Public Works Minister Macpherson outlines key reforms and achievements after one year in office

Public Works and Infrastructure Minister Dean Macpherson marked his first anniversary in office by outlining his department’s achievements and ongoing reforms, including updates on key investigations, property asset utilisation, anti-corruption efforts, and the Expanded Public Works Programme (EPWP).

Speaking at Parliament on Wednesday ahead of his budget vote, Macpherson said the department has transitioned from being a passive custodian of “broken buildings and stalled projects” to one that aims to deliver infrastructure and economic momentum.

“We came up with a bold vision: to turn South Africa into a construction site, and to anchor this vision to attract additional private sector infrastructure investment during the term of the seventh administration,” he said.

Macpherson announced progress on four central focus areas over the past year: investigations into failed or mismanaged projects, repurposing public assets, implementing lifestyle audits and ghost employee detection, and reforming the EPWP.

On investigations, Macpherson said two flagship probes were nearing completion.

The first focused on the Telkom Towers in Pretoria, purchased for R600 million in 2015/16 to house the SAPS national head office, but had instead sat idle and vandalised.

“The draft investigation reveals a significant loss in terms of the value of the property owing to a series of damages to its infrastructure,” Macpherson said, adding that the report will be finalised by the end of July. “Where individuals have been implicated, we will not hesitate to act.”

The second investigation related to the PSA Oxygen Plant project, managed by the Independent Development Trust (IDT) for the Department of Health.

It was meant to provide 60 hospitals with on-site oxygen facilities, but had “instead become a cautionary tale”.

“Despite the fake-news campaign, AI-altered voice notes, and social media bots, which sought to discredit the investigation, members of the board and I fought on regardless,” Macpherson said.

The report is expected by July 25 and will be handed to law enforcement agencies for prosecution.

He added that lifestyle audits on senior IDT management were under way and that the incoming IDT board was expected to investigate lease irregularities and present a financial turnaround strategy.

On repurposing public assets, Macpherson said his department was working to reduce state reliance on expensive leases by turning idle properties into productive sites.

“Government departments are in some cases paying R120 per square metre in private leases, while our buildings cost just R26 per square metre,” he said.

Seventeen properties had been handed over for use as shelters for victims of gender-based violence and substance abuse, including two in Malmesbury.

“In the preceding five years, the department had only managed to transfer one,” he noted.

Further examples included a property handed over in Nkandla for local economic development, and enhanced public access to properties such as the Castle of Good Hope and the Union Buildings, where displaced people now receive medical care, EPWP employment, and developmental support.

He said plans were under way to restructure the department’s Property Management Trading Entity into a revenue-generating asset portfolio.

“This will mean the state will finally start to generate revenue from its assets, either through co-development models or through investment into a property fund of A-grade property assets,” Macpherson said.

He also confirmed a new partnership with AgriSA and AgriBiz to repair priority roads critical to agricultural logistics, with the Free State as the pilot site. The projects will fall under Strategic Integrated Project 11.

Director-General Sifiso Mdakane provided insight into reforms under way within the department’s internal systems, including digitisation and professionalisation.

“We have created a new branch that will be reporting directly to myself that will be leading ICT, which is the level at which we want to take ICT very seriously,” said Mdakane.

“Part of the other issues that we are going to be focusing on is the issue of e-procurement… because you realise the interaction of procurement with human beings directly, it causes a lot of problems.”

Mdakane said the department had audited the skills of all senior managers and was restructuring to ensure it reflected its technical mandate.

“We should have strong skill sets that have technical people… economists, property specialists, developers, engineers, technologists, technicians… architects, quality surveyors. We’re seeking to professionalise the department.”

Macpherson also reported on lifestyle audits and ghost employee detection, saying audits had been launched for 400 high-risk officials. The first batch of 69 audits began in March and will be completed by September.

“Our Anti-Corruption Unit is currently auditing the PERSAL system across the department and EPWP to detect any fictitious employees drawing salaries without working,” he said.

On the EPWP, the minister said he had completed a national listening tour across four provinces and identified systemic weaknesses, including political patronage, irregular recruitment, and poor municipal capacity.

“Too often, I have heard from participants and community members that the programme has become associated with gatekeeping,” he said.

Transfers to non-compliant municipalities had been halted.

Macpherson said the department would reposition the EPWP around transparency, longer projects, better compensation, skills training, and enterprise development. A new partnership with Harambee Youth Accelerator would focus on youth employment in renewable energy and maintenance.

“EPWP participants must exit the programme with more opportunity than when they first entered it… with a certificate, a skill, or a viable economic path, not just a stipend and a memory,” Macpherson said.

Mameetse Masemola, acting head of Infrastructure South Africa (ISA), said her office had prioritised seven mega projects for packaging and investment, focusing on rail, ports, energy, and wastewater reuse.

“The highest decision-making structure internally… has approved six projects. These are blended finance projects and PPPs worth R40 billion,” Masemola said. “They will be submitted to the National Treasury through the Budget Facility for Infrastructure to get additional fiscal allocation to the tune of R20 billion. The rest will be leveraged from the private sector.”

Masemola also confirmed that the second edition of the Construction Book had been released, listing R268 billion worth of infrastructure projects already funded and ready to go to market.

ISA had also embarked on an Adopt-a-Municipality pilot programme across four provinces, targeting stable and well-run municipalities.

“We’re going to be helping them with preparing and packaging projects, raising funding, and also providing technical implementation support,” she said.

On the George building collapse that killed 34 construction workers in May 2024, Macpherson confirmed he would present the findings of the Engineering Council report to affected families in George on July 19.

“This collapse was entirely preventable,” he said. “Accountability cannot be optional when lives are lost due to human error.”

mandilakhe.tshwete@inl.co.za