MEC Meyer: unused government buildings cost taxpayers R1.7 billion a year
Durban — “The government will not shy away from selling state assets that it no longer needs, because keeping them unused is costing the fiscus.”
This was announced by KwaZulu-Natal Public Works and Infrastructure MEC Martin Meyer during the handing over of the Esplanade Government Building in Durban to a contractor for renovation on Monday.
The MEC was responding to a question often raised by people against privatising public assets. He said the provincial government was spending over R1 billion a year on rates and taxes, paying for buildings that were not being used.
“We are not selling government assets as we are leasing these buildings for a 99-year deal through partnerships with the private sector. The government must sell the assets it no longer needs. There are buildings that we should not be owning as a government and they are draining the fiscus. Over R1.7bn we pay for rates and taxes as the government, so we will sell what we do not need as we cannot afford to have buildings standing empty,” said the MEC.
The department has appointed Enza Construction to revitalise the building for R1bn. It will be completed in 2027 and will be a state-of-the-art structure that is home to numerous government staff, office space, shops, and private businesses.
The buildings have stood empty and dilapidated at the corner of Margaret Mncadi Road, formerly known as Victoria Embankment, and Stalwart Simelane Road, formerly known as Stanger Street, along the Durban harbour since 2008.
The MEC said the unveiling marks one of the first projects showcasing the impact of the Public-Private Partnership initiative.
The main concern for the department and the City was that the buildings were harbouring criminal elements while chasing away businesses and investors from strategic central business districts.
The building has been abandoned for 16 years after government departments were evacuated from it upon being declared unsafe. In its heyday, the once-iconic 18 000-square-metre building housed hundreds of staff from various departments.
Years later, all that remains of the seven-floor mega-structure is its empty shell, while it has become a safety hazard and an eyesore, adding to an endless list of derelict buildings.
Speaking at the event, eThekwini deputy mayor Zandile Myeni said the unveiling was part of the City’s inner regeneration projects approved in 2021 to release all the unused facilities for public-private partnerships. She said since 2021 the City has released 57 properties for use by the private sector and 50 more will be released in the financial year.
The Esplanade building is one of the buildings that the department mentioned during the signing of the memorandum of understanding by the Public Works and Infrastructure Department and the eThekwini Municipality a few weeks ago together with the Excelsior in Berea, which has also been abandoned for many years.
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