Premier Saul justifies move to new building

THE RELOCATION of the Office of the Premier from the JW Sauer building in Quinn Street in Kimberley to the DSC office park in Memorial Road will result in a saving for the provincial government, according to Northern Cape Premier Dr Zamani Saul.

During a press briefing this week, Saul stated that the monthly rental at the JW Sauer building, which is owned by Transnet, for 2023 was R1.6 million, compared to R1.3 million per month at the DSC building.

Saul pointed out that, in addition, the provincial government paid an average of R135,000 per month for rates and taxes at the Transnet building.

“This brings the rental at the Transnet building to R1.7 million. Moving to the new offices will save the provincial government about R350,000 per month as the owner of the DSC building is responsible for paying the rates and taxes,” said Saul.

He added that the Department of Roads and Public Works had concluded negotiations with the owner of the DSC building.

“There were no direct engagements between the owner of the DSC Office Park and the Office of the Premier for the new lease. The Department of Roads and Public Works identified three properties from the register of landlords that could accommodate staff.”

Saul stated that the department had managed to secure the lease at a lower rate per square metre compared to the previous occupants.

He indicated that the Transnet building was almost 60 years old and required intensive attention and renovation.

He added that since June 2015, they were occupying the Transnet building without any contract although they continued to pay a rental amount of R1 million.

“The contract for the Transnet office building had expired in 2014 but was extended.”

Saul stated that Transnet recorded a shortfall in the monthly rentals due to annual escalation costs of 6.5 percent.

“We refused to pay the price escalation due to the failure of the landlord to maintain the building since 2015, which brought the current monthly rental to R1.6 million.”

He added that the Office of the Premier had spent more than R4 million on maintaining the building at their own expense.

“Since 2008, we have paid a total of R132 million to Transnet and there is an amount of R64 million that Transnet recorded as arrears due to our refusal to pay the 6.5 percent annual escalations. The failure to maintain the building exposed the Office of the Premier to several embarrassing moments as a result of the deterioration of office amenities.”

Saul said he had appealed to the former Minister of Transport, Fikile Mbalula, to intervene due to the rapid deterioration of the building and the high, escalating rentals.

“There were no positive outcomes with our engagements with Transnet.”

He stated that the Department of Roads and Public Works commissioned Samex Consulting Engineers and Valuators in 2021 to assess the condition of the building.

“The report found that the rentals were above the valuation of the building. It noted defective amenities, lifts that were constantly out of order and electricity problems due to cable theft.

“The building is a fire hazard and poses a threat to the safety of employees and the preservation of government assets.

“It is no longer practical to continue occupying that space due to major health and occupational safety concerns. The constant failure of amenities and the non-availability of back-up electricity has impacted on the optimal performance of staff.

“The ablution facilities are regularly out of order leading to serious health hazards. The parking was not sufficient and safe as 90 percent of the staff used to park in the street. The air conditioners were malfunctioning and were being stolen.”

Saul stated that if they had acquired the Transnet building, as recommended in the report, it would have cost the government an additional R42 million to ensure building and safety compliance.

He said an assessment of the health and safety conditions of the building by the Department of Labour in 2020 found that, due to a lack of maintenance, the building was not compliant with a number of occupational health and safety regulations.

“The security system, ablution facilities, elevators and the fire detection system are not in good working order.

“A request for the Minister of Transport and Transnet management in 2021 to donate the building in its defective state to the provincial government was rejected.”

Saul added that Transnet instead made a counter-proposal to sell the building for R68 million.

“Along with the repair costs and R64 million in rental arrears and utilities, the total cost to renovate and maintain the building would have come to R174 million, which provincial government cannot afford. We are continuing to urge Transnet to donate the building to provincial government so that we can renovate and use it for much-needed office space.”

The premier was convinced that the relocation to the DSC building would solve the stalemate between the provincial government and Transnet.

“It will also provide a safe and conducive work environment for employees in the most cost-effective manner.”

Saul indicated that the DSC office block was the most suitable, safe and affordable accommodation for over 280 staff members.

“After all legal prescripts were followed, approval was granted for the Office of the Premier to occupy the new premises.

“Relocating to the new offices is by no means a deviation from the mandate by the Office of the Premier of serving and improving the lives of the people of this Province. We remain committed to serving the people of the Northern Cape.”

Saul pointed out that the exchequer account was in a positive bank balance of more than R200 million due to cost-cutting measures and improvements in the audit outcomes of departments.