INLSA
Trizon Towers, formerly the Capital Towers Hotel, in central Pietermaritzburg.
The KwaZulu-Natal MEC for Health, Sibongiseni Dhlomo, is fuming that his department has been forking out well over R1.5 million a month for the past five years, for space and facilities in a building it doesn’t need.
The department has enough office space in the Natalia building in Pietermaritzburg, he says.
The government was committed to the balance of a nine-year lease with Square Peg Properties for Trizon Towers, formerly the Capital Towers Hotel, in central Pietermaritzburg, the standing committee on public accounts heard yesterday.
The lease was signed by former head of department Busi Nyembezi. Now the department is trying to get out of of the lease.
It emerged during the Scopa meeting that there was no need for the office space even when it was procured in October 2006.
Irregular
Dhlomo told committee members that he did not even want to know where the building was.
“I do not want to go there. It is clear that this building was not properly procured. It started in an irregular manner. We need to pull out all the stops to get (the lease) sorted out,” said Dhlomo.
Head of department Sibongile Zungu said the department had been investigating how the building had been procured.
The lease, which includes 8 percent annual increments, is set to expire on August 30, 2016. The department then has the option of renewal for another five years.
Taxpayers are forking out close to R1.2 million in monthly rent, R94 000 for water, R54 000 for cleaning, R61 000 for telephones, R71 000 for security services and R69 000 for parking.
The building is occupied by health department staff although in 2010 Dhlomo issued a directive that the staff should vacate the building and move back to Natalia.
Members of the committee have urged the department to work out ways of getting out of the lease within three months.
The chairman of the committee, Sipho Nkosi, said the department had huge financial responsibilities.
“It cannot afford to pay for things it does not need. Perhaps we need to talk to the office of the premier and Public Works to help us get out of this lease,” said Nkosi.
IFP MPL and former KZN premier Lionel Mtshali called for “high-level” intervention.
The National Health and Allied Workers Union (Nehawu) is among those who have criticised the lease for being wasteful expenditure.
Loyiso Mbele, acting head of department in 2008, said: “We have tried with the minister (Nkosi) to resolve this matter. There was no logic behind renting it because we have our own building at Natalia with enough offices – so much so that other government departments are using some of our offices for free.”
She said at the time that they had been trying to recover money and end the contract.
There had been attempts to get the Human Settlements Department to take over the office space last year, but the move had not materialised.
Nyembezi, and Peggy Nkonyeni who, at the time the contract was signed was MEC for health, are among the accused in the “Amigos” corruption trial.
Attempts to get comment from Rob Alexander, one of the shareholders in Square Peg Properties, were not successful last night.
