Public Works delays property lease deals

2011-06-13 08:01

Public Works Minister Gwen Mahlangu-Nkabinde has announced a six months moratorium on all new property deals to allow a clean-up operation in her department.

The New Age newspaper reported the delay could stall business deals worth more than half-a-billion rands, given the estimation that the department concludes property lease deals valued at more than R1 billion annually.

Mahlangu-Nkabinde announced the moratorium on Friday while addressing the Property Sector Charter seminar in Sandton, Johannesburg.

“We have asked all business to stop at Public Works for six months. We need to clean our house and give South Africa a better service,” she said.

“The process is not going to be handled by Public Works. We have asked experts to help us.”

The minister has been under pressure after Public Protector Thuli Madonsela ruled that her department mishandled the controversial R500 million lease deal for the new police headquarters.

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