrastructure South Africa (ISA), which Macpherson envisions as the single entry point for all priority infrastructure projects.

By streamlining processes and reducing inefficiencies, ISA is expected to boost investor confidence in public infrastructure projects, ensuring that these projects are completed on time and within budget. Macpherson also highlighted the importance of diversifying funding sources for infrastructure projects, including the use of Public-Private Partnerships (PPPs) and blended finance models. Collaborating closely with the National Treasury, the department aims to direct investments toward projects with the highest potential for GDP growth and job creation.

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