Parliament raises concerns over R2.2 billion redevelopment of Telkom Towers

Parliament has raised concerns over the R2.2 billion redevelopment plan for Telkom Towers in Pretoria, urging government to account for losses already incurred before committing to the investment. The project involves refurbishing all nine buildings under a rehabilitate-operate-transfer model, which will see the department gain 106,000m² of leasable area.

This expansion will enable state departments currently housed in costly private leases to return to state-owned buildings, potentially generating revenue for the state. However, Parliament has noted that the state has already spent R1.4 billion acquiring, renovating and maintaining the complex, with R776 million in financial losses directly attributed to historical mismanagement.

The South African Police Service (SAPS) is identified as a potential user of the complex after it was transferred to the state in 2016. Despite 90% of renovations being completed as of 2024, the building remains uninhabitable. The Portfolio Committee on Public Works and Infrastructure has questioned the continued cost of private leases while state-owned buildings remain vacant or underused, insisting that losses must be quantified and recovery processes initiated before the redevelopment proceeds.

South African Property Owners Association CEO Neil Gopal believes the redevelopment could make commercial sense if the project's financial viability is proven and supported by sufficient market demand. He also stressed the need for a full financial impact analysis and a market study to determine if the precinct or node requires more commercial use.