Thursday, August 6, 2009

'Unrealistic' expectations for N2 housing

Politicians placed "intense pressure" on officials to build an "unrealistic" 22,000 houses for Cape Town's troubled multi billion rand N2 Gateway Project, city officials said in Parliament on Thursday.

City manager Achmat Ebrahim said in a written reply to questions from Parliaments Standing Committee on Public Accounts (Scopa) that municipal, provincial and national politicians involved in the project had ignored concerns raised by city officials.

"The N2GP was intensely driven from a political level that totally ignored all protests from the administration," Ebrahim said.

The aim of the N2GP was to provide housing adjacent to the N2 Highway between Bhunga Avenue near Langa and Boys Town in Crossroads.

'The city attempted to do what was possible.'
A report by the Auditor General found a number of irregularities in the project, which since its launch had been dogged by protests and a series of court challenges over evictions from the informal settlements it was supposed to replace.

Concerns of city officials included the unrealistic timeframe of six months to build 22,000 houses, a lack of funding, land availability and resources and an "unacceptable policy background".

"It normally takes 28 months to commence such a project," Ebrahim said.

"There were a number of technical aspects that needed to be considered such as a feasibility study incorporating land, services and geo-technical aspects."

Ebrahim had been informed by officials involved in the project that they felt that they were left with only two options, either "resign" or "do your best".

'Somebody needs to go to jail.'
"They were of the opinion that once the project managers were appointed it would become clear that the political expectations were unreasonable and that there was no money," he said.

Mike Marsden, Cape Town's executive director of service delivery integration, told the committee that the politicians involved in the project were told "on a number of occasions" that the time frame for the project "was not achievable".

"The situation -- to provide 22,000 houses in six months -- was explained to politicians as not being realistic," Marsden said.

Despite this, it was indicated that the delivery of 22,000 houses was "not negotiable".

"The contention that we failed is against an unrealistic benchmark," Marsden said after a Scopa official accused the city of "failing" in the project and indulging in "fruitless" and "wasteful" expenditure.

"The city attempted to do what was possible."

Committee chairman Themba Godi said it was clear that decision on the project had been made at a political level.

"I am aware that when Cabinet approves something, it was brought to them by the Minister of Housing (at the time Lindiwe Sisulu)."

"The officials can't give us answers because the decisions were taken at a political level."

Committee member Mark Steele said if political pressure had been brought on the city it was necessary to bring the politicians who had approved the project before the committee.

Officials involved in the N2GP were also questioned on the decision to appoint an information technology company, Cyberia, to project manage N2GP.

Cyberia, which has since been removed from the project, had no experience in the construction industry and was initially listed as sixth on the list of recommended tenders.

It was selected after its tender was rescored by four members of The Goods Services and Property Advisory Board (GSPAB).

"Cyberia was experienced in IT and business skills which were not needed in this instance and therefore it is not understood why armed with this knowledge the GSPAB changed the score," Ebrahim said.

Cyberia, which was paid out around R12 million, was removed from the project in 20005 after it was felt that it was not doing the job.

Scopa member Narend Singh said somebody needed to be "brought to book" on the matter.

"That contract should not have been awarded," he said.

"Somebody needs to go to jail."
- Sapa


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