Public Works and Infrastructure Minister Dean Macpherson has ordered a comprehensive investigation into 6 238 state-owned residential properties allocated to government departments and occupied by officials nationwide.
The minister has requested Director-General Sifiso Mdakane to complete the audit within 30 days and develop a strategy for disposing of properties not required for legitimate operational purposes.
The majority of the properties are in KwaZulu-Natal, with 3 626 residences, followed by 566 in the Western Cape and 407 in Gauteng.
Maintenance costs unclear
The department spent an estimated R39,6 million from its day-to-day maintenance budget during the 2025/26 financial year, but expenditure information is only available for 108 of the 6 238 properties.
The investigation will examine the legislative basis for leasing state-owned residences, including compliance with the Government Immovable Asset Management Act, the Public Finance Management Act and applicable National Treasury regulations.
It must also determine whether rentals charged are market-related, whether officials qualify for accommodation under their employment conditions and whether appropriate fringe benefit tax treatment has been applied.
KwaZulu-Natal properties under scrutiny
The report must include a complete assessment of all 3 626 properties in KwaZulu-Natal, identifying which department each property has been allocated to, its intended purpose and operational need, and which properties should be retained, repurposed or disposed of.
The investigation must separately identify properties occupied by officials of the department itself to determine whether the same allocation criteria, governance requirements and tax treatment have been applied without preferential treatment.
Disposal of surplus properties
Macpherson said the state should not own more than 6 000 residential properties for government officials, particularly when many already receive housing allowances, subsidies or other housing-related benefits.
“Unless there is a clear and compelling operational reason for the state to retain a residential property, it should be sold. The default position cannot be that the state indefinitely carries the maintenance, rates and other costs of thousands of residential properties while the public fiscus remains under immense pressure,” he said.
The minister said selling properties not required for government operations would reduce unnecessary expenditure, generate value for the public and ensure government focuses its limited resources on infrastructure that directly supports service delivery.
User departments must also report whether they have surrendered properties no longer required for service delivery and whether any surplus properties should be repurposed, redeveloped or disposed of.
ALSO READ: Judge ordered to vacate state-owned Cape Town property
