State property recovery project; Update on proposed legislation (with Deputy Minister)

Video The Committee received a briefing on Operation Bring Back, which seeks to recover illegally occupied, hijacked, abandoned and unlawfully transferred state properties and return them to productive use. The Department reported that 2 085 additional properties had been identified through verification, 20 properties recovered, 96 identified for possible regularisation, and 166 earmarked for eviction proceedings. No court applications had yet been filed in the 166 cases. Members raised concerns about the low recovery rate, delays, expenditure and the approximately R237 million contract value involving four service providers. The Department acknowledged that progress remained below expectations and proposed a crisis management team to address implementation, legal and contractual bottlenecks. Members emphasised the need for detailed information on the properties covered by the programme, including their location, category, value, condition, current status and intended use. Concerns were also raised about whether expenditure represented value for money, particularly where legal and refurbishment costs could exceed property values. The Department explained that recovered properties varied from industrial and residential buildings to land, and that options included allocation to client departments, refurbishment, leasing, public-private partnerships or disposal. It also reported that approximately 660 additional illegally occupied properties had been identified and that 801 properties had been earmarked for disposal. Regularisation would involve qualifying occupants entering formal agreements with the Department. The Committee questioned the performance and management of service providers, including disputed invoices, payment delays and the risk of contract termination. The Department stated that payments were linked to verified contractual milestones and that disputed claims related mainly to disagreements over completed or duplicated work rather than budget constraints. Members also questioned the reliance on external service providers and the Department’s internal capacity to sustain the programme after the contracts expire in March 2027. The Department undertook to strengthen internal coordination, involve Legal Services where necessary and assess service-provider performance through the proposed internal crisis management team. The Department also briefed the Committee on progress with the CIDB Amendment Bill, Infrastructure Development Amendment Bill and CBE Amendment Bill. Processing of the CIDB Amendment Bill had been placed on hold pending the outcome of litigation concerning the Public Procurement Act, while work on the Infrastructure Development Amendment Bill continued through engagements on the restructuring of Infrastructure South Africa. The CBE Amendment Bill remained a departmental priority and was intended for parliamentary processing before the end of the 2026/27 financial year. Members questioned the consistency of the Department’s approach to the three Bills and requested clarification on whether the litigation had implications for the other Bills. The Department undertook to provide a written response and legislative roadmap. The Committee directed the Department to submit outstanding information within seven days, including detailed property and recovery data, information on the 166 legal matters, service-provider performance and contractual disputes, and the reasons for the different treatment of the Bills. Members also requested regular reporting on actual outcomes under Operation Bring Back and raised concerns about persistent late submission of departmental reports. The Committee emphasised the need for stronger internal capacity, coordination with client departments and other spheres of government, and effective plans for properties after recovery to prevent renewed occupation. The Deputy Minister acknowledged the concerns regarding service-provider dependency and the proposed crisis management structure and undertook to address these matters internally.