Joint statement by National Treasury and the Department of Public Works and Infrastructure on National Treasury building lease
18 March 2024
National Treasury and the Department of Public Works and Infrastructure (DPWI) have noted with concern recent reporting on the National Treasury lease and wish to clarify how government building leases work as well as correct certain factual inaccuracies contained in the reporting.
DPWI is the custodian of government immovable property. It is responsible for the provision of accommodation and acquisition of leases on behalf of client departments. The acquisition of leased property is an open and transparent tender process based on a Needs Analysis, User Specified Accommodation Schedule and User Immovable Asset Management Plan (UAMP). All of which are developed by a user department in accordance with the guidelines published by the Minister of Public Works under the Government Immovable Asset Management Act 19 of 2007 (GIAMA).
Over the last six months, National Treasury submitted an updated Needs Analysis to get better value for money from its lease. In addition, National Treasury also submitted a User Specified Accommodation Schedule and UAMP to the DPWI for office accommodation as required by the relevant prescripts. The DPWI will issue an open tender to the market for prospective property owners to compete. All property owners in good standing can participate in the open tender.
In terms of the article published in the City Press, entitled: “National Treasury’s lease agreement dispute costs taxpayers R145 million” it is important to set the record straight in several respects: