Explosive allegations from Dean Macpherson about R6 billion in private leases and government housing double-dipping

Minister of Public Works and Infrastructure, Dean Macpherson, said the state spends billions on private leases, while many government-owned buildings are vacant.

Minister of Public Works and Infrastructure, Dean Macpherson, said the state spends billions on private leases, while many government-owned buildings are vacant.

He shared this information during a discussion at the 2026 Biznews Conference at the Champagne Sports Resort in the Drakensberg.

Macpherson responded to a question from OUTA CEO Wayne Duvenage, who asked whether the Department of Public Works and Infrastructure had reviewed the leases.

Duvenage highlighted that many government department offices were being leased at high prices. Many landlords were politically connected individuals.

This was strange, as many government-owned buildings, which were vacant and decaying, could have been used.

Duvenage asked Macpherson whether they had done an audit and to stop the abuse and waste linked to government departments leasing private offices.

He responded, saying that they did indeed look into the issue at the Department of Public Works and Infrastructure.

“When I started asking this question and looking into the leases, it was like opening Pandora’s Box,” he told delegates.

“Wayne Duvenage is right. There are many connected people and businesspeople making a lot of money from these inflated leases.”

“Very few people know this, but Cat Matlala’s downfall began with allegations about a tender to provide medical services to the police.”

He explained that the only way he could have done that was to have a lease at the police college in Pretoria, so he could have a shop there.

“The great irony about Public Works is that we own all of these buildings, yet we spend R6 billion a year on private leases. It doesn’t make sense to me,” he said.

Macpherson revealed that they met with the National Treasury two weeks ago to work on an instruction note regarding leasing.

“This will involve a step test to determine if a lease is truly necessary, if the pricing is fair, and who the landlords are. We are also conducting an audit in this area,” he said.

Another problem is government housing double-dipping, where officials receive a housing subsidy and live in a government house.

“We found that 6,238 government properties are currently inhabited by government officials,” he said.

“You cannot receive a housing subsidy and allowance in your salary while simultaneously living in government-provided housing. It must be one or the other.”

“We are beginning to address this, and disciplinary cases are already underway for officials who have even been farming out these houses,” he said.

“It is a complex, interconnected issue, and while tackling it makes me unpopular, it is necessary.”

“We are working to understand the full scope and ensure there is proper consequence management.”