State property register essential to cutting wasteful government leases

A reliable Immovable Asset Register is key to unlocking public assets and strengthening municipalities.

Carol Phiri is the Chairperson of the Portfolio Committee on Public Works and Infrastructure; she writes in her personal capacity.

The government spends billions of rand each year leasing private property for government departments, even as it owns thousands of buildings and substantial land holdings. This is not simply a question of lease costs. It raises a more fundamental question: Does the state have a sufficiently reliable record of what it owns, where those assets are located and how they are being used?

The answer matters because South Africa cannot manage public assets effectively without a credible Immovable Asset Register. Before the government can reduce unnecessary leasing, improve service delivery or make better use of public property, it must first know the full extent and condition of the assets under its control.

This is not an argument against the private sector. Public-private partnerships have an important role where they deliver value for money and serve the public interest. However, the government must first become a better steward of the assets it already owns. The Portfolio Committee on Public Works and Infrastructure has repeatedly emphasised the need for a consolidated and reliable Immovable Asset Register as the foundation of effective property management.

The first question when accommodating a government department should be straightforward: Does suitable state-owned accommodation already exist? If the answer is yes, it should be considered before private leasing options. Yet continued reliance on leased accommodation suggests shortcomings in how state property is identified, managed and allocated.

The consequences extend beyond government expenditure. Vacant and underutilised state buildings contribute to the decline of inner cities and towns, weaken surrounding property values and create opportunities for illegal occupation, building takeovers and criminal activity. Public buildings that stand empty for years become symbols of neglect rather than instruments of development.

This is where the Property Management Trading Entity becomes critical. The entity manages a substantial portion of the state’s property portfolio, but it cannot perform this function effectively without accurate, up-to-date information about the assets under its control. A reliable Immovable Asset Register should not be viewed as an administrative requirement. It is a strategic governance tool.

Importantly, the issue extends beyond the national government. Municipalities rely on their own immovable asset registers as a core component of local planning and infrastructure management. These registers inform municipal integrated development plans, which guide investment, spatial planning, service delivery and economic development priorities.

For this reason, a reliable national Immovable Asset Register should not exist in isolation. It should align with municipal planning systems and support local government objectives.