Cape Town – The Economic Freedom Fighters (EFF) have expressed outrage over what they describe as the Department of Defence’s (DOD) wasteful expenditure of more than R110 million on the St George’s lease.
This follows revelations that the DOD spent over R110 million in just two years leasing the St George’s Hotel in Pretoria to house the South African National War College and the South African National Defence College.
In a statement, the EFF said the spending amounts to “wasteful and criminal expenditure” at a time when the South African National Defence Force is grappling with severe financial constraints and operational crises.
“The EFF condemns this in the strongest terms as a corrupt scheme designed to bail out the African National Congress (ANC) from its own financial mismanagement.
“For years, the St. George’s Hotel has been a cozy haven for the ANC elite, hosting numerous National Executive Committee (NEC) meetings, policy conferences, and lekgotlas.
“It is no secret that the ANC accumulated millions of rands in rental arrears and other outstanding costs at this very venue, turning it into a symbol of the party’s extravagant and unaccountable lifestyle”, said EFF.
The EFF Outraged by R110 Million Wasteful Expenditure by Department of Defence on St. George’s Lease
-When the DOD inexplicably entered into this lease agreement at wildly inflated rates the timing and circumstances raised immediate red flags. The EFF has long warned that this… pic.twitter.com/yuKXM5Sduq
— Economic Freedom Fighters (@EFFSouthAfrica) September 16, 2025
According to the EFF, the DOD entered into the lease agreement at a time when rates were highly inflated, raising suspicions about the timing and circumstances, which the party said immediately set off red flags.
The party warned that the deal “reeks of a quid pro quo arrangement,” alleging that the DOD’s payout effectively settled the ANC’s massive debt to the hotel owners, shielding the party from accountability while diverting taxpayer money into private pockets.
The EFF said that R61,704,400 was spent between February 2022 and March 2023 for the facility, while an additional R46 million was added between April 2023 and June 2024 when the lease ended.
The department claimed that the maintenance, facility management, and utilities were the landlord’s responsibility, removing itself of direct costs in those areas.
However, additional payments were incurred upon termination because the DOD, incompetency in lacking the internal capacity to handle these functions immediately.
“This admission only underscores the incompetence and poor planning involved. Funds were drawn from the defence estate budget and managed through cash flow, with no specific allocation for such leases, as payments were typically handled via the Department of Public Works and Infrastructure (DPWI).
“The urgency of the relocation stemmed from disputes over previous facilities — one no longer available due to renewal disagreements, and another with unacceptable terms from the landlord.
“As a result, the training command moved to Thaba Tshwane, displacing the defence college to St. George’s”, said EFF.
The EFF has called for a comprehensive forensic audit into the lease agreement, seeking to establish how it was negotiated, approved, and executed.
The party wants clarity on who the key decision-makers were, as well as any possible connections between the hotel owners, ANC officials, and DOD personnel.
It further insists that the link between the ANC’s longstanding debt to St. George’s and the DOD’s excessive payout be thoroughly investigated.
“Furthermore, the EFF urges the Directorate for Priority Crime Investigation (HAWKS) to launch an urgent criminal investigation into this matter.
“This is potentially fraudulent and constitutes corrupt conduct under the Prevention and Combating of Corrupt Activities Act. No one is above accountability, and the era of impunity for the ANC’s cronies must end now”, said the EFF.
The party said they will not rest until this scandal is exposed and stand firm their commitment to fighting corruption and reclaiming resources for the people.
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Compiled by Anda Tolibadi
