State property register essential to cutting wasteful government leases

A reliable Immovable Asset Register is crucial for improving public asset management and reducing wasteful government leases, according to Carol Phiri, Chairperson of the Portfolio Committee on Public Works and Infrastructure. The government currently spends billions of rand each year leasing private property for various departments, despite owning thousands of buildings and land holdings. This raises concerns about the government's ability to manage public assets effectively without a credible register.

The first step in accommodating a government department should be to determine whether suitable state-owned accommodation already exists, rather than relying on leased options. However, the Portfolio Committee has observed that this approach is often overlooked. The consequences of poor asset management include declining inner-city areas, weakened property values, and increased opportunities for illegal occupation and criminal activity.

A key player in managing the state's property portfolio is the Property Management Trading Entity, but its effectiveness hinges on having accurate and up-to-date information about the assets it controls. The register is not merely an administrative requirement; it is a strategic governance tool that should be aligned with municipal planning systems to support local government objectives.

The national government owns around 88,000 buildings, yet continues to spend billions on private leases. Vacant and underutilised state buildings not only contribute to urban decline but also serve as symbols of neglect. The Telkom Towers precinct, acquired for use by the South African Police Service, remains largely vacant despite significant expenditures on acquisition and refurbishment. This situation underscores the need for transparency and accountability in asset management.

To address these issues, the establishment of a professional State Property Company is encouraged. However, genuine reform cannot succeed without a reliable national Immovable Asset Register as the foundation. Such a register should not be viewed as an administrative necessity, but as a strategic governance tool essential for national development.