By Thapelo Molefe
Public Works and Infrastructure Minister Dean Macpherson has ordered an investigation into more than 6,200 state-owned homes occupied by government officials after the department spent nearly R40 million maintaining the properties despite having expenditure records for only a small fraction of them.
The Department of Public Works and Infrastructure spent an estimated R39.6 million on day-to-day maintenance during the 2025/26 financial year. However, expenditure records were available for only 108 of the 6,238 state-owned residential properties allocated to government departments for official use.
Macpherson has instructed Director-General Sifiso Mdakane to investigate all 6,238 properties and submit a report within 30 days detailing who occupies each property, whether it is still required for operational purposes, and which properties should be retained, repurposed or sold.
KwaZulu-Natal has the largest number of state-owned residences, with 3,626 properties, followed by the Western Cape with 566 and Gauteng with 407.
The investigation will also examine properties occupied by officials within the Department of Public Works and Infrastructure to determine whether allocation rules, rental arrangements, housing entitlement requirements and tax obligations have been applied consistently.
“It is my view that the State should not own more than 6,000 residential properties for government officials, particularly when many officials already receive housing allowances, subsidies or other housing-related benefits as part of their remuneration packages,” Macpherson said.
“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.”
The review will assess whether the leasing of state-owned residences complies with the Government Immovable Asset Management Act, the Public Finance Management Act and National Treasury regulations.
It will also determine whether rentals are market-related, whether occupants qualify for official housing under the terms of their employment, and whether the appropriate fringe benefit tax has been applied.
Macpherson has also instructed the Director-General to develop a disposal strategy for properties no longer required for government operations, including identifying those that can be repurposed, redeveloped or sold.
“We need to establish who is occupying each property, the basis on which it was allocated and whether it still serves a legitimate public purpose,” Macpherson said.
“Where properties are underutilised, unnecessary or no longer required for government operations, they should be released from the State’s portfolio through a transparent and legally compliant disposal process.
“Selling properties that the State does not need will reduce unnecessary expenditure, generate value for the public and ensure that government focuses its limited resources on infrastructure and assets that directly support service delivery.”
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