R700 million South African Police headquarters remains completely empty
The Portfolio Committee on Public Works and Infrastructure has expressed its frustration over a continued failure by the South African Police Service (SAPS) to occupy the Telkom Towers complex.
The 24-storey building Pretoria complex, purchased for R700 million in 2016 to serve as the SAPS headquarters, was evacuated in February 2024 after being declared unfit for human habitation.
The Auditor-General’s office further revealed that only one of the nine buildings in the complex had ever been used by SAPS.
Former Police Minister Bheki Cele had revealed that he had been working from home for four years due to the state of the Telkom Towers building, which he referred to as the “Terrible Towers”.
On 16 July, the Department of Public Works and Infrastructure (DPWI), along with the Property Management Trading Entity (PMTE), told the committee that SAPS has yet to fully occupy the Telkom Towers precinct.
The committee heard that the property has deteriorated significantly, with items missing or stolen, largely due to SAPS not taking full occupation and providing security as the user department.
The DPWI’s PMTE appointed a Total Facilities Management Contractor (TFMC), Sevvest, in January 2024 at a cost of approximately R2 million per month over 36 months.
The contract was designed to support SAPS’s tenancy and has resolved all six prohibition notices.
However, a new occupation certificate cannot yet be issued, as critical work, such as completing the fireman’s lift, installing fire seals, and resolving outstanding HVAC and fire extinguisher issues, was left unfinished during a R200 million upgrade project by the DBSA in 2022.
This outstanding work, initially estimated to cost R22 million, is now being funded and implemented through the TFMC and is expected to be completed by October 2024.
However, in October 2024, the Police Ministry had submitted a letter indicating an intention to relinquish the option to occupy the facility, which is still under consideration between the ministries.
Frustration from MPs
The committee expressed its frustration about the protracted delays and the large expenditure of public funds on an unused facility.
“It’s an awkward situation where there is a contract in place, yet the tenants are not utilising the building,” said DA MP Edwin Bath.
ANC MP Thandi Makasi said that “there should be no building standing idle while taxpayers’ money is being spent. If SAPS cannot occupy it, then another government department should be considered.”
“We need a dedicated project manager who can provide the committee with tangible updates to bring this matter to completion,” said ActionSA MP Malebo Kobe.
Committee members expressed disappointment that, even within the next six months, there is no certainty of progress in resolving the Telkom Towers complex impasse.
They noted that close to R1 billion has already been spent on the project, with no return on that investment due to non-occupation.
It questioned the ongoing R2 million monthly facilities management contract while the building remains largely vacant.
Members also called for greater enforcement powers for PMTE, criticised departmental indecision, and urged accountability for mismanagement.
Sifiso Mdakane of the DPWI stated that one of the persistent challenges facing the department is the unwillingness of client departments to occupy facilities that have already been procured for them.
“This hesitation undermines the efficiency of state property management.”
The committee requested a detailed action plan within 14 days to prevent Telkom Towers from becoming a permanent white elephant.
Proposed interventions
SAPS, in its presentation, disclosed that it currently holds 22 leases within the Pretoria CBD, amounting to 144,672 square meters and nearly 2,200 parking bays.
These leases cost the fiscus around R444 million annually, equating to R6.3 billion over 10 years.
The government now proposes consolidating Telkom Towers, the Central Government Offices, and Public Works House into a single precinct, offering 200,000 m² of leasable space and 2,600 parking bays.
Looking at just the Telkom Towers building, DPWI’s Siza Sibande said it would require either a complete new construction, at a cost of R5.4 billion, or refurbishment, at a cost of R1.6 billion.
Due to the R4 billion cost of the total refurbishment, the DPWI intends to pursue a Refurbish-Operate-Transfer (ROT) model under a public-private partnership (PPP).
This would allow private developers to refurbish and operate the facility, eventually handing it back to the state.
The projected lease rate of R134 per square metre under this model is significantly lower than the R255 currently paid to private landlords.
However, SAPS has not confirmed its willingness to reoccupy the site. The Department of Justice has expressed strong interest in taking over Telkom Towers North, and the PMTE is engaging over 40 national departments to assess alternative tenants.
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