Macpherson Launches Probe into Telkom Towers and Expands Infrastructure Strategy

During an oversight inspection of the Telkom Towers earlier this month, Minister Macpherson expressed his concern over the situation and committed to ensuring accountability.

Public Works and Infrastructure Minister Dean Macpherson announced that his department has issued tenders to appoint an independent investigator to deliver a detailed report on the Telkom Towers building in Pretoria within 60 days of their appointment. This report is expected to outline what went wrong with the building, identify those responsible, and recommend solutions to prevent further wastage of taxpayer money.

The Telkom Towers building, procured in 2016 to serve as the South African Police headquarters at a cost of nearly R700 million, remains unoccupied despite over R200 million being spent on renovations. The building has been plagued by various issues that have left it vacant and underutilized.

During an oversight inspection of the Telkom Towers earlier this month, Minister Macpherson expressed his concern over the situation and committed to ensuring accountability. In addition to the investigation into the Telkom Towers, Macpherson revealed that a second tender will be issued to examine leases established by the Department of Public Works and Infrastructure. This investigation will ensure that these leases comply with legal requirements and that the state is paying market-related prices.

Macpherson also addressed a significant IT security breach within the department, which has led to the loss of R300 million over the past decade. This investigation builds on earlier work by Deputy Minister Sihle Zikalala and highlights the seriousness of the vulnerabilities found in the department’s Information and Technology Systems.

In another corruption-related matter, the Minister has authorized legal services within the department to assist the Special Investigating Unit (SIU) in recovering up to R20 million from Kroucamp Plumbers. This case involves tenders awarded in 2015 and 2018, where procurement processes were deemed unlawful and unconstitutional. Payments amounting to over R300,000 were allegedly made to officials within the department, further indicating the extent of corruption that the Minister is determined to eradicate.

Macpherson emphasized his vision for the department to play a central role in utilizing public assets for the public good, contributing to South Africa’s economic growth, and creating jobs. He noted that his goal is to turn South Africa into a construction hub, with cranes visible across the country.

Central to this vision is the expansion and capacitation of Infrastructure South Africa (ISA), which Macpherson wants to function as the single point of entry for all priority infrastructure projects. This strategy aims to streamline processes, reduce inefficiencies, and ensure that projects with the greatest economic and social impact are prioritized.

To further bolster infrastructure investment, the department is collaborating with the National Treasury to streamline the Public-Private Partnership (PPP) process and establish an Infrastructure Fund that reports directly to the Treasury. The focus will be on diversifying funding sources for infrastructure projects through PPPs, blended finance, and social infrastructure programs. The ISA will work closely with the Treasury to direct investments toward projects that promise significant GDP growth and job creation.

As the department pushes forward with these reforms, Macpherson underscored the importance of internal accountability and transparency to ensure the successful delivery of the department’s core mandate. "Accountability and transparency should be at the core of everything we do, while we work to eliminate corruption and abuse in all spheres of our organization," he concluded.