Share

Sassa owes millions in outstanding municipal bills

accreditation
0:00
play article
Subscribers can listen to this article
News24/File
  • A number of Sassa offices haven't paid rent for years and owe millions.
  • Sassa listed at least 19 offices which had outstanding rent bills, of which seven are in KwaZulu-Natal.
  • Sassa said that despite the non-payment of rent, the offices are still "operating at full capacity".
  • For more financial news, go to the News24 Business front page.


The South African Social Security Agency (Sassa)'s Durban District office hasn't paid its rent for over five years and owes over R6 million, while the Northern Cape's Ritchie Local Office has not paid rent for ten years.

These are just a few of the answers given by the state agency in a parliamentary response in November 2022 to DA MP Bridget Masango's question about outstanding rent at different Sassa offices.

Delays with municipalities issuing invoices or sending the wrong invoices have caused these payment challenges, according to Sassa spokesperson Paseka Letsatsi.

Sassa listed at least 19 offices which had outstanding rent bills, of which seven are in KwaZulu-Natal. Sassa told GroundUp that it has since only paid the rent to some of these offices.

In the Eastern Cape, the Nelson Mandela Metro District Office, housed in a Post Office building in Gqeberha, has just over R1 million outstanding rent. Sassa said that its regional management has withheld payment here until the Post Office resolves some Occupational Health and Safety non-compliance related issues. Letsatsi said that this office was closed in December 2021 and is expected to reopen in February 2023.

Similarly, the Kempton Park satellite office in Gauteng has not been paid for several months. Sassa said that invoices received in October 2022 were incorrect. The municipality was asked to amend the invoices and provide new banking details but no amended invoices have been received since, according to Sassa.

In the Northern Cape, the Ritchie Local Office has not paid its rent in a decade. Letsatsi said that Sassa is still in negotiations with the landlord.

Sassa said invoices for municipal services have not been issued for its Phillipstown and Noupoort offices. Phillipstown municipal services haven't been paid for over six years while Sassa disputes the rent amount due for the building it shares with the municipality. Noupoort hasn't paid its municipal bill for over eight years due to a "discrepancy".

Letsatsi said that "most challenges for non-payment of rent are due to either delay in municipalities issuing invoices or the invoices sent being incorrect". Despite sending monthly reminders to municipalities, there is often no response, he said.

KwaZulu-Natal had the most offices with outstanding rent, some of which had been outstanding for several years. The Archie Gumede office's rent hasn't been paid for nearly ten years. The Durban District office also hadn't paid its rent for over five years and owed over R6 million.

Sassa said that despite the non-payment of rent, the offices are still "operating at full capacity".

 

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.76
+1.4%
Rand - Pound
23.43
-0.0%
Rand - Euro
20.08
-0.0%
Rand - Aus dollar
12.25
-0.0%
Rand - Yen
0.12
-0.0%
Platinum
924.10
0.0%
Palladium
959.00
0.0%
Gold
2,337.68
0.0%
Silver
27.19
-0.0%
Brent Crude
89.50
+0.6%
Top 40
69,358
+1.3%
All Share
75,371
+1.4%
Resource 10
62,363
+0.4%
Industrial 25
103,903
+1.3%
Financial 15
16,161
+2.2%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders