Gateway ‘could be delayed by five years’
Completion of the N2 Gateway housing development, scheduled for December, could be delayed by at least five years, while the City of Cape Town will have to pay an outstanding R34-million for the units already built.
This was said on Monday by Neil Ross, chairperson of the City’s housing portfolio committee, who said he had been informed by Thubelisha Homes - the section 21 company appointed as project managers in February when the provincial housing department took over the project from the City - that “unless extra money comes from province, the projected finish time for the project is five years from now”.
In June 2005, the City’s audit committee said the total N2 Gateway project would cost R2,3-billion and that 22 000 residential units would be completed by December 2006.
Dogged by financial problems
“The major problem is with the construction of the flats,” said Ross. Instead of costing the projected R80 000 per unit, each flat’s top structure cost over R120 000. “Council will have to pay for this overrun.”
These shock revelations come soon after the call, made earlier this month by the housing committee, for an urgent forensic audit into the awarding of a R12-million contract for N2 Gateway to Cyberia Technologies.
Although Cyberia’s contract was terminated in January, former city manager Wallace Mgoqi approved the allocation of an additional R4-million to the firm, without referring the matter to council.
Ross said the request for an urgent forensic audit into this closed bid had been sent to the executive mayoral committee (mayco).
He said the extended contract period “gave light” to concerns that the N2 Gateway project has been dogged by financial problems.
First handover a year later than scheduled
In November last year, the Cape Times received a copy of confidential correspondence sent by Vula Joint Venture, one of the consortiums contracted by the City to the N2 Gateway management project, referring to a meeting where the City admitted to funding shortfalls.
It read: “The City advised that as a result of cash-flow problems which existed, relating to the funding of the N2 Gateway Projects, it was necessary to review the projects… currently in progress.”
Ross said revised figures for the project, incorporating the new time frame set by Thubelisha, were not yet available.
Vusi Tshose, spokesperson for Western Cape Local Government and Housing MEC Richard Dyantyi, said the first families would move into completed units at the Joe Slovo informal settlement at the end of May.
This is nearly a year later than the initial handover date scheduled for June 2005.
A senior councillor who declined to be named said it was unlikely these families would move in this year, as the location of the development and suitability of the land was being investigated.
Tshose said work on the next phase “was already happening” but could not comment on Thubelisha’s five-year prediction for completion of the Gateway project. - Cape Times
Completion of the N2 Gateway housing development, scheduled for December, could be delayed by at least five years, while the City of Cape Town will have to pay an outstanding R34-million for the units already built.
This was said on Monday by Neil Ross, chairperson of the City’s housing portfolio committee, who said he had been informed by Thubelisha Homes - the section 21 company appointed as project managers in February when the provincial housing department took over the project from the City - that “unless extra money comes from province, the projected finish time for the project is five years from now”.
In June 2005, the City’s audit committee said the total N2 Gateway project would cost R2,3-billion and that 22 000 residential units would be completed by December 2006.
Dogged by financial problems
“The major problem is with the construction of the flats,” said Ross. Instead of costing the projected R80 000 per unit, each flat’s top structure cost over R120 000. “Council will have to pay for this overrun.”
These shock revelations come soon after the call, made earlier this month by the housing committee, for an urgent forensic audit into the awarding of a R12-million contract for N2 Gateway to Cyberia Technologies.
Although Cyberia’s contract was terminated in January, former city manager Wallace Mgoqi approved the allocation of an additional R4-million to the firm, without referring the matter to council.
Ross said the request for an urgent forensic audit into this closed bid had been sent to the executive mayoral committee (mayco).
He said the extended contract period “gave light” to concerns that the N2 Gateway project has been dogged by financial problems.
First handover a year later than scheduled
In November last year, the Cape Times received a copy of confidential correspondence sent by Vula Joint Venture, one of the consortiums contracted by the City to the N2 Gateway management project, referring to a meeting where the City admitted to funding shortfalls.
It read: “The City advised that as a result of cash-flow problems which existed, relating to the funding of the N2 Gateway Projects, it was necessary to review the projects… currently in progress.”
Ross said revised figures for the project, incorporating the new time frame set by Thubelisha, were not yet available.
Vusi Tshose, spokesperson for Western Cape Local Government and Housing MEC Richard Dyantyi, said the first families would move into completed units at the Joe Slovo informal settlement at the end of May.
This is nearly a year later than the initial handover date scheduled for June 2005.
A senior councillor who declined to be named said it was unlikely these families would move in this year, as the location of the development and suitability of the land was being investigated.
Tshose said work on the next phase “was already happening” but could not comment on Thubelisha’s five-year prediction for completion of the Gateway project. - Cape Times
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