Public Works makes strides in reducing rental payments owed to landlords
Image: Henk Kruger / Independent Newspapers
Public Works and Infrastructure Minister Dean Macpherson said his department has managed to reduce to R20 million outstanding rentals owed to landlords that dated back three months ago.
Macpherson said the department has put controls that are monitored daily and is looking at systems to improve the functioning of its payment systems.
'As at 6 June 2025, the outstanding rental amount is R2,540,382.42 (0.5%) and R19,897,707.26 (4.1%) for April and May, respectively,' he said.
Macpherson was responding to parliamentary questions from Build One South African leader Mmusi Maimane, who enquired about the Information and Communication Technology outages that affected the ability of the Property Management Trading Entity to process rental payments to landlords in April.
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Maimane enquired about the current status of rental payments, the total number of landlords that remained, the total monetary value of outstanding rental payments, and steps his department has taken to ensure that such delays do not recur.
Macpherson said there were 1,991 leases for 1,274 landlords valued at R484,425,687.62 in the lease administration system and the payment system for April rental payments as of June 6.
'Forty-four leases (2.2%) affecting 26 landlords (2%) amounting to R2,540,382.42 (0.5%) failed Central Supplier Database (CSD) verification and therefore were not paid.'
He also said there had been 1,995 leases for 1,269 landlords valued at R483,952,863.48 for May.
At least 89 leases (4.5%) affecting 75 landlords (5.9%), amounting to R19,897,707.26 (4.1%) were not verified and were not paid.
Macpherson said the payment system was still processing the June rental payments.
'The outstanding rental payments for April 2025 are 44 leases (2.2%) affecting 26 landlords (2%). The outstanding lease payments for May are 89 leases (4.5%) affecting 75 landlords (5.9%),' he said.
'It must be noted that the non-payment of transactions submitted on the payment system is primarily due to landlords not being compliant with CSD. In addition, 33 CSD non-compliant landlords from April are included in the May figure.'
Meanwhile, the Independent Development Trust (IDT) has collected R882 million in payments in just three months from 15 departments that owed for infrastructure projects it implemented on their behalf.
'The IDT has been able to collect R882,374,561 between 01 April 2025 and 30 June 2025,' Macpherson said.
The entity has paid a total of 1,366 service providers to the tune of R648,167,277.
'As at 30 June 2025, 790 service providers remained unpaid an amount of R1,394,036,545. The variance in the amount is due to additional invoices that would have been received between 01 April 2025 and 30 June 2025,' he said.
Macpherson was responding to ActionSA MP Malebo Patricia Kobe, who enquired about the department's obligation to pay contractors after receiving money due from client departments.
The IDT had informed the portfolio committee in June that it was owed R1.2 billion by client departments.
It informed Parliament four months ago that it had been unable to pay service providers due to delays in payment by client departments.
The entity has incurred R47m in total expenditure on legal costs and owed creditors for more than 12,000 invoices that could not be paid within the 30-day deadline as of the end of March last year.
mayibongwe.maqhina@inl.co.za
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