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The Northern Cape Department of Roads and Public Works notes recent social media commentary regarding the lease agreement for the DSC Office Block, currently occupied by the Office of the Premier.
The Department wishes to place the correct facts on record and clarify the Auditor-General’s findings.
Prior to July 2023, the Office of the Premier occupied the Transnet Building at a rental cost of R1.6 million per month, with an annual escalation of 8%.
Due to serious Occupational Health and Safety non-compliance, recurring cable theft causing prolonged power outages, and persistent failures of lifts and air-conditioning, the building was deemed unsuitable for continued occupation.
In July 2023, the Office of the Premier relocated to the DSC Office Block at a rental of R1.4 million per month, with an annual escalation of 6.5%.
This relocation resulted in an estimated annual saving of approximately R3 million to the Provincial Government, demonstrating prudent financial management and value for public money.
The Auditor-General’s finding relates to an administrative process: the failure to conduct and submit a market analysis and assessment report prior to concluding the lease. This was classified as irregular expenditure.
The Department confirms that no financial loss has been incurred by the State in relation to this lease agreement.
In line with the Auditor-General’s recommendations, the Department has started to undertake corrective measures. These include the termination of the current lease agreement and the commencement of a new procurement process to regularise office accommodation for the Office of the Premier.
The Department reiterates that procurement processes are the responsibility of the Accounting Officer, who delegates to line functionaries in accordance with public finance prescripts.
On information sharing by officials to third parties
The Department takes seriously the protection of official information in line with POPIA and other prescripts. Issues of this nature, regarding the handling of departmental documents will be dealt with through the appropriate internal and legal processes.
The Northern Cape Department of Roads and Public Works remains committed to transparency, accountability, and delivering value for money on behalf of the people of the province.
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