The City of Cape Town should "walk away" from the N2 Gateway project if national government does not commit funds to finish the development.
This is the warning from the city's chief financial officer, Mike Richardson, who has urged the council to be "extremely circumspect" about committing to any further involvement in the controversial housing project.
The N2 Gateway was initially managed by all three levels of government, but when the DA took over the City of Cape Town in 2006, cracks in the three-tier partnership emerged.
The city council was removed from the controversial pilot project that year and Thubelisha Homes was appointed as developer.
The national government wanted to build 22 000 housing units. By April 2009, only 11 ,37 of the first phase's 15,000 units were complete.
Human Settlements Minister Tokyo Sexwale has said it would cost in excess of R1,5-billion to finish the project.
There was no business plan when the city was removed four years ago. But the province, eager to wrap up the first phase, has drafted a new business plan that could require city resources and funds.
Housing MEC Bonginkosi Madikizela said yesterday the province wanted the city to "take centre stage" as the developer for the second phase.
But the city is firm that it will not allocate funds or resources to the province's business plan for the first phase and will only consider future phases of the project at a later date.
The mayoral committee yesterday rejected the business plan. Richardson said the city's housing subsidy allocation for the next five years was fully committed and there should be "absolutely no presumption" of available funds.
But Madikizela said the national government had already committed R480-million that could be used for any housing projects, including bulk services and the N2 Gateway.
Although referred to as "N2 Gateway", many of the housing projects in phase one were in areas that fell under the city's jurisdiction.
The city was obliged to provide services.
City executive director of housing Hans Smit said the plan assumed the city would provide funding, and accept responsibility for project outcomes such as managing clinics, rental stock and other community facilities.
Director of roads and stormwater Henry du Plessis said houses were built in Delft Symphony without city approval and the design of engineering services on the project did not comply with city specifications.
Smit said all non-compliant work done on the project to date had to be rectified before the business plan could be approved.
The city would only get involved if additional funding was allocated from external sources for the next five years.
This is the warning from the city's chief financial officer, Mike Richardson, who has urged the council to be "extremely circumspect" about committing to any further involvement in the controversial housing project.
The N2 Gateway was initially managed by all three levels of government, but when the DA took over the City of Cape Town in 2006, cracks in the three-tier partnership emerged.
The city council was removed from the controversial pilot project that year and Thubelisha Homes was appointed as developer.
The national government wanted to build 22 000 housing units. By April 2009, only 11 ,37 of the first phase's 15,000 units were complete.
Human Settlements Minister Tokyo Sexwale has said it would cost in excess of R1,5-billion to finish the project.
There was no business plan when the city was removed four years ago. But the province, eager to wrap up the first phase, has drafted a new business plan that could require city resources and funds.
Housing MEC Bonginkosi Madikizela said yesterday the province wanted the city to "take centre stage" as the developer for the second phase.
But the city is firm that it will not allocate funds or resources to the province's business plan for the first phase and will only consider future phases of the project at a later date.
The mayoral committee yesterday rejected the business plan. Richardson said the city's housing subsidy allocation for the next five years was fully committed and there should be "absolutely no presumption" of available funds.
But Madikizela said the national government had already committed R480-million that could be used for any housing projects, including bulk services and the N2 Gateway.
Although referred to as "N2 Gateway", many of the housing projects in phase one were in areas that fell under the city's jurisdiction.
The city was obliged to provide services.
City executive director of housing Hans Smit said the plan assumed the city would provide funding, and accept responsibility for project outcomes such as managing clinics, rental stock and other community facilities.
Director of roads and stormwater Henry du Plessis said houses were built in Delft Symphony without city approval and the design of engineering services on the project did not comply with city specifications.
Smit said all non-compliant work done on the project to date had to be rectified before the business plan could be approved.
The city would only get involved if additional funding was allocated from external sources for the next five years.
- Cape Times
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