Minister Macpherson seeks independent probe into controversial R70 million Pretoria lease

Minister of Public Works and Infrastructure Dean Macpherson has approached the National Treasury for guidance and directives on instituting an independent investigation into the Property Management Trading Entity’s (PMTE) roughly R70 million lease agreement for a building at 146 Lunnon Road in Pretoria.

The request follows a preliminary report by the Department of Public Works and Infrastructure’s Anti-Corruption and Fraud Awareness Unit, which uncovered alleged irregularities in both the procurement process and implementation of the lease agreement.

According to the report, PMTE concluded a five-year lease worth approximately R69.6 million in March 2023 for the then Department of Public Enterprises (DPE), despite the department already having been earmarked for closure and reconfiguration following an announcement by President Cyril Ramaphosa.

Although the building was never occupied, investigators found that PMTE later attempted to advance the lease agreement in 2025 by seeking to accommodate the National Prosecuting Authority’s Investigating Directorate Against Corruption (IDAC) at the property.

The report alleges that officials created what was described as a “self-created emergency” after a separate process to house IDAC at the Council for Scientific and Industrial Research (CSIR) premises in Brummeria, Pretoria, was not pursued further.

Investigators found that the original tender process was marked by significant irregularities. Concerns were raised over bidder responsiveness, B-BBEE compliance and whether procurement processes and National Treasury regulations had been properly followed.

The report further revealed that the Bid Evaluation Committee twice recommended cancelling the tender, but the National Bid Adjudication Committee proceeded to approve the award regardless.

Macpherson criticised the report's recommendations, arguing that they failed to hold any current officials accountable and instead placed responsibility on a former Deputy Director-General who has since resigned.

He said an independent investigation was necessary to identify all officials involved in the awarding and attempted implementation of the lease agreement.

“These findings are exactly why an internal preliminary report is not enough. Every official involved must be identified and held accountable, whether through disciplinary or criminal action,” Macpherson said.

The minister added that the findings highlight deeper problems within the PMTE's leasing environment and vowed to continue efforts to restore proper procurement practices and protect public funds from abuse, negligence and mismanagement.

He said the department remains committed to ensuring accountability and preventing future financial and legal risks to the state.