Monday, May 31, 2010

R100m housing fiasco - Only four houses make the grade

More than R100-million has been spent on two massive housing projects in North West - but there are only four low-cost government homes to show for the money.

'300 of 470 houses are uninhabitable . the contractor was erroneously overpaid by R27m'

On the outskirts of Vryburg, near the Northern Cape border, the provincial government spent more than R86-million on building 470 houses, but only four have been satisfactorily completed.

Three hundred of the houses are uninhabitable - their foundations and walls do not conform to specifications and building standards.

The remaining 166 houses are being checked.

Vryburg's town manager, George Mthimunye - sent to administer the town in July by Co-operative Governance Minister Sicelo Shiceka and North West human settlements MEC Desbo Mohono - has ordered that the defects be corrected.

Vryburg municipality is now partially administered by the provincial government

About 300km away in Meriting extensions 3 and 4, in Rustenburg, the government spent more than R28-million on 1930 low-cost houses. But they were so shoddily built that they will have to be demolished.

Mthimunye said: "The foundations [of the Vryburg houses] are faulty, some of them are half-built and some are built up to roof level. But most, if not all, have defects according to a report I got from our building inspector."

Mthimunye said Khasu Engineering, which was contracted to deliver 3000 houses by the end of July, is taking the municipality to court, claiming that R4.7-million is owed to it.

This, Mthimunye said, is despite the fact that he discovered that Khasu was "erroneously overpaid" by R27-million.

He said he had given the company an ultimatum to fix the 300 houses by December 15, but Khasu had refused.

"They say they will only correct the [defective] houses at the end of the project," he said.

This, Mthimunye said, was unlikely to happen as Khasu had not been on site since October, claiming there was no money left to continue with the project.

"It's a major headache for me. I will terminate the contract and get a new company, and see how many houses we can get from the remaining money.

"We will have to look for another contractor, which will demand more money. We are starting the project afresh, two years down the line," Mthimunye said.

A government house costs R55000 to build, according to the department of human settlements website.

Mthimunye said the contract with Khasu was flawed from the start because it was not put out to tender. It was awarded in 2007.

The company was awarded the contract by the former municipal administration, which allegedly flouted procurement procedures.

As a result, Mthimunye said, he asked the National Prosecuting Authority's special investigation unit to investigate.

But the Vryburg municipality's council is far from delighted that the investigation has begun.

"There is no support. In fact, I am a problem to the council itself. Last week, they took a resolution that we must pay [Khasu the R4.7-million it claims]. They said if I don't pay, I will be in defiance and I will be charged," he said.

At least one councillor has threatened to charge Mthimunye with insubordination if he does not pay Khasu speedily.

"I told her to do as she pleases because I won't pay."

When The Times approached Khasu general manager Christo van Niekerk, he refused to comment, saying the case was sub judice.

Meanwhile, in Rustenburg, "not a single house has been completed" by another housing contractor.

"Something went terribly wrong. Along the way the [Rustenburg] municipality realised that the work was not of good quality. They were stopped, and the contractor took them to court," said Mohono, who was not able to identify the contractor.

"All the 1930 structures and the foundations will have to be destroyed. We have huge problems with almost all housing projects. The municipality must try to recoup the money."

Henry Hartley, a DA councillor in Rustenburg, said the builder had been paid about R28-million of the R45-million contract for 1950 low-cost homes.

"It is unsafe for any human being to occupy those houses, whether completed or not.

"We will now need about R71-million to rectify all the houses. The whole thing will have to be redone," he said.

Human Settlements Minister Tokyo Sexwale last year said that it would cost R1.3-billion to rebuild houses that had been poorly built.

About 3000 of such houses were in North West and Eastern Cape.

- Times Live

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