Social development owes almost R18 million in rent on leased Sassa facilities
Multiple Sassa sites across the country are operating from properties with rental disputes, invoicing disagreements and unpaid rent.
The Department of Social Development (DSD) owes approximately R18 million in overdue rent at several leased facilities used by the South African Social Security Agency (Sassa). One property, a national nerve centre, is responsible for the majority of the outstanding amount, accounting for at least 92%. Other affected sites include service points and regional offices across KwaZulu-Natal, Limpopo, Northern Cape, and Gauteng.
The unpaid rent spans up to three years, due to unsigned lease agreements. Four of the seven affected properties are located in KwaZulu-Natal: a local office in New Hanover and service points in Dukuza, Lamontville, and Umnini. The DSD has not received leases for these properties, which has hindered their ability to process required invoices.
A dispute between Sassa and uMshwathi Municipality over billing rates and unratified invoices for a lease expansion at the Thusong Service Centre is contributing to the unpaid rent at the New Hanover site. The municipality is incorrectly billing Sassa based on an outdated lease agreement while new terms are being finalized. The DSD plans to determine the payment period once a new lease agreement is signed and invoices are corrected.
The department has also added automated alerts to existing leases to prevent similar issues in the future. The national records management centre of Sassa owes R16.5 million in outstanding rent, which is currently subject to legal action as there is no valid lease agreement. The DSD has stated that all affected landlords have been notified of the non-payment and reasons for it, with no official disciplined for any actions related to the lease agreements.
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