The government has about 81,000 properties in total, but only 56,000 have had assessments done to estimate maintenance costs. The current backlog will cost R30-billion — money the department doesn’t have. The longer it takes to clear the backlog, the more it will cost as buildings grow older and their conditions deteriorate.

The departments with the biggest maintenance backlogs are those responsible for the country’s safety and security:

Buildings used by the South African Police Services require R8.8-billion to maintain and repair.
Those used by Correctional Services, including prisons, require R8.4-billion.
The Department of Justice and Constitutional Development, including court buildings throughout the country, requires R4.6-billion.
The Department of Defence requires R4.1-billion.
Of the government’s 81,000 buildings, only 1% are in excellent condition. 13% are in a good condition, 77% in fair condition, and 9% in poor or very poor condition.

Written by GroundUp and The Outlier and republished with permission. The original article can be found here.

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The department and the South African Police Service (SAPS), the National Treasury and the Construction Industry Development Board (CIDB) agreed to work together to bring an end to criminal disruption at construction sites.

The Durban Declaration was signed by Public Works and Infrastructure Minister Dean Macpherson, Deputy Minister of Police Cassel Mathale, Deputy Minister of Finance Ashor Sarupen and CIDB chairperson Khulile Nzo, at the end of the National Construction Summit on Crime-Free Construction at the Inkosi Albert Luthuli International Convention Centre on Tuesday afternoon.

“The Durban Declaration marks a historic partnership and commitment between different sectors of society to work together to bring an end to the so-called construction mafia and ensure that infrastructure projects continue uninterrupted.

“It binds sectors to implement certain interventions to discourage criminality at construction sites, reduce opportunities for disruptions to occur, and hold the guilty accountable,” Macpherson said.

“From the moment I was appointed as Public Works and Infrastructure Minister, it was clear to me that unless we bring an end to these stoppages at infrastructure projects, we would never be able to attract additional investment which will grow our economy and create jobs.

“As job creation is the Government of National Unity’s key priority, it was therefore imperative to address the issue head-on, and the signing of the declaration today is a fulfilment of this commitment,” he said.

The Durban Declaration proposes a series of interventions to end the disruptions at construction sites to be implemented over the course of the next year, including:

• Strengthening the legislation governing the construction industry

• Implementing appropriate policies for the development of the construction industry

• Improving the data and reporting systems

• Enhancing the rapid response to lead to arrests for extortion on construction sites and prosecutions

• Developing standard frameworks and guidelines for embedding social facilitation in project planning and implementation

• Providing for the systematic and structured development of emerging enterprises and skills development

• Establishing collaborative platforms for industry stakeholders to share best practices

• Collaborate on solutions to the problems faced by the construction industry

“By the time the next National Construction Summit takes place next year, I look forward to reporting that meaningful progress was achieved in these focus areas and that there has been a significant decline in the number of construction disruptions reported.

“I have no doubt that by working together, we will be able to bring an end to the construction mafia and build a better South Africa. Together, let’s build South Africa,” Macpherson said.

He also called on the police to take stronger action to arrest those found guilty of disrupting infrastructure projects.

Macpherson said government cannot negotiate with criminals in order to be able to build the essential roads, dams, schools and hospitals that people need.

Macpherson said it is crucial to end disruptions at construction sites, if the vision to turn South Africa into a construction site is to be realised.

“… We cannot be negotiating with criminals to allow construction projects to continue. Not only do disruptions to construction sites cost contractors, businesses and the State millions, but it also delays essential services to vulnerable communities,” the Minister said.

He said disruptions at construction sites result in delays in sanitation, water, schools, hospitals and police stations, which serve millions of people.

“We simply cannot continue to allow this to happen. Furthermore, disruptions to construction sites chase away private-sector investment. No business wants to build homes, factories or offices under these conditions.

“This means fewer jobs are created at a time when unemployment is at historic levels. We will never be able to improve the lives of our people when this lawlessness continues. The action required to bring an end to criminal syndicates at construction sites may not be easy.

“It will require that we work closely together with the private sector and the police to promptly identify and address issues experienced,” Macpherson said.

Macpherson commended the Minister of Police, Senzo Mchunu, the National Police Commissioner, General Fannie Masemola, and KwaZulu-Natal Provincial Commissioner, Lieutenant-General Nhlanhla Mkhwanazi, for the work they have done over the past few months to bring a new sense of urgency to address the issue of the construction mafia head-on.

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The Department of Public Works and Infrastructure (DPWI), in collaboration with the South African Police Service (SAPS) and the Construction Industry Development Board (CIDB), will host the summit at the Durban International Convention Centre in KwaZulu-Natal on 19 November.

Public Works and Infrastructure Minister, Dean Macpherson, has expressed his strong commitment to addressing crime at construction sites across the country.

“This is a fulfilment of a promise I made shortly after taking office to host a summit to deal with construction site stoppages nationwide.

“Construction sites should be places where workers build not just structures, but also a sense of safety, respect and trust. Unfortunately, crime has been a persistent challenge in the sector, undermining productivity, escalating costs and putting lives at risk,” Macpherson said.

The Minister committed to working with industry stakeholders to find solutions for safer work environments and underscored the government’s dedication to eliminating crime, ensuring that workers return home safely each day.

The SAPS will also play a key part in the stakeholder engagement as law enforcement plays a critical role in maintaining security. Accordingly, Police Minister Senzo Mchunu is expected to address the summit to reinforce the role of the police in combatting crime in the sector.

Finance Minister Enoch Godongwana is also expected to speak at Tuesday’s summit. Other Speakers will include the Premier of KwaZulu-Natal and the Mayor of eThekwini.

The CIDB, a key partner in ensuring the professionalism and development of the construction industry, is equally dedicated to creating a conducive environment for effective delivery of infrastructure.

Bongani Dladla, CEO of the CIDB, highlighted the importance of industry-wide collaboration in promoting security and efficiency in construction.

“We’re looking forward to playing an active role in this summit as we strongly believe that the construction industry is vital to our nation’s growth, and addressing crime is essential to protecting both assets and the lives of those who build our future. The CIDB is committed to supporting initiatives like the National Construction Summit to set new safety standards and collaborate with the DPWI, law enforcement, and industry partners to make construction sites safer and more efficient,” said Dladla.

The summit will feature a series of expert-led discussions on legislation and policy, security and law enforcement, community engagement, empowerment, skills development and other strategic topics to equip stakeholders with the tools needed to combat crime on construction sites.

It will also provide an opportunity for networking and forging partnerships aimed at improving site security and promoting the safety of workers.

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According to Macpherson, the report should detail who is to blame and what will be the best solution moving forward for the Telkom Towers to limit further wastage of taxpayer money.

Earlier this month, the Minister conducted an oversight inspection at the Telkom Towers.

The building was procured to serve as the South African Police headquarters in 2016 to the tune of nearly R700 million. Officials say to date, over R200 million has been spent on renovations and other services but the building remains empty due to lapses.

Addressing the media in Cape Town on Wednesday, Macpherson said in the coming weeks, a tender for a second independent investigation will be released to investigate leases which have been established by the Department of Public Works and Infrastructure to ensure that these leases were completed within the confines of the law and that the state is paying market-related prices for each.

“Shortly after my appointment, we initiated an investigation into an R300 million IT security breach that spans a decade. The investigation builds on the work Deputy Minister Sihle Zikalala started earlier this year when vulnerabilities were discovered in the department’s Information and Technology Systems,” the Minister said.

Macpherson said preliminary reports since the extent of the security breach was found suggest that the amount of money stolen over the period confirms the seriousness of the matter.

Macpherson has further authorised the department’s legal services to assist the Special Investigating Unit (SIU) with litigation at the Special Tribunal to recover up to R20 million against Kroucamp Plumbers.

“This case involves tenders received by Kroucamp Plumbers in 2015 and 2018, where procurement processes were found to be unlawful and unconstitutional.

“The SIU discovered that payments were made to officials in our department amounting to over R300 000, and these actions are indicative of corruption that we are determined to root out,” the Minister said.

Macpherson said his goal is to make the department play a central role in using public assets for the public good and to help turn South Africa into a construction site which will ignite economic growth and create jobs.

“Over the past eight weeks, I believe we have started to lay the foundation for the work to begin to see cranes in the sky all over South Africa,” Macpherson said.

Central to the department’s strategy for increased infrastructure investment is to see the expansion and the capacitation of Infrastructure South Africa (ISA).

“We want to ensure that ISA functions as the single point of entry for all priority infrastructure projects, streamlining processes and reducing inefficiencies that have previously hampered project delivery,” Macpherson said.

This will not only improve efficiency but also ensure that the department prioritise projects with the greatest economic and social impact.

“And, this will increase investor confidence in public infrastructure projects, knowing that where Infrastructure South Africa is involved, construction projects are completed on time and within budget.

“We are accelerating broader budget reforms by collaborating with the National Treasury to streamline the Public-Private Partnership (PPP) process and establish an Infrastructure Fund that reports directly to the National Treasury.

“We are diversifying funding sources for infrastructure projects by focusing on PPPs, blended finance, and social infrastructure programmes. ISA will work closely with the National Treasury to direct investments toward projects with the highest GDP [gross domestic product] impact and job creation potential,” the Minister said.

The Minister said as the department pushes forward with reforms to ignite infrastructure investment, it was important that the department get its own house in order to ensure that it delivers on the core mandate.

“Accountability and transparency should be at the core of everything we do, while we work to eliminate corruption and abuse in all spheres of our organisation.”

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In a statement, Minister Macpherson said they have jointly agreed that an urgent meeting is required in every province, with all the respective MECs and the Ministers in the Law Enforcement cluster. MacPherson and Meyer have indicated that should be held in KwaZulu-Natal.

The decision follows a meeting between Macpherson and Meyer, during which Meyer presented a report detailing the resurgence of construction mafia activities in KwaZulu-Natal.

“Shortly after I was appointed as Minister of Public Works and Infrastructure, I vowed to deal decisively with the construction mafia and to restore the rule of law at construction sites across the country.

“During a recent oversight visit to the uMkhomazi water project, I learnt how an altercation with the construction mafia led to the death of three people and the assault of another. This is simply unacceptable. We will never be able to attract additional infrastructure investment, and turn the country into a construction site, while this lawlessness continues,” Macpherson said.

The Minister stated it is imperative to host the meeting with Public Works MECs across the country, along with the Ministers in the Law Enforcement cluster to develop a comprehensive plan to turn the tide against the construction mafia “to not only attract additional infrastructure investment but protect the lives of our people.”

Beyond addressing the construction mafia, the Macpherson and Meyer discussed the potential reform of the Expanded Public Works Programme (EPWP), to ensure it benefits recipients and contributes to job creation.

The two further explored how national and provincial governments could collaborate to expand infrastructure development in KwaZulu-Natal.

“KwaZulu-Natal is a province of such immense potential, and I therefore look forward to working closely with the MEC to unlock economic growth and job creation in the province,” he said.

The Minister added that he will be meeting with MECs and mayors in other provinces in the week ahead, to determine how they may work together to improve the lives of South Africans

“It is only through working together towards a common vision that we can unlock South Africa’s potential. Let’s Build South Africa,” the Minister said.

Meanwhile, the KwaZulu-Natal Provincial Reaction Task Team established to curb construction mafia related activities has arrested five suspects for intimidation and disturbance of infrastructure. The five were apprehended at uMsunduzi on Saturday, 24 August.

Police responded to reports of a group of people who were disturbing activities at a construction site where a bridge is under construction in uMsunduzi. On arrival at the scene, police arrested the five suspects and they were duly charged for intimidation as well as the disturbance of a construction site.

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The Minister emphasised “from my very first day in office, I have been clear that the South African government would not be negotiating with criminals such as the construction mafia but would rather work with all role-players to address this scourge in our communities to safeguard our infrastructure projects.”

He added, “I therefore welcome the joint effort by the private and public sectors in Cape Town and look forward to similar actions being replicated nationwide.”

The City of Cape Town, Atterbury Properties, Old Mutual and other players made a joint statement of intent to join forces in the fight against criminals seeking to profit from developmental projects.

The Minister further added that “to eradicate the rise of lawlessness at construction sites across the country, it will require that we all work together, and make use of new and innovatory approaches to fight crime.”

The Minister intends to meet with both the Mayor of the City of Cape Town, Geordin Hill-Lewis and eThekwini Municipality Mayor, Cyril Xaba. He intends to discuss how national and local government could work together in addressing the issue of construction mafias; a topic also discussed with the City of Tshwane Mayo, Cilliers Brink. The Minister and Mayor Brink visited the Telkom Towers complex in Pretoria, where the Minister announced he would commission an inquiry into the purchase of the property.

The Minister called on the construction sector to play “a bigger and more important role in growing our country’s economy.” He stated this could only be possible “if we ensure our [construction] sites are safe and public and private sector investments are secure from lawlessness and extortion,” he said in his statement on Monday.

Minister MacPherson hopes that working together, his department and the various metropolitan cities shall be able “to turn the tide against the construction mafia in South Africa,” ensuring they no longer operate with impunity. The DPWI will work alongside the South African Police Service (SAPS) and the South African Revenue Service (SARS) to identify criminal elements and ensure they are investigated and brought to justice.

“It is imperative that to grow the economy and to create jobs, we turn South Africa into a construction site, which can only take place if we break the back of the construction mafia.”

The construction mafia is estimated to cost the economy R17 billion per annum. Special Investigating Unit (SIU) spokesperson Kaizer Kganyago in December last year said, “Research documents published during the last two years have revealed the impact of construction sector mafia on construction projects and investment in the sector. In the period leading up to 2022, up to R63 billion worth of projects were reported, and delayed or cancelled as a result of the extortion tactics and disruptions posed by construction mafia.”

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Macpherson told the media he is going to ask for an investigation, and he believes that the question should be asked whether it was at all necessary to purchase the premises for such a large sum at the time.

Macpherson and Pretoria’s mayor, Cilliers Brink, on 2 August visited the Telkom Towers building, which was bought and renovated by the Department of Public Works for almost R900 million eight years ago. R250 million was then spent on its renovation, but six months ago, the building had to be evacuated after Solidarity responded to complaints from members of the SAPS and consequently demanded an inspection by the Department of Employment and Labour. The building was then declared unfit for human occupation.

According to Johan Böning, head of occupational health and safety at Solidarity, the building has not been in regular use since then, and SAPS members are now scattered all over and housed in other buildings, while some apparently have no office space and therefore they have to stay at home.

“It is disheartening that so much public funding has been spent to purchase and renovate the building, [and it has been] vandalised and occupied by criminal elements, thereby creating an additional burden for the City of Tshwane,” Macpherson said. “We simply cannot spend more than eight years trying to establish how to secure public property while it deteriorates into lawlessness.”

Macpherson said the investigation will need to determine why the Department of Public Works and Infrastructure bought the Telkom Towers and if it was necessary; what the process was which was followed for contracts to be appointed and whether the contractors were fit for purpose; whether any officials should be held accountable for the purchase and renovation of the building; if there’s a possibility of reclaiming money from contractors; what can be done with the building going forward; and what steps can be taken to avoid the situation from occurring again.

Böning said he was impressed that Minister Macpherson was able to find the time to visit the SAPS building so soon after his appointment to this important portfolio.

“Hopefully the new minister is here to bring change. Like him, we also want to know what irregularities took place here and who should be held responsible for it all. Apparently very little, if any, renovation has been done at Telkom Towers since the building was vacated in February. We as the public will only be able to expect better service from SAPS members if they also feel their own workplace is safe and neat,” Böning said.

“Solidarity is also aware of other SAPS sites that have been badly neglected, and we have asked the minister to pay attention to them as well,” the trade union said.

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A statement yesterday (Thursday 11 July) in the wake of so-called “revelations” of at least R300 million lost to cyber theft at the Department of Public Works and Infrastructure (DPWI) over a 10 year period has it an SSA (State Security Agency) investigation is “ongoing”. This comes over two months after then DPWI minister Sihle Zikalala said a multi-disciplinary team, including the SSA, was busy with “a full forensic investigation” on the illegal “siphoning off” of departmental funds.

Patricia de Lille, now Tourism Minister and former incumbent of the public works and infrastructure portfolio, was quick to respond to her successor Dean MacPherson’s announcement of the apparent massive cybercrime.  She will meet him and “request a copy of the report [relating to the alleged theft] for the period relevant to my time at DWI”. She notes during her DPWI tenancy R253 million was recovered relating to lease overcharging adding where corruption was found “I acted swiftly,” reporting matters to the Auditor General (AG) and the Special Investigating Unit (SIU).

According to Ntshaveni the DPWI investigation is “still ongoing” with teams “urged to work with speed” to finish “without compromising the thoroughness of the investigation”.

On government and cyber security she noted “the SSA continues to provide support and advice to government departments on cyber security”. The agency is finalising a consolidated assessment on government’s cyber security strengths, and initiatives are underway to address any weaknesses found in the system. The report, once completed, will be submitted to the National Security Council (NSC) for further processing and direction, her statement reads in part.

MacPherson, the GNU (Government of National Unity) DPWI minister, said it was important to let South Africans know what happened and “what we are doing about it”. He is reported as saying “I cannot discount the possibility of collusion between officials and criminals in this prolonged period of theft. It is clear that we need better financial controls which I have said to the department are a matter of urgency”.

To date the DPWI investigation has seen four officials, three in senior management positions, suspended and 30 laptops confiscated.

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This revelation came after a recent incident in May 2024, which resulted in the theft of R24 million from the department. The Minister noted that this led to a full joint investigation by the Hawks, South African Police Service, the State Security Agency, and experts from the cyber security industry.

Promising to tackle the cyber threat to the department, the minister stated it had become evident “that the department has been a soft target and playground for cyber criminals for over a 10 year period and this should have been picked up a lot earlier.”

The Minister emphasized the importance of alerting the public, adding “I felt it important to let South Africa know what has happened and what we are doing about it. I cannot discount the possibility of collusion between officials and criminals in this prolonged period of theft. It is clear that we need better financial controls which I have said to the department are a matter of urgency.”

The attack further resulted in the department having to shut off its payment system, causing significant delays in payments. The minister is quoted as saying, “We want to put a stop to this immediately because we cannot allow our department to be subjected to unchecked looting. This is money that could have been spent on our infrastructure drive to improve the lives of South Africans.”

The investigation has thus far resulted in the suspension of four department officials, and the seizure of 30 laptops. Three of the suspended officials were revealed to be from the department’s senior management. Determined to root out corruption in the department, the Minister welcomed the precautionary suspension of the four officials. He added, “There is simply no place for corruption in this department.”  The department has further committed to strengthening its cyber security defenses to prevent further incidents.

Cyber attacks of government systems is not a new phenomenon. In July 2021 Transnet was forced to shut down and declared force majeure amid a cyber-attack. The incident was described as “an act of cyberattack, security intrusion and sabotage”, which crippled the ports of Durban, Ngqura, Gqeberha, and Cape Town. Ultimately revealed to be a ransomware attack, Transnet was able to restore order and resume operations after six days, on 28 July 2021.

In the aftermath of the hack, Transnet remained tight lipped around the details of the incident, citing national security concerns. Bloomberg later attributed the hack to a known ransomware strain of “Death Kitty”, believed to have originated from Eastern Europe. The timing of the attack in relation to the July 2021 riots left many questioning if the events were related.

A few months later, on 6 September 2021, another series of cyber attacks targeted the Department of Justice and the South African Space Agency, which left the systems encrypted and inaccessible. No demands were received by either department.

More recently, in August 2023, the Department of Defence found itself the target of a cyberattack, which resulted in the theft of 1.6TB of South African National Defence Force (SANDF) data. The DoD and SANDF initially denied there had been an attack, with the SANDF spokesperson dismissing the incident as “fake news”.

Responsibility for the attack was claimed by the Snatch group, who stated that they sought to “[expose] the current government as totally corrupted, involved in international illegal arms trade. It reveals illegal traffic on the African continent and all interested parties from other countries, mainly from the United States.” The SANDF hack laid bare the extent to which South Africa was vulnerable to cyber-attacks.

With South Africa increasingly becoming a playground for hacker groups, and this recent revelation from the DPWI, many are asking if the new administration and its departments are equipped and prepared to prevent and mitigate these risks.

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