PUBLIC Works Minister Dean Macpherson declared his reform agenda "irreversible" as he unveiled investigations into billions lost through leasing failures, ghost employees, and tender corruption.
Speaking at a press conference on Wednesday, 10 June, in Cape Town ahead of his budget vote, Macpherson detailed how the department now faces a potential R50 million damages claim over a botched lease at 146 Lunnon Road in Tshwane, a building that has never been occupied despite a five-year, R69,5 million lease being concluded in 2023.
The minister revealed that a departmental investigation found officials created a "self-created emergency" to justify placing the National Prosecuting Authority's anti-corruption unit in the empty building, circumventing proper procurement processes.
Lawyers for the landlord have now demanded arbitration and damages exceeding R50 million.
"We cannot ask the public to trust us with billions in assets if we are not prepared to confront the failures and irregularities that have weakened this department," Macpherson declared, defending his strengthened oversight of the troubled Property Management Trading Entity (PMTE), whose overdraft has ballooned to nearly R4 billion.
The minister announced that a ghost employee audit has identified 60 individuals who were paid salaries for years without being employed by the department, with most cases in KZN.
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Three officials have already resigned after refusing to submit documentation for lifestyle audits.
In a decisive move, Macpherson confirmed he has withheld EPWP funding to eThekwini Municipality for 2026/27 following Auditor-General findings on ghost beneficiaries and irregular payments, warning that another metro may face similar action.
However, the minister highlighted progress alongside accountability measures.
The Independent Development Trust has turned around dramatically, with its order book growing by R2 billion to R6 billion and cash reserves tripling from near-bankruptcy.
The entity exceeded its 2025/26 target by completing 279 social infrastructure facilities.
Infrastructure South Africa will open Bid Window III for project preparation support on 27 July 2026, part of a R600 million commitment to accelerate project delivery.
"The choice is clear," Macpherson stated. "Either we allow weak systems and poor accountability to continue, or we rebuild this department around delivery and the public interest. I have made my choice."
