Home affairs paying R33m a year for HQ

2012-03-05 19:08

Cape Town - The home affairs department is paying R33m a year rental for its new Pretoria headquarters, more than one-and-a-half times what it previously paid for office space.

According to Home Affairs Minister Nkosazana Dlamini-Zuma, the new offices, located in the Hallmark Building in Pretoria's CBD, are costing her department about R1 307/m².

She said in a written reply to a parliamentary question tabled on Monday that the yearly rental is nearly R33.2m [VAT inclusive]; the floor space is 25 388.50m²

Previously, the department had paid R25.7m a year for 30 859m² of floor space. This is about R832/m².

Home Affairs started moving from Waltloo, east of Pretoria, to the more central Hallmark Building late last year.

The Hallmark Building is owned by Manaka Property Investments (Pty) Ltd. According to the company's website its chairperson is Thaba Mufamadi. Mufamadi is a serving African National Congress MP, and chairman of Parliament's standing committee on finance.

On whether the department had invited tenders from property companies ahead of choosing Manaka, Dlamini-Zuma said in her reply on Monday that the department of public works was "responsible for the accommodation needs of government departments".

In November last year, home affairs director general Mkuseli Apleni said "at no stage did the department of home affairs have to deal with any aspect of the tendering processes, including the names of companies who have tendered..."

The whole process had been handled by public works. Any suggestion that the department of home affairs had awarded a tender to ANC-connected business people "must be rejected with the contempt it deserves", Apleni said at the time.

Last month, Democratic Alliance MP Dion George said that over the eight-year lease period, home affairs would pay R60m more to do business with Manaka compared to its previous lease agreement.

The evidence suggested home affairs was paying "inflated rates to politically-connected people" for their new building, he said in a statement issued at the time.

George noted that besides Mufamadi, who was the majority shareholder in Manaka, "other shareholders include Limpopo Premier Cassel Mathale and the former chairperson of the Limpopo tender board, Jannie Moolman".

According to reports, an amount of between R30m and R60m was spent on renovations to the Hallmark Building prior to home affairs moving in.

  • Kim - 2012-03-05 19:15

    Absolutely no respect for Tax Payers Money.

      Francois - 2012-03-05 19:21

      Is this the same Zuma that lost an election in the AU ballot? Now that she is not my Afreeecan Queen, she act like she lost an election and something that rhymes with it in her dewors from Janeekop. Umfazi, how many RDP houses are you paying for that ego?

      Kim - 2012-03-05 19:22

      It is about time that the Tax Payers set the budgets annually. Let us decide where the money must be spent

      Morama - 2012-03-05 19:36

      @ Kim,you are really stupid!!!Stop your stupid raunting as if you are the only one's paying tax.we all do and had been.We just need to unite and work together to dethrone ANC but with your one sided stupid comments,majority would never take your crap even if you are making a point.wake up!!!

      Anthony - 2012-03-05 19:37

      I know the new building --no one in their right mind would rent it for the price they are paying --the per square foot charge is exorbidant for that building and out of line with the rentals in the area no wonder they had to spend 60 million on refurbishment clearly it was rented because its owned by ANC friends this article is living proof why they want to gag the press another addition to the list of corruption-- the list has more than 1000 entries now

      Simnikiwe - 2012-03-05 19:46

      Frank: Your comment did not add one thing to the debate - instead of critizing Morama you should make a constructive comment - then you will not appear to be so "stupid".

      Francois - 2012-03-05 19:47

      Morama, firstly the word is "ranting", there is no word in English like "raunting" except if you cannot spell "haunting", but then it is a spelling mistake again. Kim did use the plural so exactly how did you deduct that she thought that she is the only one. Then if you want everyone to unite, the way in which you had a go at someone who shares your sentiment is not the way to do it. With your bad use of the English language, the minority that must grow to dethrone the ANC will not trust you and if you are an IFP member: It is irrelephant how someone turns for or against a political party. The fact is that they must turn so that we have a constitutional government based on coalition not on "enrich yourself when you still can". Tot weer.

      Anthony - 2012-03-05 19:47

      @morama----why are u shouting at KIM and insulting her --I can promise you that she did not vote for the ANC and I definitly did not who did you vote for ???????? the ANC ---so dont shout at us because your party has being destroying south africa for 18 years why dont you vote for an opposition party and stop insulting people

      Simnikiwe - 2012-03-05 20:02

      This forum is full of smart people, bitch*n on news24 about the government's ineffecient management of funds is a very smart move. It will solve all our problems.

      Morama - 2012-03-05 20:05

      @"Wise" Frakn,I am not here to collect dumb thumbs up while sitting in my ass like you doing nothing....time to stand up and put in action....and by the way i was responding to Kim who sings this irritating song of "Tax Payers" which seem to be segregative if you have a lok at it thouroghly!!!

      Simnikiwe - 2012-03-05 20:12

      @Frank- Now there is an ORIGINAL comment. You should write a book on "come-backs"

      Kim - 2012-03-05 20:18

      Oh keep quiet Morama. You making a complete idiot of yourself with your spelling. Or are you Malema in disguise?

      Simnikiwe - 2012-03-05 20:27

      Morama skeem sam you are killin me dude. Frank and Kim wont take us serious if you keep makin these spellin errors. Come on dude bring your "A" game. Aziwe ke!

      Simnikiwe - 2012-03-05 20:46

      @Frank, who takes news24 comments seriously?...

      Kim - 2012-03-05 20:53

      @Simnikiwe, someone does at News24 as periodically they delete comments

      Francois - 2012-03-05 20:59

      Morama, let us cut through the chase. Do you think that there is a divide between and discrimination by people who pay tax against those who do not?

      Simnikiwe - 2012-03-05 21:12

      @Kim, I have no come-back for that. Frank help me out buddy.

      Malcolm - 2012-03-06 08:32

      @Morama: Kim is quite entitled to present her opinion. Her democratic assessment being “those that pay must have the say” is quite logical and I agree with her. The attitude of the ANC encourages government employees to collectively reject the fact that they are servants of the people of SA. Your caustic insults against Kim by calling her “stupid” is a disgraceful disregard for another’s right to their personal point of view.

      Dirk - 2012-03-06 08:49

      Home Affairs or Public Works? What is the dif? Both are "govt" departments and yet of another example of wanton corruption. Can anyone think of ANYTHING, where this regime is involved, where there is not theft and corruption involved- from the top to ground level.

  • Piet - 2012-03-05 19:19

    And they want to change the constitution because BEE/AA isnot working. Bunch of thieving idiots....and they still get the vote from the poor. Sad place africa.

      Anthony - 2012-03-05 19:55

      leonardb1--you make such an excellent point ---yes how do they do it

      art5SA - 2012-08-15 06:16

      Leonard and Anthony.... "It's a kinda magic...." ROFLMAO!!!! When you CONNECTED..... you are PROTECTED!!!!!!!!!!!! These CORRUPT bastards look after one another... Follow the money trail, and you will find out how MANY GOVT ministers are "IN THIS LANDLORD BUSINESS"

  • Ben - 2012-03-05 19:24

    They could have bought the place at a repayment of this amount per year.

      Ben - 2012-03-05 20:43

      Sorry Leonard, I should not have commented.

  • Lara - 2012-03-05 19:25

    And what a crappy old building it is. Big rip-off.

  • pietopper - 2012-03-05 19:26

    Give DHA a break. The previous premises was a disused Peugeot factory building. Nothing worked. The airconditioning was minimal to zero. The computer room had to be shut down for hours because of the heat. It looked like a dump, and it was. Comparing the rentals is ludicrous. I worked there. I could only last 6 months. Good riddance to that dump.

      Piet - 2012-03-05 19:34

      jip and now the taxpayer is paying a massive amount for thAT DUMP!

      Anthony - 2012-03-05 19:49

      you miss the point sweetheart

  • SaintBruce - 2012-03-05 19:27

    We forget Kim, once it is collected by SARS, it is no longer anyone's money, except those who seem to use the National Fiscus as a personal piggy bank! How can you call the National Budget "balanced" when Pravin is going to borrow over R 360 Billion to meet the spending target of 1.1 Trillion Rand? Try knocking off 6 zeros and ask your bank manager to loan you an extra third above your annual salary because you intend to spend that much! FAT Chance you will get the money. So how does Pravin do it? He intends to enslave every South African man woman and child ( even those yet to be born) with National Debt. It's based on you and I being made to keep coughing up the cash - indefinitely! Does anyone like that idea? The insider dealing in Government was planned long before 'liberation' took place - it had to be. They couldn't do this sort of scamming overnight.

      art5SA - 2012-08-15 06:18

      South Africa is being run like a "FAMILY BUSINESS"..... ANC family that it! And ONLY the "CREAM" of the ANC benefit!!!!!!!!!!

  • keith.staniford - 2012-03-05 19:31

    No respect for anything except their greedy little fat selves!Who is allowing this raping and pillaging to continue?

      Debbi - 2012-03-05 22:38

      The idiots that keep voting for them.

  • Morama - 2012-03-05 19:33

    South Africa unite....we under severe pressure to do that or die while watching our killer ANC doing it live.Stop nonsense of paying tax or not we all paying,had been and as law abiding citizens would do that.

      Piet - 2012-03-05 19:36

      then we are like Greece, rather just vote for thDA

      Francois - 2012-03-05 19:49

      Yes Piet, in Greece they also struggle with English too as well. (Had to add the overuse for Morama to understand).

      Piet - 2012-03-05 19:58

      Jip Francois, but unlike you they can see when it is just a typo

      Kim - 2012-03-05 20:38

      @Piet, Never in my life have I seen such bad english. Perhaps it is only a few like Francois who see it. Not like you, who accepts Morama's writing

      jannie.beirowski - 2012-03-05 21:03

      @Piet. The ANC is not stupid. They realise they can not compete with service delivery and may be losing some more provinces to the DA. However, since they have the majority vote, they are thinking of doing away with provinces and that way extend their time.

  • keith.staniford - 2012-03-05 19:39

    @ SaintBruce, And how long do you think you and I (Joe Public) can keep on coughing up the cash? I don't know about You, but my resources are at breaking point already along with the majorities. it is fast approaching the point where you and I willhave no cash to cough up. What then

      Piet - 2012-03-05 19:45

      Then they will print more, simple!

  • Morama - 2012-03-05 19:40

    Let the public protector get involved because the big Corrupters from Limpopo is in that too!!! It's obvious matter that tender irregularities is at it's best!!! Friggin ANC thieves!!!

      Francois - 2012-03-05 19:51

      Careful at your sexual innuendos - rather delete this post of yours Morama and go and read the CAt in the Hat.

      Morama - 2012-03-05 20:14

      @ Francois,your problem is that you judged me based on my last response to the denialist but at the very same time no knowing me very well,you therefore ctergorised in the class of morons!!! How is that?

      Yar - 2012-03-05 20:19

      Don't need the PP. Police should be able to get the job done. Bring back the Scorpions!!!

      Francois - 2012-03-05 20:25

      Cool, but this moron's spelling is still better than yours. What does that make you?

  • ray.shepherdson - 2012-03-05 19:46

    At first, I thought, hectic - that is a lot of money to pay on rent, why not buy?. Then I read on and, unsurprisingly, the building is owned by an ANC comrade. Doesn't surprise me in the least! Corrupt to the core!

  • spnkosi - 2012-03-05 19:48

    This is really sad for all the tax payers and South African at large.There are ppl who sleep without food bcz they don't have jobs, while ANC members are sharing millions + their highly daily job salary... "crying for intervention"

  • Stormkaap - 2012-03-05 19:49

    Fire the fool!!! Who the heck negotiates these leases have no idea or else getting seriaas Greek salutes

  • Sylvia - 2012-03-05 19:53

    So it's just an unfortunate coincidence that Mufamadi happens to be involved here? Pull the other one.

  • Brave - 2012-03-05 19:55

    Why the F%&*K am I paying tax????????????

  • Anthony - 2012-03-05 19:56


  • Gary - 2012-03-05 19:58


  • Thandi - 2012-03-05 20:00

    What really scares me is that does not surprise me. Anarchy Nepotism Corruption.

  • DikgosiThokoane - 2012-03-05 20:09

    This is hardly a surprise, but it adds to one's irritation. Yet again, the taxpayer gets screwed over by greedy politicians and their friends without scruples....... I would go into all 101 reasons why this is so wrong, but what's the point? They know it's wrong but they are doing it anyway........ What a bunch of greedy pigs they are......... I am so looking forward to the day the ruling party looses the majority vote and the open cheque book that comes with it.

      Brave - 2012-03-05 20:27

      Juju's Party is coming...

      jaco.v.rooyen - 2012-03-06 19:16

      Maybe think of the one reason why it is right. For the next 10 years, DHA wont relocate since they have a building adequate according to their needs.

  • Graham.Cooper2 - 2012-03-05 20:10

    The rate per m2 is miles to high the landlord is stealing from the tax payer BUT the ANC said it's ok as he is one of them.

      jaco.v.rooyen - 2012-03-06 19:13

      The rate per square meter is actually in line with the industry norms, and if you take into account the amount of money spend before occupation, Home Affairs / Public Works is actually getting a good deal.

  • Scouter - 2012-03-05 20:14

    This scam has just got to be the most blatant example of corruption within the ANC government to date - and that is going some. I'm surprised Malema doesn't get a mention in this callous exploitation of public funds.

  • Thokozane Maloka - 2012-03-05 20:18

    Brilliant article. Heads must roll at Public Works.

      Terry-Lee Heuer - 2012-03-05 20:23

      Public Works, if I'm not mistaken, is also under investigation for corruption

  • Dave - 2012-03-05 20:29

    And sorry, this cr@p from the minister about its not her fault is bull. She is still in charge and responsible for her budget, she doesn't need to be a rocket scientist, and she isn't, to see her money being swallowed by this rent. No ma'am , sorry it's your problem , now sort it out

      clivegoss - 2012-03-05 21:00

      Dave are you talking refund ?

      Dave - 2012-03-05 21:12

      @Clive, no accountability and responsibility, stupid yes I know, paying more for less space in total,...

  • Michele - 2012-03-05 20:39

    Interesting this: Brenda Crooks: Neil, the Hallmark Building is owned by Manaka Property Investments (Pty) Ltd. According to the company's website its chairperson is Thaba Mufamadi. Mufamadi is a serving African National Congress MP, and chairman of Parliament's standing committee on finance. Cassel Mathale is also a shareholder. I think the Public Protector should look into this.

  • Candice - 2012-03-05 20:40

    South Africans and especially the media in this country are so quick to criticise. This is a big building and the rentals quoted per m2 are misleading as they are quoted as a m2/year and should be m2/month. This rental for commercial office space including a tenant fitout is R108/m2/month with is well within the industry norms. Lets try focus on the positive and let these people do their jobs - pretty good at the moment from our last few experiences with Home Affairs

      Dave - 2012-03-05 20:53

      Candice, the price per square is the price per square. From R832 to R 1307 per square

      Mandla - 2012-03-06 09:32

      Good point Candice. It seems to me that you are in the industry. The building needed refurbishments. Todays Gov refurb requirements are different to last decades refurbs. These days, they want a talking elevator for the blind and all sorts of security measures and paraplegic facilities. these things cost money. A lot of it if the GLA is > 25 000

      Sello - 2012-03-06 18:53

      Thanks Candice for your views. It's so irresponsible and misleading to write articles of this nature without an ounce of understanding of the industry and market norms. I'm still trying to figure out why such an article even made it to publication because clearly no informed consultation was carried out, just some idiot who tried to translate the numbers in a manner that gets a rise out of those who don't know any better.....

      jaco.v.rooyen - 2012-03-06 18:55

      Dave, the square price they mentioned in this article is per year, not per month. Why don't you dived that amount by 12, and then see what they are paying. And compare that to what banks, and the private industry is paying, and I'm sure it will still be inline with industry norms. And then people want the same quality of work from government as in the private industry.

  • clivegoss - 2012-03-05 20:59

    So what else is new ? What was your expectation ? Don't tell me you are surprised, amazed baffled or bedazzled ! !Take the money and run. While you still can ! Can = anc

  • Marion - 2012-03-05 21:12

    What I cannot understand is why the government leases buildings instead of purchasing them outright when it costs billions to lease them. In any lease agreement the lessee is responsible for interior maintenance and owner for exterior so the maintenance costs will surely be pretty much the same whether the building is leased or owned? Oh, wait, it's probably 'cos cronies own all the buildings.

      Mandla - 2012-03-06 09:34

      Marion, its costs more to buy and maintain them for gov then leasing. What the then Minister of Public Works said was incorrect.

      jaco.v.rooyen - 2012-03-06 19:02

      Marrion, do you know the costs to a landlord for a building like this. Maintenance for items such as air-cons, lifts, annual cleaning of a property, constant replacement of carpets, upkeep of bathrooms, kitchens, common areas, etc. That is only interior. Exterior is even worse. Constant painting, window cleaning, gardening services. And based on the amount of money spend before they took occupation versus the market rate per square, I can only wonder if this owner is really getting rich. In a case like this, the owner will only see dividends in 10 years time.

  • luzuko.mrwebo - 2012-03-05 21:23

    where is this country going??????

      Mandla - 2012-03-06 09:35

      To where you want it to go.

  • braamc - 2012-03-05 22:19

    Say it again, filthy thieving c)9nts

  • Ken Jay May - 2012-03-05 22:20

    Dis 'n skelm ousie die!!

  • brionyl.french - 2012-03-06 05:45

    so move, cancell the lease... There is no way you can justify this, when we have children who dont get food, education or basic health care...

      jaco.v.rooyen - 2012-03-06 19:08

      If they cancel the lease, people will be complaining about the DHA not being able to complete their functions. If they cancel the lease, DHA needs to relocate (relocation cost vs the costs of this lease). Maybe not the best possible idea.

  • Michael - 2012-03-06 07:43

    Well it would be nice if the dept of home affairs would fix up some of there other offices , the one in Randburg needs abit of attention .

      Jimmy - 2012-03-06 09:31

      Auction Alliance has been involved in corruption with a number of Banks in South Africa. Its amazing that people tend to be quiet when we see corruption in the private sector.

  • Mandla - 2012-03-06 09:27

    @LeonardB1. Its very easy. All you have to do is get a 9 years & 1 months lease in place and the Banks will fund you. @Anthony, You don't know what you are talking about my man. In the past 18 years, South African was run better the apartheid government. Did you know that we had a negative GDP from 1990 to 1993. We were growing negavtively. The country was already destroyed when we, the "black people" took over. So please, don't come with ignorance here. It's not a good look. Guys! corruption has been there. Before we owned these comercial buildings, white people or white government officials had owned them. All of sudden it's wrong when a black person who is an MP is doing it. Don't get me wrong, I am not saying he is right to charge them R 33 m a year. there are factors which influence that price. C'mon guys. @Kim, nobody in the world has respect for tax payers money. It's a fact of life. @Ben S, Gov does not buy buildings because its not their mandate to do so. They become custodians of them.

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