Latest news with #Macpherson
IOL News
10 hours ago
- Business
- IOL News
Public Works Minister Macpherson outlines key reforms and achievements after one year in office
Public Works and Infrastructure Minister Dean Macpherson briefs the media about his first year in the office. Image: Ayanda Ndamane / Independent Media Public Works and Infrastructure Minister Dean Macpherson marked his first anniversary in office by outlining his department's achievements and ongoing reforms, including updates on key investigations, property asset utilisation, anti-corruption efforts, and the Expanded Public Works Programme (EPWP). Speaking at Parliament on Wednesday ahead of his budget vote, Macpherson said the department has transitioned from being a passive custodian of 'broken buildings and stalled projects' to one that aims to deliver infrastructure and economic momentum. 'We came up with a bold vision: to turn South Africa into a construction site, and to anchor this vision to attract additional private sector infrastructure investment during the term of the seventh administration,' he said. Macpherson announced progress on four central focus areas over the past year: investigations into failed or mismanaged projects, repurposing public assets, implementing lifestyle audits and ghost employee detection, and reforming the EPWP. On investigations, Macpherson said two flagship probes were nearing completion. The first focused on the Telkom Towers in Pretoria, purchased for R600 million in 2015/16 to house the SAPS national head office, but had instead sat idle and vandalised. 'The draft investigation reveals a significant loss in terms of the value of the property owing to a series of damages to its infrastructure,' Macpherson said, adding that the report will be finalised by the end of July. 'Where individuals have been implicated, we will not hesitate to act.' The second investigation related to the PSA Oxygen Plant project, managed by the Independent Development Trust (IDT) for the Department of Health. It was meant to provide 60 hospitals with on-site oxygen facilities, but had 'instead become a cautionary tale'. 'Despite the fake-news campaign, AI-altered voice notes, and social media bots, which sought to discredit the investigation, members of the board and I fought on regardless,' Macpherson said. The report is expected by July 25 and will be handed to law enforcement agencies for prosecution. He added that lifestyle audits on senior IDT management were under way and that the incoming IDT board was expected to investigate lease irregularities and present a financial turnaround strategy. On repurposing public assets, Macpherson said his department was working to reduce state reliance on expensive leases by turning idle properties into productive sites. 'Government departments are in some cases paying R120 per square metre in private leases, while our buildings cost just R26 per square metre,' he said. Seventeen properties had been handed over for use as shelters for victims of gender-based violence and substance abuse, including two in Malmesbury. 'In the preceding five years, the department had only managed to transfer one,' he noted. Further examples included a property handed over in Nkandla for local economic development, and enhanced public access to properties such as the Castle of Good Hope and the Union Buildings, where displaced people now receive medical care, EPWP employment, and developmental support. He said plans were under way to restructure the department's Property Management Trading Entity into a revenue-generating asset portfolio. 'This will mean the state will finally start to generate revenue from its assets, either through co-development models or through investment into a property fund of A-grade property assets,' Macpherson said. He also confirmed a new partnership with AgriSA and AgriBiz to repair priority roads critical to agricultural logistics, with the Free State as the pilot site. The projects will fall under Strategic Integrated Project 11. Director-General Sifiso Mdakane provided insight into reforms under way within the department's internal systems, including digitisation and professionalisation. 'We have created a new branch that will be reporting directly to myself that will be leading ICT, which is the level at which we want to take ICT very seriously,' said Mdakane. 'Part of the other issues that we are going to be focusing on is the issue of e-procurement… because you realise the interaction of procurement with human beings directly, it causes a lot of problems.' Mdakane said the department had audited the skills of all senior managers and was restructuring to ensure it reflected its technical mandate. 'We should have strong skill sets that have technical people… economists, property specialists, developers, engineers, technologists, technicians… architects, quality surveyors. We're seeking to professionalise the department.' Macpherson also reported on lifestyle audits and ghost employee detection, saying audits had been launched for 400 high-risk officials. The first batch of 69 audits began in March and will be completed by September. 'Our Anti-Corruption Unit is currently auditing the PERSAL system across the department and EPWP to detect any fictitious employees drawing salaries without working,' he said. On the EPWP, the minister said he had completed a national listening tour across four provinces and identified systemic weaknesses, including political patronage, irregular recruitment, and poor municipal capacity. 'Too often, I have heard from participants and community members that the programme has become associated with gatekeeping,' he said. Transfers to non-compliant municipalities had been halted. Macpherson said the department would reposition the EPWP around transparency, longer projects, better compensation, skills training, and enterprise development. A new partnership with Harambee Youth Accelerator would focus on youth employment in renewable energy and maintenance. 'EPWP participants must exit the programme with more opportunity than when they first entered it… with a certificate, a skill, or a viable economic path, not just a stipend and a memory,' Macpherson said. Mameetse Masemola, acting head of Infrastructure South Africa (ISA), said her office had prioritised seven mega projects for packaging and investment, focusing on rail, ports, energy, and wastewater reuse. 'The highest decision-making structure internally… has approved six projects. These are blended finance projects and PPPs worth R40 billion,' Masemola said. 'They will be submitted to the National Treasury through the Budget Facility for Infrastructure to get additional fiscal allocation to the tune of R20 billion. The rest will be leveraged from the private sector.' Masemola also confirmed that the second edition of the Construction Book had been released, listing R268 billion worth of infrastructure projects already funded and ready to go to market. ISA had also embarked on an Adopt-a-Municipality pilot programme across four provinces, targeting stable and well-run municipalities. 'We're going to be helping them with preparing and packaging projects, raising funding, and also providing technical implementation support,' she said.
TimesLIVE
11 hours ago
- Business
- TimesLIVE
400 'high-risk' public works officials face lifestyle audits, says Macpherson
Public works minister Dean Macpherson says his department is this year extending the conduct of lifestyle audits on '400 high-risk officials' after completing those on 48 senior managers in the 2022/23 financial year. Presenting his budget vote in parliament on Wednesday, he said his department began in March 2025 to focus on the lifestyles of 400 officials in various divisions such as finance, ICT, procurement, property leases and other related projects. The department of public works, which among others is responsible for managing property leases of other government departments, runs a budget of more than R7bn a year. But its procurement of property leases has often been mired in allegations of corruption and other financial irregularities in which some of its officials have been implicated. Macpherson told MPs they were also clamping down on the 'ghost workers phenomenon' in his department. 'Trust in public institutions depends on the public's belief that we hold ourselves accountable for the work we do. One of these mechanisms is through lifestyle audits,' he said. 'On lifestyle audits, in 2022/23 we completed audits on 48 senior managers. We have now launched a wider process, focusing on 400 high-risk officials across finance, ICT, procurement, leases and projects.
The Citizen
11 hours ago
- Business
- The Citizen
Macpherson vows action on failed projects and EPWP reform
Minister to meet families of George collapse victims with final report in hand Public Works and Infrastructure Minister Dean Macpherson has vowed to restore public trust in his department by taking decisive action against mismanagement, repurposing idle state assets, and reforming the Expanded Public Works Programme (EPWP). Marking his first year in office at a media briefing ahead of his budget vote on Wednesday, Macpherson outlined major investigations into failed state projects. This included the R600 million Telkom Towers deal and a collapsed oxygen plant initiative for hospitals. 'We wanted to investigate some of the most glaring examples of waste, mismanagement, and dysfunction. 'The draft investigation reveals a significant loss in terms of the value of the property owing to a series of damages to its infrastructure, and whether the project is still viable,' said Macpherson. Telkom Towers under scrutiny He confirmed that investigations into the Telkom Towers project and the PSA Oxygen Plant, managed by the Independent Development Trust (IDT), are expected to be completed by late July 2025. 'This was meant to be a flagship health infrastructure initiative built with donor funds, providing 60 hospitals with on-site oxygen capacity. 'Instead, it became a cautionary tale, with the draft report confirming many of my suspicions,' said the minister. Lifestyle audits are also underway for 400 high-risk officials, alongside a physical audit of the department's payroll system to root out ghost employees. ALSO READ: WATCH: Macpherson not deterred by 'political pressure or death threats' over R800m oxygen tender EPWP overhaul Macpherson also announced major reforms to the EPWP. 'Our view is that EPWP must be refocused around transparency, training and opportunity,' he said. According to Macpherson, planned changes include: Longer project durations, allowing for real skill development; Fairer compensation; Enterprise development and support for EPWP graduates starting small businesses; Monitoring the impact of constructed assets and their value to communities; Pilot biometric attendance systems to improve accountability and recruitment. The department has halted transfers to municipalities that fail to meet audit and financial control standards. ALSO READ: Macpherson's IDT appointments face urgent court bid State assets to generate revenue Macpherson revealed that unused state-owned properties are being repurposed for public benefit. Since taking office, 17 properties have been handed over for use as shelters for victims of gender-based violence and substance abuse. 'In the previous five years, only one such transfer was made,' he said. Plans are also in place to restructure state property assets into an 'investable portfolio' to attract private sector investment. ALSO READ: Macpherson hands over 10 properties in Mpumalanga for GBV shelters George building collapse Macpherson confirmed he will meet with the families of the 34 workers who died in the George building collapse on 19 July, following the postponement due to former deputy president David Mabuza's funeral. 'The collapse was entirely preventable. Accountability cannot be optional when lives are lost due to human error,' he said. The Engineering Council of South Africa has finalised a report detailing regulatory and professional failings, which will be handed to law enforcement. 'I assure the public […] we will do what is right. People will be held accountable,' Macpherson said. NOW READ: Zikalala slams 'spurious' allegations about R45m IDT lease deal, heads to Public Protector
IOL News
11 hours ago
- Business
- IOL News
Public Works Minister Macpherson outlines key reforms and achievements after one year in office
Public Works and Infrastructure Minister Dean Macpherson briefs the media about his first year in the office. Image: Ayanda Ndamane / Independent Media Public Works and Infrastructure Minister Dean Macpherson marked his first anniversary in office by outlining his department's achievements and ongoing reforms, including updates on key investigations, property asset utilisation, anti-corruption efforts, and the Expanded Public Works Programme (EPWP). Speaking at Parliament on Wednesday ahead of his budget vote, Macpherson said the department has transitioned from being a passive custodian of 'broken buildings and stalled projects' to one that aims to deliver infrastructure and economic momentum. 'We came up with a bold vision: to turn South Africa into a construction site, and to anchor this vision to attract additional private sector infrastructure investment during the term of the seventh administration,' he said. Macpherson announced progress on four central focus areas over the past year: investigations into failed or mismanaged projects, repurposing public assets, implementing lifestyle audits and ghost employee detection, and reforming the EPWP. On investigations, Macpherson said two flagship probes were nearing completion. The first focused on the Telkom Towers in Pretoria, purchased for R600 million in 2015/16 to house the SAPS national head office, but had instead sat idle and vandalised. 'The draft investigation reveals a significant loss in terms of the value of the property owing to a series of damages to its infrastructure,' Macpherson said, adding that the report will be finalised by the end of July. 'Where individuals have been implicated, we will not hesitate to act.' The second investigation related to the PSA Oxygen Plant project, managed by the Independent Development Trust (IDT) for the Department of Health. It was meant to provide 60 hospitals with on-site oxygen facilities, but had 'instead become a cautionary tale'. 'Despite the fake-news campaign, AI-altered voice notes, and social media bots, which sought to discredit the investigation, members of the board and I fought on regardless,' Macpherson said. The report is expected by July 25 and will be handed to law enforcement agencies for prosecution. He added that lifestyle audits on senior IDT management were under way and that the incoming IDT board was expected to investigate lease irregularities and present a financial turnaround strategy. On repurposing public assets, Macpherson said his department was working to reduce state reliance on expensive leases by turning idle properties into productive sites. 'Government departments are in some cases paying R120 per square metre in private leases, while our buildings cost just R26 per square metre,' he said. Seventeen properties had been handed over for use as shelters for victims of gender-based violence and substance abuse, including two in Malmesbury. 'In the preceding five years, the department had only managed to transfer one,' he noted. Further examples included a property handed over in Nkandla for local economic development, and enhanced public access to properties such as the Castle of Good Hope and the Union Buildings, where displaced people now receive medical care, EPWP employment, and developmental support. He said plans were under way to restructure the department's Property Management Trading Entity into a revenue-generating asset portfolio. 'This will mean the state will finally start to generate revenue from its assets, either through co-development models or through investment into a property fund of A-grade property assets,' Macpherson said. He also confirmed a new partnership with AgriSA and AgriBiz to repair priority roads critical to agricultural logistics, with the Free State as the pilot site. The projects will fall under Strategic Integrated Project 11. Director-General Sifiso Mdakane provided insight into reforms under way within the department's internal systems, including digitisation and professionalisation. 'We have created a new branch that will be reporting directly to myself that will be leading ICT, which is the level at which we want to take ICT very seriously,' said Mdakane. 'Part of the other issues that we are going to be focusing on is the issue of e-procurement… because you realise the interaction of procurement with human beings directly, it causes a lot of problems.' Mdakane said the department had audited the skills of all senior managers and was restructuring to ensure it reflected its technical mandate. 'We should have strong skill sets that have technical people… economists, property specialists, developers, engineers, technologists, technicians… architects, quality surveyors. We're seeking to professionalise the department.' Macpherson also reported on lifestyle audits and ghost employee detection, saying audits had been launched for 400 high-risk officials. The first batch of 69 audits began in March and will be completed by September. 'Our Anti-Corruption Unit is currently auditing the PERSAL system across the department and EPWP to detect any fictitious employees drawing salaries without working,' he said. On the EPWP, the minister said he had completed a national listening tour across four provinces and identified systemic weaknesses, including political patronage, irregular recruitment, and poor municipal capacity. 'Too often, I have heard from participants and community members that the programme has become associated with gatekeeping,' he said. Transfers to non-compliant municipalities had been halted. Macpherson said the department would reposition the EPWP around transparency, longer projects, better compensation, skills training, and enterprise development. A new partnership with Harambee Youth Accelerator would focus on youth employment in renewable energy and maintenance. 'EPWP participants must exit the programme with more opportunity than when they first entered it… with a certificate, a skill, or a viable economic path, not just a stipend and a memory,' Macpherson said. Mameetse Masemola, acting head of Infrastructure South Africa (ISA), said her office had prioritised seven mega projects for packaging and investment, focusing on rail, ports, energy, and wastewater reuse. 'The highest decision-making structure internally… has approved six projects. These are blended finance projects and PPPs worth R40 billion,' Masemola said. 'They will be submitted to the National Treasury through the Budget Facility for Infrastructure to get additional fiscal allocation to the tune of R20 billion. The rest will be leveraged from the private sector.' Masemola also confirmed that the second edition of the Construction Book had been released, listing R268 billion worth of infrastructure projects already funded and ready to go to market. ISA had also embarked on an Adopt-a-Municipality pilot programme across four provinces, targeting stable and well-run municipalities. 'We're going to be helping them with preparing and packaging projects, raising funding, and also providing technical implementation support,' she said.
TimesLIVE
11 hours ago
- Business
- TimesLIVE
400 'high risk' public works officials face lifestyle audits, says Macpherson
Public works minister Dean Macpherson says his department is this year extending the conduct of lifestyle audits on '400 high-risk officials' after completing those on 48 senior managers in the 2022/23 financial year. Presenting his budget vote in parliament on Wednesday, he said his department began in March 2025 to focus on the lifestyles of 400 officials in various divisions such as finance, ICT, procurement, property leases and other related projects. The department of public works, which among others is responsible for managing property leases of other government departments, runs a budget of more than R7bn a year. But its procurement of property leases has often been mired in allegations of corruption and other financial irregularities in which some of its officials have been implicated. Macpherson told MPs they were also clamping down on the 'ghost workers phenomenon' in his department. 'Trust in public institutions depends on the public's belief that we hold ourselves accountable for the work we do. One of these mechanisms is through lifestyle audits. 'On lifestyle audits, in 2022/23 we completed audits on 48 senior managers. We have now launched a wider process, focusing on 400 high-risk officials across finance, ICT, procurement, leases and projects. 'The first batch of 69 audits began in March and will be finalised by September. The next batch will follow from October 2025 to March 2026, and the remainder by March 2027. 'These audits are being conducted independently, in partnership with the Special Investigating Unit, and include asset verification. On the ghost employee phenomenon, our anti-corruption unit is auditing the PERSAL system across the department and EPWP to detect any fictitious employees drawing salaries without working. With the help of interns, we are conducting physical verification, ensuring that every person on the payroll exists, works and contributes. This is painstaking work, but it is necessary. We must ensure that we have a competent and present workforce to achieve our goals.' Macpherson reported that the probe into the controversial purchase of the rundown Telkom Towers in Pretoria to house the headquarters of the SAPS at a cost of R600m was nearing completion. 'It has not yielded any returns. Instead, we continue to pay security to prevent further vandalism. The draft investigation reveals a significant loss in terms of the value of the property owing to a series of damages to its infrastructure, and whether the project is still viable. The report should be finalised by the end of July, and where individuals have been implicated, we will not hesitate to act.'
