Why government buildings are falling apart

[Nat Quinn]

 

Why government buildings are falling apart

 

The Department of Public Works and Infrastructure says it needs close to R14 billion to keep all the government buildings in its portfolio well-maintained and in running order (ie, accommodation charges) – but it is only getting R5.7 billion from the budget.

This means there is an R8.3 billion shortfall in accommodation charges – with no reversal of this trend expected in the next three years.

According to the department’s presentation to parliament’s portfolio committee on Tuesday (5 March), it expects to see a budget shortfall of R25 billion over the next three financial years.

“As a result of the shortfall, the entity in most cases cannot deliver the basic services required, backlog maintenance cannot be performed, and future refurbishments cannot be executed,” said the DPWI.

“This all leads to further deterioration of the buildings, which will lead to the need for more capital injection.”

Looking across the department’s portfolio of buildings, it currently oversees 56,393 buildings covering nearly 17 million square metres.

The South African Police Service (SAPS), Defence Department, Justice Department and correctional services account for 91% of both the count and size of the properties under billing.

Understandably, it is also these departments which account for the most significant shortfalls.

This total shortfall is expected to be R8.3 billion and R8.8 billion in the 2025/26 and 2026/27 financial years, respectively.

According to the department’s most recent annual report, 6,808 state-owned buildings are defined as being in a “poor or very poor” condition, with the government unable to keep track of ballooning servicing costs.

The government’s relatively new approach to solving this is through public-private partnerships (PPPs).

According to DPWI Minister Sihle Zikalala, through PPPs, the department aims to encourage the private sector to refurbish and lease out some state-owned properties over time and hand them back to the state in a functional state.

This is argued as an opportunity to alleviate fiscal pressure on the property management functions that the entities have, including facilities management, maintenance, repair and construction.

“We are not selling the buildings to the private sector; we want to build the capacity of the state [rather] than depending on the private sector entirely,” said Zikalala.

 

source:Why government buildings are falling apart – BusinessTech

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