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Govt in KZN plans to spend R6bn on consolidated office space, IFP says it's a waste of money


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Govt in KZN plans to spend R6bn on consolidated office space, IFP says it's a waste of money

9th March 2022

By: News24Wire

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The KwaZulu-Natal government is planning to spend more than R6-billion to build head offices for its various departments, but not everyone is happy about the move - particularly not the Inkatha Freedom Party (IFP).

The development, spearheaded by MEC for Human Settlements and Public Works Jomo Sibiya, is apparently part of a plan to have all provincial government departments at one location.

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"Currently, KwaZulu-Natal government departments are located in various locations in Pietermaritzburg and Durban," Sibiya said.

He said the government estimated that the total cost of rent for government offices over the next 20 years would amount to R5.865-billion.

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The projected cost of the construction of the provincial government precinct is R 6.817-billion, Sibiya said, "with the market value of the precinct after construction valued around R11-billion".

In the plan to develop the precinct were alternative funding models. Sibiya said these were being explored to find the "most efficient funding model to reduce the burden on the State to fund this project".

It was anticipated that the statutory compliance (or legal framework) processes would be completed in January 2023, and the financial modelling was expected to be completed by March 2023.

"The process of engaging financial institutions and other funders will then begin in earnest. The National Treasury and provincial treasury are providing much-needed guidance in this regard," said Sibiya.

KZN does not have money to spend

However, IFP leader Velenkosini Hlabisa said the current rental accommodation and office space for departments in Pietermaritzburg cost R150 418 000 a year, excluding other costs.

He said South Africa was going through a tough financial time and that the province did not have money, particularly after the July unrest and the Covid-19 pandemic, to splurge on provincial buildings.

He said the money could go towards school infrastructure, hospitals, clinics, police stations, and other government buildings that are dilapidated due to a shortage of funds.

"[The] education [department] has failed to honour the promise to eradicate pit toilets in schools. The roads are crumbling in the province and some rivers are without the much-needed bridges. Water shortage remains a huge challenge to most communities in the province and funds are needed to address this challenge," he explained.

Hlabisa added that traditional leaders were being sidelined.

"Amakhosi courthouses and offices are neglected, with their secretaries earning peanuts. Izinduna are owed a huge back pay by province. The Dr Pixley ka [Isaka Seme Memorial Hospital] remains partially closed because of the shortage of funds to open it in full. The list of where funds are much needed in the province is endless."

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