The N2 Gateway housing project has been fraught with political, rather than administrative, challenges, the national Department of Housing has said.
And the City of Cape Town - three years after it was removed from the project because of political differences with the provincial and national governments - has again been included in discussions about the management of the N2 Gateway.
A new intergovernmental agreement for the project could be on the table by September.
"After the 2006 local elections, there were issues around the project," housing director-general Itumeleng Kotsoane said.
"The (city's DA) leadership indicated they were not interested in the project. The political atmosphere affected the functioning of the project.
"Thubelisha Homes (a Section 21 company) was asked (to take over management of the N2 Gateway) more because of the political challenges than administrative challenges."
Kotsoane said work was being done to revise the original agreement signed in 2005 by the three spheres of government, and a final agreement would be ready in two months.
The acknowledgement of political influence came during yesterday's parliamentary hearing on the Auditor-General's blistering report on mismanagement and irregularities in the N2 Gateway project.
Former MEC for housing and local government Richard Dyantyi was present, but not as a member of the provincial delegation.
The standing committee on public accounts (Scopa) grilled the delegation about the decision to appoint Cyberia Technologies to manage the housing project.
The Auditor-General's office reported that the city council had begun a forensic investigation of Cyberia's contract when it came into power in 2006, but the investigation had not been completed because of a lack of documentation.
Scopa chairman Themba Godi said it was evident the final decision to appoint Cyberia Technologies - which had a low score in the bid adjudication - had been made by the then-city manager Wallace Mgoqi.
The committee raised several concerns, including whether the council had been removed from the project in 2006 or had withdrawn voluntarily.
City executive director of housing Hans Smit said: "The city was removed because of certain disagreements."
Godi asked whether, after the city council had been removed, changes were made to the memorandum of understanding signed by the three spheres of government in February 2005 and defining their roles and responsibilities.
Kotsoane said the political atmosphere after March 2006 affected the functioning of the project.
It was decided that Thubelisha take over the project.
The Auditor-General's report noted that the N2 Gateway steering committee did not meet after May 2006, but Aaref Osman, of the national Department of Human Settlements, said it had met regularly.
The meetings "were not in the same form", but there was "engagement" with the province, he said.
The Auditor-General's office noted none of these discussions had been minuted.
Smit confirmed the city had not taken part in steering committee meetings after May 2006.
After two hours of discussion, Godi postponed the meeting to August 5.
He said Scopa wanted answers to questions about what steps had been taken against those responsible for the mismanagement of the project.
And the City of Cape Town - three years after it was removed from the project because of political differences with the provincial and national governments - has again been included in discussions about the management of the N2 Gateway.
A new intergovernmental agreement for the project could be on the table by September.
"After the 2006 local elections, there were issues around the project," housing director-general Itumeleng Kotsoane said.
"The (city's DA) leadership indicated they were not interested in the project. The political atmosphere affected the functioning of the project.
"Thubelisha Homes (a Section 21 company) was asked (to take over management of the N2 Gateway) more because of the political challenges than administrative challenges."
Kotsoane said work was being done to revise the original agreement signed in 2005 by the three spheres of government, and a final agreement would be ready in two months.
The acknowledgement of political influence came during yesterday's parliamentary hearing on the Auditor-General's blistering report on mismanagement and irregularities in the N2 Gateway project.
Former MEC for housing and local government Richard Dyantyi was present, but not as a member of the provincial delegation.
The standing committee on public accounts (Scopa) grilled the delegation about the decision to appoint Cyberia Technologies to manage the housing project.
The Auditor-General's office reported that the city council had begun a forensic investigation of Cyberia's contract when it came into power in 2006, but the investigation had not been completed because of a lack of documentation.
Scopa chairman Themba Godi said it was evident the final decision to appoint Cyberia Technologies - which had a low score in the bid adjudication - had been made by the then-city manager Wallace Mgoqi.
Cyberia was awarded a R5-million contract, but cost the city R12-million.
The committee raised several concerns, including whether the council had been removed from the project in 2006 or had withdrawn voluntarily.
City executive director of housing Hans Smit said: "The city was removed because of certain disagreements."
Godi asked whether, after the city council had been removed, changes were made to the memorandum of understanding signed by the three spheres of government in February 2005 and defining their roles and responsibilities.
Kotsoane said the political atmosphere after March 2006 affected the functioning of the project.
It was decided that Thubelisha take over the project.
The Auditor-General's report noted that the N2 Gateway steering committee did not meet after May 2006, but Aaref Osman, of the national Department of Human Settlements, said it had met regularly.
The meetings "were not in the same form", but there was "engagement" with the province, he said.
The Auditor-General's office noted none of these discussions had been minuted.
Smit confirmed the city had not taken part in steering committee meetings after May 2006.
After two hours of discussion, Godi postponed the meeting to August 5.
He said Scopa wanted answers to questions about what steps had been taken against those responsible for the mismanagement of the project.
"We are dealing with public funds that have been used in an unsatisfactory way."- Cape Times
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