Government invites private investment to revive Telkom Towers amid accountability concerns

The government has invited private investment to revitalize the Telkom Towers complex in Pretoria, but Parliament is concerned that the move must not hide the state's responsibility for the financial losses already incurred on the property. The Department of Public Works and Infrastructure (DPWI) has released a Request for Information (RFI) to solicit proposals for the redevelopment of the Telkom Towers, the Department House, and the Central Government Office within the complex.

The broader precinct is anticipated to draw in R4.5 billion from private-sector investment and generate 12,700 construction jobs.

Dean Macpherson, the Minister of Public Works and Infrastructure, stated that the RFI aims to assess the technical, commercial, and financial viability of the project, including potential Public-Private Partnership (PPP) models, funding, risk allocation, affordability, and value for money. He emphasized the importance of determining what is technically feasible, commercially viable, and financially sustainable while ensuring the state receives value for its money.

The redevelopment is projected to cost between R1.8 billion and R2.2 billion and involve all nine buildings within the complex.

Once completed, the development is expected to provide approximately 106,000 square meters of gross leasable space. The wider precinct is also seen as a potential driver for urban regeneration in Tshwane's inner city, with adjacent government properties to be considered in the feasibility process. Furthermore, the government anticipates saving almost R7 million monthly in costs currently associated with Telkom Towers' inactivity.

However, Carol Phiri, chairperson of the Portfolio Committee on Public Works and Infrastructure, expressed concerns that the new process does not fully address the accountability issues surrounding Telkom Towers. She highlighted that Parliament still seeks answers regarding the property's troubled history, such as the original procurement process, the long period of inactivity, the financial impact on the state, and any breaches of laws, regulations, or policies.

Phiri called for a forensic investigation that not only describes events but also identifies responsibility and recommends corrective action.

It has been reported that the state has spent around R1.4 billion on acquiring, renovating, and maintaining the complex, while R776 million in financial losses have been linked to historical mismanagement. Telkom Towers was originally intended to house the South African Police Service (SAPS) national headquarters but has remained largely unused since 2015 while the state continued to cover security, municipal rates, and other expenses.

The North Tower was earmarked for SAPS, and about 90% of renovations were reportedly completed by 2024, yet the building remained uninhabitable.

Phiri emphasized that the significant public expenditure already committed means Parliament will continue to demand safeguards before considering any new model. She urged the government to prioritize evidence, financial prudence, and the public interest when evaluating the next step. If the RFI process reveals the proposed model is not financially viable, Phiri suggested the government should carefully explore alternative options to avoid exposing the state to additional risk or expenditure.

She stressed that any decision should be based on a transparent assessment of costs, benefits, and long-term sustainability, alongside addressing the outstanding accountability issues surrounding Telkom Towers. Phiri concluded that while finding a productive future use for the property is crucial, it must not compromise accountability.