According to its financial statements for the previous financial year Thubelisha Homes is "technically insolvent", but it will continue with projects such as the N2 Gateway in the short term.
The Housing Development Agency will soon take over the Thubelisha's responsibilities, including the N2 Gateway.
The agency - a merging of Thubelisha Homes and Servcon - was announced last year by Minister of Housing Lindiwe Sisulu. It will have the job of finding suitable land for housing and management staff.
National housing spokesperson Xolani Xundu said Thubelisha Homes would continue with its work until the agency was launched, probably in August.
Thubelisha presented its dismal performance review to Parliament's portfolio committee last month. The presentation revealed that not a single target had been achieved.
Prince Xhanti Sigcawu of Thubelisha admitted the shortcomings of the company, but said the ineffective working relationship between the three spheres of the government was partly to blame.
"The reality of the matter is we did not deliver the mandate we had set for ourselves. And you cannot point fingers at Thubelisha Homes about that.
"The spheres of government contributed to that by not working together as initially agreed upon."
Sigcawu said when Thubelisha Homes presented its financial statements to Parliament it did not highlight "the monies still owed by the City of Cape Town" - said to be about R160-million - which would help its financial situation. Sigcawu said the company had formally claimed the money from the city, with the necessary supporting documents.
"Circumstances forced us to pay contractors from our own coffers and that led to the state of our finances," Sigcawu said.
But the city countered in a statement: "Thubelisha Homes consistently failed to provide the necessary documentation that would allow the city to legally pay it for work done in terms of the Municipal Financial Management Act.
"The city currently has R60-million in a discretionary fund that it has been waiting to pay Thubelisha, but which it cannot because Thubelisha has not carried out its contractual obligations."
The Housing Development Agency will soon take over the Thubelisha's responsibilities, including the N2 Gateway.
The agency - a merging of Thubelisha Homes and Servcon - was announced last year by Minister of Housing Lindiwe Sisulu. It will have the job of finding suitable land for housing and management staff.
National housing spokesperson Xolani Xundu said Thubelisha Homes would continue with its work until the agency was launched, probably in August.
Thubelisha presented its dismal performance review to Parliament's portfolio committee last month. The presentation revealed that not a single target had been achieved.
Prince Xhanti Sigcawu of Thubelisha admitted the shortcomings of the company, but said the ineffective working relationship between the three spheres of the government was partly to blame.
"The reality of the matter is we did not deliver the mandate we had set for ourselves. And you cannot point fingers at Thubelisha Homes about that.
"The spheres of government contributed to that by not working together as initially agreed upon."
Sigcawu said when Thubelisha Homes presented its financial statements to Parliament it did not highlight "the monies still owed by the City of Cape Town" - said to be about R160-million - which would help its financial situation. Sigcawu said the company had formally claimed the money from the city, with the necessary supporting documents.
"Circumstances forced us to pay contractors from our own coffers and that led to the state of our finances," Sigcawu said.
But the city countered in a statement: "Thubelisha Homes consistently failed to provide the necessary documentation that would allow the city to legally pay it for work done in terms of the Municipal Financial Management Act.
"The city currently has R60-million in a discretionary fund that it has been waiting to pay Thubelisha, but which it cannot because Thubelisha has not carried out its contractual obligations."
Thubelisha's presentation to the portfolio committee revealed the company had targeted a profit of R49,5-million and instead made a loss of R67,5-million. The company had handed over only 2,889 of the 5,422 built houses. Its target had been to hand over 16,290 houses.
- Cape Argus
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Q: What does the makoekoe's fence want to be when it grows up?
A: A Ringfence!
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