R600k a Month for an Empty, Hazardous Building: Minister Demands Answers in SETA Lease Scandal

Taxpayers have paid R15 million for a building that no one can use.

The Education, Training and Development Practices Sector Education and Training Authority (ETDP SETA) signed a lease agreement for a building in the Johannesburg CBD at R600,000 per month.

Staff have been working from home since July 2024, when the lease was signedbecause the building has been declared hazardous.

The Scandal

The lease was awarded to SKG Africa, a company reportedly leasing more than 15 buildings to government departments and state agencies, making over R40 million a month from the state.

A law firm has been appointed to investigate the tender processes that led to SKG Africa receiving the contract.

The Minister’s Response

Higher Education and Training Minister Buti Manamela is demanding answers.

In a statement on Sunday, Manamela’s spokesperson Matshepo Seedat said the allegations raised serious concerns relating to governance, building compliance, and the potential implications for public funds.

The minister has requested an urgent report from the department, which is engaging with the ETDP SETA.

The report must establish:

• The full facts surrounding the procurement process

• The lease agreement and circumstances leading to non-occupation

• The financial exposure of the SETA

• Health and safety considerations affecting staff

• Any investigations currently underway

Governance Failure

Seedat added that Manamela remains concerned about the safety of ETDP SETA staff and the manner in which public funds have been used.

“Any governance failures or irregularities identified will be dealt with in accordance with the applicable laws and regulations.”

The department will assess the report and advise the minister on the appropriate course of action once all relevant facts have been established.

The Minister’s Pledge

Since coming into office in July 2025, Manamela has pledged to resolve governance matters concerning SETAs. This scandal will test that commitment.

The Bottom Line

R600,000 a month. Since July 2024. For a building that’s hazardous. Staff working from home. Taxpayers footing the bill.

Manamela wants answers. The public wants accountability. And SKG Africa’s government lease portfolioworth R40 million a monthis now under scrutiny.

The question is whether this investigation will lead to consequencesor just another report.

{Source: Citizen}

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