Daily Dispatch

Bhisho’s rental bill spirals as office park plans stall

- By ZINGISA MVUMVU Senior Politics Reporter

THE Eastern Cape government will spend R281-million leasing office space over the next financial year starting next month.

This is an increase of more than R30-million from the R248-million spent in the year ending this month.

This was revealed by premier Phumulo Masualle during a reply to a question in the Bhisho legislatur­e.

ANC MPL Mzoleli Mrara asked the question, saying he was concerned over the lack of stateowned buildings in the province to house government department­s. Masualle last week told the house the provincial government continued to fork out on leasing offices.

Asked for a progress update on the much talked about Bhisho Office Park plans, Masualle said bids had been put out for either public or private partnershi­p and investment, but all were “unresponsi­ve”.

“We have since, with national Treasury, come to agree that we should pursue the matter further, particular­ly looking at those in the investment environmen­t, the public investment commission being one of them,” he said.

“This [is] to see whether there could not have been a failure in that open process [we previously took] to instead go for limited interactio­n on the best possible way to fund that initiative.

“That is the progress in respect of the Bhisho Office Park.”

A Dispatch investigat­ion in 2016 uncovered that 19 state entities in the province lease property from SKG, an East London-based company owned by property mogul Jean du Plessis.

Then, the Eastern Cape Liquor Board was paying R180 000 a month to occupy SKG’s Beacon Bay Crossing complex office space.

Mayibuye Transport Corporatio­n was also using the same offices for an undisclose­d rental amount.

Other state entities leasing office space from SKG included:

● The Eastern Cape Land Claims Commission which moved into Beacon Bay Crossing on October 2016 for an undisclose­d rental;

● The Eastern Cape Parks and Tourism Agency also moved into the SKG-owned building in the East London CBD for a monthly rental of R428 361.54 in 2016;

● The department of human settlement­s, as at 2016, was paying a monthly rent of R1.8-million for its Chiselhurs­t office;

● Eastern Cape Rural Developmen­t Agency paid about R9million a year in rent for its Beacon Bay Crossing office;

● ADM said it paid R1.2-million a month for the state-of-the-art glass office, also in Chiselhurs­t; and

● The department of environmen­tal affairs, department of energy, the Commission for Gender Equality, Independen­t Police Investigat­ive Directorat­e, SARS, the Hawks and Home Affairs are some of the other entities that lease through SKG.

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