The provincial department of local government and housing has spent almost R92-million on the N2 Gateway project without a formal business plan.
This has been disclosed in the auditor-general’s report, included in the department’s 2005/2006 annual report made public this week.
According to the auditor-general’s report, the decision to go ahead with the project flouted a memorandum of understanding signed by national Minister of Housing Lindiwe Sisulu, MEC for local government and housing Richard Dyantyi and then-mayor of Cape Town Nomaindia Mfeketo. M3.
Vusi Tshose, spokesperson for the provincial department of local government and housing, said the department had had to go ahead with the project before approval was finalised because of the “great pressure for housing delivery” in the province.
Had the department waited for the business plan to be finalised, development “would have been delayed”, he said.
Under the N2 Gateway project, begun last year and touted as a national pilot for low-income housing, about 22 000 units are to be built for low-income earners in Langa, Gugulethu, Crossroads and Airport Industria.
But by October 13, only 326 units had been allocated to beneficiaries since the first phase of the project was officially opened on July 17.
The auditor-general’s report noted that of the R91 913 076 used, R6,5-million had been spent in planning and designing units for the Boystown informal settlement, which is included in Gateway. The people of Boystown rejected the plans.
They say they have waited more than 20 years for formal housing. But when the department proposed building blocks of flats, they rejected the plan, demanding “proper houses”.
They said they were not consulted and one of their requirements was that they have a yard in which they could perform traditional rituals.
A member of the Boystown residents committee, Mlungisi Noludwe, said people living in the settlement were “never interested in N2 Gateway flats and were forced to accept the plan”.
failed promises
“People … have concerns about the flats, such as ownership,” said Noludwe.
The R6,5-million was paid by the City of Cape Town, but later reimbursed by the provincial department of housing.
The auditor-general’s report said the amount had not been “accounted and disclosed accordingly” in the department’s financial statements.
Tshose said the project had been stopped when it was found “the cost of the construction would exceed the subsidy”.
DA provincial spokesperson on housing Michael de Villiers said the project was a “huge failure and unfortunate waste of valuable funds” intended for housing the homeless. He said Dyantyi had costed each unit at R80 000, excluding the rehabilitation of the land, at the start of the project, but this had risen to R120 000 by May.
“This was a result of lack of planning.” - West Cape News
This has been disclosed in the auditor-general’s report, included in the department’s 2005/2006 annual report made public this week.
According to the auditor-general’s report, the decision to go ahead with the project flouted a memorandum of understanding signed by national Minister of Housing Lindiwe Sisulu, MEC for local government and housing Richard Dyantyi and then-mayor of Cape Town Nomaindia Mfeketo. M3.
Vusi Tshose, spokesperson for the provincial department of local government and housing, said the department had had to go ahead with the project before approval was finalised because of the “great pressure for housing delivery” in the province.
Had the department waited for the business plan to be finalised, development “would have been delayed”, he said.
Under the N2 Gateway project, begun last year and touted as a national pilot for low-income housing, about 22 000 units are to be built for low-income earners in Langa, Gugulethu, Crossroads and Airport Industria.
But by October 13, only 326 units had been allocated to beneficiaries since the first phase of the project was officially opened on July 17.
The auditor-general’s report noted that of the R91 913 076 used, R6,5-million had been spent in planning and designing units for the Boystown informal settlement, which is included in Gateway. The people of Boystown rejected the plans.
They say they have waited more than 20 years for formal housing. But when the department proposed building blocks of flats, they rejected the plan, demanding “proper houses”.
They said they were not consulted and one of their requirements was that they have a yard in which they could perform traditional rituals.
A member of the Boystown residents committee, Mlungisi Noludwe, said people living in the settlement were “never interested in N2 Gateway flats and were forced to accept the plan”.
failed promises
“People … have concerns about the flats, such as ownership,” said Noludwe.
The R6,5-million was paid by the City of Cape Town, but later reimbursed by the provincial department of housing.
The auditor-general’s report said the amount had not been “accounted and disclosed accordingly” in the department’s financial statements.
Tshose said the project had been stopped when it was found “the cost of the construction would exceed the subsidy”.
DA provincial spokesperson on housing Michael de Villiers said the project was a “huge failure and unfortunate waste of valuable funds” intended for housing the homeless. He said Dyantyi had costed each unit at R80 000, excluding the rehabilitation of the land, at the start of the project, but this had risen to R120 000 by May.
“This was a result of lack of planning.” - West Cape News
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