Johannesburg, South Africa — South Africa’s Public Works and Infrastructure Minister, Dean Macpherson, has ordered an investigation into 6,238 state-owned residential properties across the country.
The probe, initiated on July 20, 2026, aims to assess the necessity of these properties for legitimate operational purposes, particularly those occupied by officials within the Public Works and Infrastructure department.
The investigation covers properties spread across various provinces, with the majority located in KwaZulu — Natal (3,626), followed by the Western Cape (566) and Gauteng (407).
The department has allocated nearly R40 million for maintenance of these properties during the 2025/2026 financial year. Macpherson’s decision to investigate the properties comes amid ongoing debate about the cost and necessity of state-owned residential properties in South Africa.
The government has a vast portfolio of immovable assets, some of which have been controversially allocated to officials.
The investigation is intended to ensure that properties are allocated and maintained in accordance with legal requirements and operational needs. Macpherson believes that unnecessary state-owned properties should be disposed of to reduce costs and streamline government operations.
According to sources, the department’s Director-General, Sifiso Mdakane, has been tasked with conducting the investigations.
Mdakane is also expected to develop a comprehensive strategy for disposing of properties not required for legitimate operational purposes.
The investigation will examine the legal basis for leasing out state — owned homes, including compliance with the Government Immovable Asset Management Act, the Public Finance Management Act, and National Treasury regulations. It will also look at whether the rentals charged are in line with the market and whether approval was obtained for any exceptions.
Additionally, the investigation will assess whether officials living in work or official housing qualify for it under their conditions of employment and whether the correct fringe benefit tax has been applied.
The probe will also examine whether departments have handed back properties they no longer needed and whether any surplus properties should be repurposed, redeveloped, sold, or released from the state’s portfolio. Macpherson emphasized that the government should not continue carrying the cost of maintaining thousands of residential properties when many officials already receive housing benefits as part of their employment packages.
He stated that the state should not own more than 6,000 residential properties for government officials.
The investigation is expected to provide a clearer picture of the state of government — owned residential properties in South Africa and potentially lead to changes in how such properties are managed and allocated in the future. ### What happens next?
The department’s Director-General, Sifiso Mdakane, is expected to submit a comprehensive report to Minister Macpherson within 30 days.
The report will detail the findings of the investigation, including the status of each property, the reasons for its allocation, and recommendations for its future use or disposal.
The investigation could lead to significant changes in how state — owned residential properties are managed and allocated in South Africa, potentially saving millions in maintenance costs and ensuring that properties are used for legitimate operational purposes.
*Additional reporting by ImNews | Sources consulted: 5*
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This original article was produced by the ImNews editorial team
Source: Google News v2
