Sunday Times

Losing the plots in foreign lands

Dirco properties rot as renovation millions mysterious­ly blown

- By ANDISIWE MAKINANA

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.

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 ?? Pictures: Facebook ?? Clockwise, Port of Spain, Helsinki and Belarus The department of internatio­nal relations & co-operation owns 14 land parcels and 20 unused offices and residences abroad.
Pictures: Facebook Clockwise, Port of Spain, Helsinki and Belarus The department of internatio­nal relations & co-operation owns 14 land parcels and 20 unused offices and residences abroad.
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