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From Ghost Workers to R268 Billion Projects: Dean Macpherson’s Year of Cleanup and Construction

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2 months ago

July 9, 2025

Chiraag

Dean Macpherson, Public Works 2025, South African infrastructure reform, government buildings reused, ghost employee audits, Telkom Towers investigation, EPWP revamp, PSA Oxygen Plant failure, Parliament budget vote speech, Joburg ETC

The minister aims to turn South Africa into a ‘construction site,’ but first, he’s cleaning house

After one year in the hot seat, Public Works and Infrastructure Minister Dean Macpherson says the department is no longer just a custodian of crumbling buildings. Instead, it’s positioning itself as a driver of national infrastructure, accountability, and economic renewal.

In his budget vote speech to Parliament this week, Macpherson highlighted how his department has begun overhauling internal systems, investigating billions lost in failed projects, and kickstarting a new approach to property management. The vision? Simple but ambitious: to turn South Africa into a construction site.

Two Major Investigations Nearing the Finish Line

Top of the list is a long-delayed reckoning with high-profile blunders. One of the biggest is the Telkom Towers deal in Pretoria, where the state spent R600 million in 2015 to house the SAPS national head office. Instead, the building stood idle, vandalised, and decaying. The final investigative report is due by the end of July and may result in action against those responsible.

The second case centres on the failed PSA Oxygen Plant project, meant to deliver on-site oxygen to 60 hospitals. Instead, the project crumbled under mismanagement. Despite AI-altered voice notes and smear attempts online, Macpherson confirmed the findings will be handed to law enforcement by 25 July 2025.

He also confirmed that lifestyle audits and ghost worker detection are under way, with the department now reviewing 400 high-risk officials, including 69 priority audits that began in March.

From Leased Offices to Shelters and Revenue

Macpherson’s property reform drive includes converting idle government buildings into social and economic assets. So far, 17 state-owned properties have been repurposed, a significant shift from the single transfer made in the five years prior. These now include shelters for gender-based violence survivors in Malmesbury, developmental hubs in Nkandla, and medical outreach facilities at the Union Buildings.

The minister also pointed out that some departments are overpaying on private leases, up to R120 per square metre, compared to just R26 in state-owned equivalents. His long-term plan is to restructure the government’s portfolio into a revenue-generating asset base, using co-investment models and A-grade developments.

Fixing EPWP: From Stipend to Skill

Another major reform is underway in the Expanded Public Works Programme (EPWP). After a national listening tour, Macpherson called out political gatekeeping, weak recruitment systems, and undertrained participants.

He pledged to refocus EPWP around skills development, youth employment, and longer-term economic pathways. A new partnership with Harambee Youth Employment Accelerator will support green energy projects and public maintenance roles.

“Participants must leave with more than just a stipend,” he said. “They need a certificate, a trade skill, or a viable path to self-employment.”

R268 Billion in Projects Ready for Market

On the investment side, Mameetse Masemola of Infrastructure South Africa announced that seven mega-projects focused on rail, ports, energy, and water are now investment-ready. Six have already been approved for blended finance, with R40 billion in value and R20 billion in expected Treasury allocation.

She also confirmed the release of the second Construction Book, listing R268 billion worth of ready-to-go infrastructure projects.

Through a new Adopt-a-Municipality pilot, her office is helping stable local governments prepare projects, raise funding, and manage execution.

Accountability After George Tragedy

Lastly, Macpherson addressed the George building collapse that killed 34 construction workers in 2024. He will deliver the final Engineering Council of SA report to families on 19 July, stating plainly, “This was preventable. Accountability is not optional when lives are lost.”