In response to a Parliamentary question on the cost of administration buildings, communications minister Siphiwe Nyanda revealed that the department plans to spend R6 million on office space for just 17 people, in the next financial year.
The department's immediate costs for office rental this financial year include the iParioli Office Park, which is leased to provide office accommodation for the Department of Communications (DOC), the Denel building for the Institute for Software and Satellite Applications, and the 112 Call Centre building, which was leased to provide accommodation for the operation of the emergency number call centre.
The total cost of these three premises for this year was R32.9 million. The iParioli plot cost R24 million for 429 staff members, the Denel building cost R4.3 million to house just 13 people, and the now-abandoned 112 centre cost R4.6 million for 90 people.
Democratic Alliance (DA) shadow minister of communications Niekie van den Berg says these figures are “ridiculous”.
“Siphiwe Nyanda has got a history of spending money on luxury and this is absolutely indicative of that.
“Somebody in the department says: 'I don't like this building or that building', but it's all about service delivery and not about the luxury of the building. The department doesn't care about the money, because it's not theirs. They can just get more from the state.”
Continued expenditure
“The department will continue to lease the current three buildings. The Department of Public Works is in the process of renewing the lease agreement for the iParioli Office Park for the periods 2010 to 2015,” says Nyanda.
There will be no cost for the 112 centre, since it has been shut down. The minister has not indicated any costs for the 112 centre for the next three financial years. This was a pilot centre, housing what was to be the single national emergency number for the country.
Other costs
Rental costs for the department's entities were also revealed by Nyanda in his response.
The Universal Services and Access Agency of SA (USAASA) spent R1 745 000 on buildings to house 59 staff members.
Nyanda also said USAASA intends to lease some buildings in the provinces to establish provincial presence.
“USAASA is required to conduct research and to keep abreast of developments on information communication technology, electronic communications services and electronic communications facilities and to make recommendations to the minister of communications in relation to policy on matters relating to universal service and universal access.
“It is, therefore, crucial for the agency to have provincial presence. It is the intention of USAASA to have provincial offices in all nine provinces in the 2010/11 financial year.”
He adds that the agency is in the process of negotiating office space in the different provinces and, therefore, the costs and sizes are not currently available.
State signal distributor Sentech intends relocating its staff from Fourways, and the construction cost for a secondary building there is approximately R40 million.
Nyanda revealed that the SABC spent R815 560 for office space for 21 people in this financial year, the South African Post Office spent R32 million for 1 450 people, and the National Electronic Media Institute of South Africa spent over R4.2 million for 70 staff members and 200 students.
The Independent Communications Authority of SA also spends about R3.6 million a year on rent for administration buildings and plans to spend about R1 204 380 on new Durban offices.
Big spender
Known for big spending, Nyanda was previously under fire for extravagant purchases.
The minister had spent millions on two luxury German cars last year. Only three months into his tenure, Nyanda had purchased two BMW 750i sedans, for R2.2 million.
DA deputy shadow minister for communications Lindiwe Mazibuko previously said Nyanda's spending sent the wrong message to the public.
“The ANC government, despite being in the grips of an economic recession and regardless of the endless public commitments by president [Jacob] Zuma to cut back on wastage, has not altered its approach to public spending: it continues to misuse public funds for entirely unnecessary purposes.”
Solidarity spokesman Jaco Kleynhans slammed the minister's purchases, saying Nyanda needs to set an example through wise spending. He added that, while the minister's portfolio might not be seen as a priority, government has recognised the role of ICT in tackling key issues and the minister needs to start reflecting this.
Nyanda was also under fire for his spending on hotels in Cape Town.
A written reply to Cope MP Juli Kilian's Parliamentary questions, concerning Nyanda's accommodation in luxury Cape Town hotels and that of his staff and bodyguards, reveals the costs totalled R515 118.92 from April 2009 until March 2010. This was despite the minister being entitled to an official house.
Kilian previously said Nyanda has demonstrated no sense of public accountability and an insatiable taste for luxury.
“He earned himself the questionable title of 'caviar and silk minister' during times of economic hardship when political leaders have to tighten their belts - he sets a despicable example for the public service and the DOC.”
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