Thursday, March 6, 2014

R3bn/year spend on leasing private office space

THE DEPARTMENT of public works spends over R3bn/year leasing office space in privately owned buildings on behalf of national government departments.
A review of these leases confirms government is being fleeced. Cabinet is outraged but shouldn’t be because irregular leases are the main reason the department’s audit opinions have got steadily worse over eight years and are now in the disclaimer zone. Public works and treasury won’t give figures on how much government is losing on leases; some officials believe the cost could be cut by 50% with better management.

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