The Minister of Public Works and Infrastructure, Dean Macpherson, has confirmed that the Department of Public Works and Infrastructure has terminated a lease agreement with Medicare 24 Tshwane District for a hospital facility in Pretoria West, following serious governance and compliance concerns.
The termination follows allegations raised in a Parliamentary Ad hoc Committee and subsequent media investigations, which questioned how the lease was concluded. In response, Minister Macpherson requested an internal investigation by the Department to assess the legality and governance processes underpinning the agreement.
The investigation found that the lease agreement, entered into in December 2023, could not lawfully take effect because the hospital facility had not been declared surplus to the operational requirements of the South African Police Service. In terms of the Government Immovable Asset Management Act, 2007, SAPS remains the designated user of the facility and departmental records confirm that it is still required for service delivery purposes.
The declaration of a state-owned property as surplus is a legal prerequisite before any lease can be implemented. Based on these findings, and to ensure compliance with legislation and good governance principles, the Department issued a notice terminating the lease with immediate effect.
Minister Macpherson said the decision was taken to protect public assets and prevent any potential misuse of public funds. He noted that once the allegations were brought to his attention, decisive steps were taken to verify the facts and act in the public interest.
The Department has also announced that it will proceed with a comprehensive internal investigation to determine whether any officials acted improperly in authorising the lease. Information relating to possible wrongdoing will be shared with law enforcement agencies to ensure accountability where required.
According to the Minister, these actions form part of a broader commitment to strengthen governance, uphold the rule of law, and ensure that public infrastructure is used responsibly and for the benefit of South Africans.
