WASTEFUL EXPENDITURE
Minister calls for probe into GEMS lease as R60,000 a month offices stand empty
The Government Employees Medical Scheme (GEMS) has admitted to blowing hundreds of thousands of rands of its members’ contributions to pay for an empty building for a year. GEMS has been forking out more than R60,000 a month to Mowana Properties for its North West regional office in Borekelong House in Mahikeng since September 2017, without occupying it. The rental expenditure has resulted in Public Service and Administration Minister Ayanda Dlodlo calling for an investigation into the matter. Instead of occupying the office space, GEMS opted to rent the Kobo Segole Guest House conference room for R31,000 a month. Insiders said that this has been categorised as "wasteful expenditure", but no one has been held responsible. Mowana Properties on Friday confirmed collecting monthly rentals from GEMS coffers as per the "legally-binding" lease agreement between the two parties. Company spokesperson Ignatius Sathekge said Mowana was not responsible for GEMS’s failure to occupy the office s...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.