South africa: The Portfolio Committee on Public Works and Infrastructure has expressed reservations regarding the Minister of Public Works and Infrastructure's recent announcement about the intended redevelopment of the Telkom Towers complex through a public-private partnership model. The redevelopment proposal includes a rehabilitate-operate-transfer approach.

According to African Press Organization, the committee acknowledges the importance of transforming dormant state assets into fruitful public infrastructure. Nevertheless, they emphasize the necessity of adhering to fiscal discipline in any proposals involving public funds. Committee Chairperson Ms Carol Phiri insisted that the Minister must ensure that all government expenditures related to this plan remain strictly within the approved budget for Public Works and Infrastructure during the current Medium Term Expenditure Framework period.

The redevelopment cost, estimated between R1.8 billion and R2.2 billion, should not be presented as a public relations effort until Parliament and the public verify that the funding implications have been adequately assessed, budgeted, and tested for affordability. These concerns need addressing before any announcements are made.

While the objective of using government assets productively to generate state income is shared, the committee's focus is on ensuring this is achieved transparently, affordably, and without sidestepping accountability for past failures. Ms Phiri highlighted concerns that the Minister's announcements might suggest he is solely responsible for finding solutions, despite the build-operate-and-transfer model being a collaborative effort initiated by the National Treasury and others, including former Minister Sihle Zikalala.

The committee is troubled by the Minister's awareness of procurement irregularities concerning the Telkom Towers complex, which have not been resolved through a transparent and complete forensic investigation. According to Ms Phiri, adherence to the Public Finance Management Act is crucial; any losses incurred by the state in asset procurement must be identified, recovered, and those responsible held accountable.

Ms Phiri also mentioned the committee's unsuccessful attempts to obtain the forensic report from the Minister. The report is crucial for Parliament to understand why the investigation remains incomplete and what steps are necessary to finalize it. The committee has repeatedly requested access to this report, as its absence hinders Parliament's oversight and delays necessary corrective measures.

The committee finds it perplexing that the Minister appears to be using the public-private partnership announcement to divert attention from the ongoing forensic investigation. They argue that redevelopment should not be a distraction from accountability, and before advancing any new models, evidence of quantified losses, recovery processes, and accountability for wrongdoing must be presented.

The Chairperson criticized the timing and manner of the Minister's announcement as premature, given the incomplete accountability process and Parliament's lack of necessary information for oversight. The committee remains steadfast in demanding fiscal prudence, transparency, and accountability before portraying Telkom Towers as a successful reform project. South Africans deserve both the productive use of public assets and accountability for past failures that rendered these assets dormant and costly.