08 March 2021 - NW74
Nxumalo, Mr MN to ask the Minister of Public Works and Infrastructure
(1)Whether she will furnish Mr M N Nxumalo with the full relevant details of outstanding rental fees owed to her department to date; if not, why not; if so, on what date; (2) whether she will furnish Mr M N Nxumalo with the full relevant details of (a) persons and/or entities and (b) the nature of the agreement with her department?
The Minister of Public Works and Infrastructure:
1. I am informed by the Department that the outstanding rental owed to the Department of Public Works and Infrastructure (DPWI) as at 31 January 2021 is R3 108 516 329 broken down as follows:
(i) Outstanding claims owed by User Departments for accommodation
The total outstanding claims owed by User Departments for accommodation is R3 108 516 329 broken down as follows:
- The DPWI charges rental for the use of State properties by User Departments in line with the Devolution Framework approved by National Treasury. The outstanding balance owed by User Departments for state-owned accommodation is R1 926 228 416 as at 31 January 2021.
- The DPWI also signs lease agreements with private landlords in instances where state properties are not available for use by the User Department, after which the Department recovers all costs related to these leases from the User Departments. The outstanding balance for leases is R1 182 287 913 as at 31 January 2021
(ii) Rental debtors is R101 046 999
These are persons and entities who are renting properties that are not being utilized by Government.
(iii) Prestige debtors is R7 849 565
These are persons who include members of the Executive, former members of the Executive, Members of Parliament, Directors-General, former Directors-General, officials required to be accommodated in Cape Town and/or Pretoria, and other eminent persons required to be provided with accommodation.
The abovementioned amounts may exclude money not yet allocated or cash in transit. At the beginning of the sixth administration, the Minister requested the Department to implement a debt recovery process.
2. (a) The full relevant details of persons and entities owing DPWI as at 31 January 2021 are found in attached Annexure A.
(b) The nature of the agreement is that these persons and entities are leasing properties from DPWI either as a benefit provided in various statutes. In case of properties occupied by User Departments, the agreements are governed by the Devolution Framework as approved by National Treasury.