MINISTER of Public Works Thulas Nxesi yesterday said that scores of government leases in the Eastern Cape will be coming under the microscope.

Nxesi said at a pre-budget news conference that he had ordered a review of about 3,800 leases worth more than R3-billion a year signed by his department on behalf of other ministries.

He said if they were found to have been padded or in any other way fraudulent, the government would try to get the overpaid rentals back.

He said that 196 leases with an annual value of R65.3-million that were signed by an office in Mthatha would be investigated as well as another 366 worth R203.3-million a year signed in Port Elizabeth.

The government will also develop a national price preference system to curb overcharging by service providers.

Nxesi said the objective of the audit was to:

• Identify irregular leases and take necessary action,
• Collect outstanding funds owed to the department,
• Establish a reliable lease register, and
• Review lease and property management systems of the department.

He said the government would also attempt to recover monies lost if it could be established that it had been defrauded.

The audit will be conducted jointly with the National Treasury.

Nxesi admitted that his department lacked the capacity to manage government's massive lease portfolio, hence the decision to request help from the National Treasury.