Why Parliament's buildings were uninsured during the devastating fire

IOL News

5 days ago

The restoration and rebuilding work is set to be completed in November 2026 for the New Assembly building and the following month in the Old Assembly just in time for the State of the Nation Address in 2027.
Image: Phando Jikelo / Independent Newspapers
The buildings of Parliament were not insured when they were gutted by fire three years ago, Secretary to Parliament Xolile George said on Friday.
'The State does not insure immovable property to a large extent as we know, including movable property. There is no insurance. It covers that by placing funds to rebuild whenever there are issues or replaces those assets,' he said.
George was responding to questions from MPs when implementing agent, the Development Bank of Southern Africa (DBSA) and Parliament briefed the Joint Standing Committee of Financial Management of Parliament on the rebuilding and restoration work.
George also said the National Treasury had issued an instruction note in 2007 that clearly stated departments not to insure immovable properties.
'These buildings were not insured at the time of the fire. The replacement is done as per appropriation from the national fiscus to rebuild. We may not know the reasons for that, given the large scale of the portfolio of the state. It might have been informed by these considerations. I don't know,' he added.
During the meeting, MPs heard that at least R574 million has been spent to date on rebuilding the buildings gutted by fire in January 2022.
DBSA group executive for infrastructure delivery, Chuene Ramphele, said the cost of restoring and rebuilding the gutted buildings was R4.4 billion.
'We have already spent R574 million. These are reconciled by the National Treasury and Parliament,' Ramphele said.
He told the MPs that the work done at the precinct had entailed five work streams that included enabling a work safe access route, MPs' offices, rubble removal, asset recovery, and spatial planning and designs, among other things.
Ramphele also said the gutted buildings were a crime scene after the devastating fire until 2023.
'It was under police watch. That was lifted in February 2023. Technically, work started in March 2023,' he said.
However, Ramphele said there was much significant work completed at that particular time.
He said some of the achievements were the demolition work which came to the tune of R73m.
The designs were completed in November 2023 and presented to the multi-party forum and chief whips in January 2024.
The heritage application process, started in November 2023 in consultation with the South African Heritage Resource Agency, was approved in December 2024 following an intensive consultative process.
Ramphele also said the construction and restoration have started after construction companies were appointed following the issuing of a work permit for construction by the Department of Employment and Labour.
He said work was happening underground.
'You may not see things really happening. You see cranes. We started the kind of work happening in the basement,' he said.
The presentation made to the committee showed that work in the New Assembly and Old Assembly would be completed in November 2026 and January 2027, respectively, just in time for the State of the Nation Address.
Ramphele said they projected to commission, test, and hand over the New Assembly in November 2026.
'At that time, the building will be practically complete at 95%. It can really be used.'
He stated that the building can be used around January 2027.
Ramphele also said the Old Assembly will be commissioned, tested, and handed over in January 2027.
He said they were monitoring the timelines closely.
'We really work hard with contractors, consultants, Parliament, and everyone involved to make sure these milestones are achieved and get these buildings completed,' Ramphele said.
George echoed the sentiments of MPs that issues of weather could not be used as an excuse for not completing the project unless something unreasonable happened.
However, George said a stream of ground was found under the Old Assembly buildings.
'It is known that the stream has always existed. I think the engineers, like any other, would find answers so that it does not materially impact the progress per set timelines. We will be watching that also to ensure the project is completed as planned,' he said.
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