Losing the plots in foreign lands
Dirco properties rot as renovation millions mysteriously blown
South African government properties around the world have fallen into disrepair after R118m meant for maintenance was diverted in 2016 to buy nonexistent land in New York.
Parliament’s international relations portfolio committee said this week it had uncovered numerous vacant, unused properties and plots of land.
Taxpayers are funding security and cleaning costs for buildings in prime areas, some of which have been empty for more than 20 years and others for which there are no title deeds.
MPs on the committee said the neglect was “a source of diplomatic embarrassment”. They pointed to a need for skilled and experienced staff in the international relations department property management office, part of the finance branch.
They want minister Naledi Pandor to order a professional assessment of all the properties and decide whether these should be renovated, rented out or sold.
Last week, Pandor announced the closure of 10 diplomatic missions during this financial year to save money. Court action is under way to recover the money diverted to the New York project.
Neglect of some of SA’s properties in other countries ‘a source of diplomatic embarrassment’ International relations portfolio committee
● Dozens of buildings, vacant properties and pieces of land owned by the South African government in several countries are in a state of decay because of millions meant for renovations was diverted to purchase land in New York that did not exist.
The abandoned assets, which include a parking bay in a prime spot in Paris, are some of the state-owned properties uncovered by a virtual oversight exercise conducted by parliament’s portfolio committee on international relations.
The committee’s virtual oversight conducted in March covered 12 missions, in Tehran, Iran; Luanda, Angola; Khartoum, Sudan; Juba, South Sudan; Havana, Cuba; Brasilia and São Paulo, Brazil; Windhoek and Walvis Bay in Namibia; Mbabane, Eswatini; Blantyre, Malawi; and Zurich, Switzerland, Portugal and France.
According to the committee report, the department of international relations and co-operation (Dirco) reported that in its property portfolio it has 14 land parcels and 20 vacant, unused offices and residences that it owns abroad. MPs have over the years recommended that Dirco should buy or build properties abroad instead of renting.
MPs were incensed to discover that the capital budget for renovations of some of the dilapidated properties was “inadvertently” diverted to the New York project in 2016.
Taxpayers’ money was spent to buy “a site” in New York City, but R118m later there is nothing to show for the expenditure.
This week MPs lamented the state of decay of some of the properties, which have been left unattended by successive administrations, describing the neglect as “a source of diplomatic embarrassment”.
In Havana, for instance, there is broken furniture with “wobbly” beds that are “not fit for human use”.
ANC MP Bekizwe Nkosi said the situation was “particularly acute” and required urgent attention.
In a report adopted this week, the parliamentary committee found “a litany” of vacant, unused government-owned land parcels and properties.
Other findings include that:
● Some missions are renting office and residential accommodation in countries where SA has vacant land parcels and buildings;
● Some of the government-owned properties in prime spots have been standing vacant for more than 20 years;
● Services such as security and cleaning are being provided in the vacant properties;
● Renting of properties for office and residential purposes by missions abroad is one of the main cost drivers of the Dirco budget, and the cost of the upkeep of vacant properties and land parcels abroad is contributing to recurring fruitless and wasteful expenditure, as found by the auditor-general;
● Some missions are still using a manual record-keeping system to register movable assets and some assets are not accounted for;
● Even though most missions have devised workable systems to manage cash transactions, others have to manually count and reconcile their cash books and rely on cash boxes to keep money; and
● There are no title deeds for some of the properties.
MPs said Dirco’s property management model was improper and in need of urgent restructuring, with skilled and experienced staff.
They said the neglect was due to “a causal link” to the structure of the property management unit at Dirco.
“The function is located under the department’s finance branch, and is not a standalone specialist division with appropriately qualified personnel,” reads the report.
“As a result, management of properties was not a priority in the finance branch.”
Among the recommendations, MPs want minister of international relations and cooperation Naledi Pandor to commission a professional assessment of all the properties and decide whether they should be renovated, rented out or sold.
Dirco spokesperson Clayson Monyela said the department will work with the portfolio committee to address the shortcomings that have been identified.
“We do have a turnaround strategy in terms of addressing some of the gaps that we ourselves have picked up in terms of property management” he said.
Pandor told parliament in March that the R118m scandal was an embarrassment for the country.
“The R118m did not buy anything,” she said. The matter is in court, as Dirco tries to recoup its money.
Pandor announced last week that SA will shut down 10 diplomatic missions in response to SA’s fiscal constraints, which have been worsened by the impact of the Covid19 pandemic. Pandor said the missions, which include embassies, high commissions and consulates, will be closed systematically during the 2021/2022 financial year.