Costs of rebuilding parliament are heavy, Treasury says

The Treasury has raised concerns about the estimated cost of restoring parliament’s gutted buildings, including the estimates for the structure that may be erected as a temporary measure.

The department wants parliament to reconsider the erection of such a structure.

In a document seen by TimesLIVE due to be presented to parliament on Wednesday, the Treasury expresses concern over the estimated costs. The document was shared with MPs ahead of the meeting of the joint standing committee on the financial management of parliament and the Treasury scheduled for Wednesday evening.

The concerns also relate to accountability and monitoring, with the Treasury saying reputable service providers for the implementation and the monitoring of the project were crucial elements.

It also wants parliament to implement cost-containment measures to support successful implementation of the project.

In the presentation, the Treasury raises concern about corruption and said the budget for the project should be managed according to procurement policy and financial control measures. It also questioned the 15% contingency costs [R10.6m] parliament included in its short-term cost estimates, saying the budget should be narrowed to be within the planned project.

It wants clarity on whether the budget for the restoration of parliament should go to the legislature or to the department of public works and infrastructure.

The fixed and movable assets of the parliamentary precinct fall under the custodianship of public works and infrastructure, but TimesLIVE understands that due to rampant corruption and delays in that department, parliament wants to be in charge of the rebuilding process.

The Sunday Times reported in August that repairs and reconstruction following the fire that raged through the parliamentary precinct in January were expected to cost R2bn and take at least three years to complete.

This was after the newly appointed secretary to the national legislature, Xolile George, told a meeting of the joint standing committee on financial management of parliament that the department of public works and infrastructure estimated it would cost R1.4bn to reconstruct the two affected buildings, the New Wing and the Old Assembly, with another R600m needed to replace damaged furniture, ICT infrastructure and other facilities.

Parliament’s political bosses will have to decide whether to build a temporary modular structure with office and meeting spaces as an interim measure while the permanent buildings are being restored. George said such a structure would cost R659.6m. But even that was unlikely be ready in less than two years.

“It will require policy decisions. If we proceed [with an interim structure], what happens on the issue of restoration? Do they proceed simultaneously? Are they immediately presenting us with options about accommodation that would create permanence?

“Those policy decisions will be presented for decision-making at the level of executive authority,” George said at the time.

He indicated to that meeting that he had discussed the reconstruction plans with Treasury officials, who asked for more details of the assessment by the department of public works.

He said Treasury wanted to conduct its own inspection of the damage. 

Parliament is hoping finance minister Enoch Godongwana will announce an allocation to start rebuilding when he tables his medium-term budget policy statement in October.

Meanwhile, parliament informed the Treasury of its intentions to establish an advisory panel that would assist in recovery efforts and asked for expertise from finance and resourcing. The Treasury committed to assisting, according to the document.

TimesLIVE