Macpherson orders probe into 6,238 state-owned homes occupied by government officials

Public Works and Infrastructure Minister Dean Macpherson has ordered an investigation into 6,238 state-owned residential properties that are occupied by government officials, saying unnecessary assets should be disposed of to reduce costs on the state.

Scope and numbers

The Department of Public Works and Infrastructure recorded that of the 6,238 properties, 3,626 are in KwaZulu-Natal, 566 are in the Western Cape and 407 are in Gauteng. The department reported an estimated R39.6 million was spent from its Day-to-Day Maintenance budget during the 2025/26 financial year, though that expenditure information relates to only 108 of the properties.

Investigation instructions and timeline

Macpherson has instructed the department’s Director-General, Sifiso Mdakane, to assess the properties and develop a strategy for disposing of those no longer required. He has requested that Mdakane submit a report within 30 days that includes a detailed assessment of the KwaZulu-Natal properties, the departments they are allocated to, their intended purpose, operational need and the status of current occupants.

What the assessment must examine

The assessment will determine who occupies each property, why it was allocated, whether it is still needed, and whether properties should be retained, repurposed or sold. It will also identify properties occupied by officials of the Department of Public Works and Infrastructure and determine whether the same allocation criteria, governance requirements, rental provisions, housing entitlement checks and tax treatment applied to other departments have been followed.

The review is required to examine whether state-owned residences are being leased in line with the Government Immoveable Asset Management Act, the Public Finance Management Act and National Treasury regulations. It will also determine whether rentals charged are market-related and whether any deviations were properly approved.

Macpherson’s rationale

“It is my view that the state should not own more than 6,000 residential properties for government officials, particularly when many officials already receive housing allowances, subsidies or other housing-related benefits as part of their remuneration packages,”

Macpherson said the state should reconsider owning thousands of residential properties for government officials and that, “unless there is a clear and compelling operational reason for the state to retain a residential property, it should be sold.”

He added:

“The default position cannot be that the state indefinitely carries the maintenance, rates and other costs of thousands of residential properties while the public fiscus remains under immense pressure.”

Intended outcome

Macpherson said the assessment aims to establish whether the properties continue to serve a legitimate public purpose and whether surplus assets should be released from the state’s portfolio. “Where properties are underutilised, unnecessary or no longer required for government operations, they should be released from the state’s portfolio through a transparent and legally compliant disposal process,” he said.

He said selling properties that were no longer needed would reduce unnecessary expenditure and allow government to focus resources on infrastructure and assets that directly support service delivery.