By Loxion News Staff Writer
The Gauteng Department of Cooperative Governance and Traditional Affairs (COGTA) MEC, Jacob Mamabolo, has been forced to cancel a wasteful R2.9 million per month lease at 55 Fox Street after sustained pressure from the Democratic Alliance (DA) in Gauteng.
According to the DA’s Gauteng Spokesperson for Infrastructure Development, Khathutshelo Rasilingwane MPL, the cancellation follows months of DA scrutiny over the Department of Education’s continued payment for an unusable building — a lease that has drained taxpayers of over R175 million without fulfilling its purpose.
“This is a victory for accountability and responsible governance,” said Rasilingwane. “Taxpayers’ money should never be wasted on buildings that cannot be used.”
A Costly and Unsafe Building
The five-year lease at 55 Fox Street, costing R2.9 million per month, was signed to accommodate the Department of Education. However, much of the building’s lifespan under lease was marred by Occupational Health and Safety (OHS) failures — including non-functional lifts and broken ablution facilities — which rendered the building unfit for occupation.
Despite repeated warnings and employee complaints, officials continued to pay rent for the building even as workers were unable to perform their duties safely.
Earlier this year, the DA’s attempts to conduct an oversight inspection of the building were blocked, raising further questions about transparency within the department.
Gauteng’s Expensive Office Rentals
In a broader investigation, the DA revealed through questions posed in the Gauteng Provincial Legislature (GPL) that the provincial government spends a staggering R34 million monthly — R408 million annually — on rental properties, while several state-owned buildings stand vacant.
MEC Mamabolo defended the 55 Fox Street lease, claiming the building was deemed OHS-compliant at the time of approval based on documentation provided. However, he failed to confirm whether a physical inspection had ever been conducted to verify the building’s safety before occupation.
DA Calls for Use of State-Owned Properties
The DA has urged MEC Mamabolo to prioritise repairs and readiness of the government-owned 78 Fox Street building, which could accommodate up to 12 provincial departments. This, the DA argues, would save Gauteng tens of millions in unnecessary leasing costs.
“The DA will continue to monitor all wasteful lease agreements across the province to ensure that every rand of public money is used to improve service delivery for Gauteng residents,” Rasilingwane affirmed.
