News - Development: Housing project hits dead end
Launched amid much fanfare in 2007, the housing project to build middle-income houses in Joe Slovo in Langa has failed to deliver. Only 43 of the promised hundreds of houses have been completed, and even these stand empty months after their completion, with the criteria for acquiring a house having changed dramatically.The project, called the Joe Slovo Vision Village, saw a partnership between the government and First National Bank to build hundreds of homes as part of the government's N2 Gateway housing project.FNB invested more than R900-million in the N2 Gateway for the building of the bonded houses, some of which were to be built in Delft.
The Cape Argus has been unable to establish how much of the R900m has been spent as the national Department of Human Settlements has failed to respond to telephone calls and e-mailed questions.
Unveiling the project in June 2007, then Housing Minister Lindiwe Sisulu said the project would build 3 000 bonded houses as part of phase two of the N2 Gateway project, to benefit households with a joint income of between R3 500 and R7 500. Unit prices would range from R150 000 to R250 000.
FNB's Jan van der Walt explained that the bank had agreed in 2007 to develop and build approximately 550 housing units in the affordable range in support of the government's "Breaking New Ground" policy.But by today, only 30 prospective buyers have been approved by the bank. And the criteria that applicants have to meet to be considered as prospective buyers require a household income of no less than R6 500 (depending on the type of the unit), permanent employment, and an acceptable credit record.The prices of the housing units have also gone up, starting at R' 000, increasing in value and size up to R594 000.
Van der Walt said the initiative was to be integrated into and form part of the larger development known as Joe Slovo, the latter being one of the land development areas comprising the N2 Gateway project.But the community of Joe Slovo protested against the idea of such integration and staged mass action, which saw the vandalisation of construction and equipment in the first phase, at a cost of R2,2m.This was followed by a high court action, in which Sisulu was granted an interdict restraining the community from further destruction, or interfering with the development.Van der Walt said notwithstanding the court ruling, a decision was made to limit the development, and FNB would only proceed with the first phase, comprising 43 units."This necessitated a redesign of the development and, together with further delays that were experienced, led to a further indirect cost implication. "In total, an amount of approximately R22m has been expended on this development to date."One of the reasons for continuing the downscaled project was to allow FNB the opportunity to recover at least some of its wasted costs and expenditure, by developing units at prices which were inevitably more than the original affordability levels," he said. The 43 housing units had been completed with two types of tenure offered - sectional title and full ownership.Van der Walt said prospective buyers had been identified and provisionally approved to purchase and take transfer of the units, but transfer could not take place at this stage. This could happen only after all the relevant statutory approvals had been obtained.The land on which the development was built was also still owned by the City of Cape Town, and needed to be transferred to FNB or to the bank's nominees. This process was also under way.
RDP housing projects - Where is the money?
RDP housing projects - Where is the money? : "Michael Sutcliffe"
Just three weeks after receiving R30-million from the eThekwini municipality, high-flying Durban couple S'bu and Shawn Mpisane have halted the completion of RDP housing projects in Umlazi, apparently because they have no money to continue the work.The R30m paid in December was part of a series of electronic payments amounting to about R219 million, which the company received from eThekwini last year.The last payment of R4 785 720 was made on December 14, two weeks before their A-list, bling party on New Year's Eve.
That's when the big-spending former metro officer and his politically connected wife dazzled friends at their luxurious La Lucia home.Top-end whiskies and champagne flowed, while they splurged on special thrones and showed off their new Rolls-Royce. Guests included national police commissioner Bheki Cele.
While Shawn Mpisane, daughter of the late ANC local councillor Dumazile Flora Mkhize, is the one who was granted the Umlazi housing contract, it is her husband, Wiseman Sibusiso (S'bu), who has been the focus of media attention. While working as a metro police constable, with a salary of less than R15 000 a month, Mpisane raised eyebrows by arriving at work in a Lamborghini and living in a R17 million mansion.This week, he made headlines of a different kind when The Mercury's news editor, Philani Makhanya, laid a complaint of intimidation against him. The alleged intimidation came after Mpisane became aware The Mercury was investigating his affairs.
On Monday, workers of Shawn Mpisane's Zikhulise Cleaning, Maintenance and Transport company (constructing homes?), as well as those employed by sub-contractors, in Umlazi, were told to go home because the company allegedly had no money to continue their work.An estimated 1 300 people, many from Umlazi, and their families have been affected, according to Ward 79 councillor Sthenjwa Nyawose.Mpisane had told him her company had received no money from the municipality since October. Despite repeated attempts to interview Shawn Mpisane, she failed to return calls to The Mercury as promised.As a result of the job and housing uncertainty, Nyawose described the situation in the township as "volatile but calm"."We are very angry, the councillors of Umlazi are fuming," he said. "As we speak, the project is not going on because the contractor has not been paid. The problem is the municipality is not coming up with the money."Contradicting this, however, documentary records in The Mercury's possession indicate that more than R50 million was paid by the municipality to Zikhulise in November and December.Municipal manager Michael Sutcliffe confirmed a total of "around R300 million" had been paid to Zikhulise over 18 months and said the project had been completed in mid-December.The project involved building low-cost cost RDP houses on 4 500 sites in Umlazi B10, KwaMgaga and Umlazi Infill.The Mercury has documentary proof that a total of R219 930 939 was electronically transferred from eThekwini to Zikhulise in 2009. In December alone, four payments totalling about R30 million were made. Nyawose said thousands of houses were still under construction or to be built in Umlazi, contradicting Sutcliffe's statement that all work had been completed.Sutcliffe explained that some funding was usually paid in advance. "Contractors submit claims based on work done; the city's professional team verify that and if such work has been done, payments are then made," he said.Like Nyawose, Sutcliffe confirmed that the development was initially a provincial project which the municipality was asked to take over. "In August, 2006, eThekwini municipality resolved to take over the project and become the developer and further agreed that the professional team and contractors... be kept for the duration of the project."But just months after construction, some of the houses were crumbling, The Mercury established during a field trip. The houses were not plastered or painted. Some had no toilets, taps, baths or showers. An eight-member family living in a leaking, three-roomed house said their biggest concern was how they would eat. Only two members of the family were employed, one by Zikhulise and the other by one of its sub-contractors. "Eish, school has started and we can't take the children to school because we have no money," said one woman. Another angry man said the houses were of a poor quality because workers were told to rush their work.
Wow - Michael , if you worked for me I would fire you! How do you not know what is going on in "your company (eThekwini) "? Would you wrongfully pay out R300 million if it was your money? Who are you going to blame? Maybe Tokyo will still fire you for wasting his money?
Just three weeks after receiving R30-million from the eThekwini municipality, high-flying Durban couple S'bu and Shawn Mpisane have halted the completion of RDP housing projects in Umlazi, apparently because they have no money to continue the work.The R30m paid in December was part of a series of electronic payments amounting to about R219 million, which the company received from eThekwini last year.The last payment of R4 785 720 was made on December 14, two weeks before their A-list, bling party on New Year's Eve.
That's when the big-spending former metro officer and his politically connected wife dazzled friends at their luxurious La Lucia home.Top-end whiskies and champagne flowed, while they splurged on special thrones and showed off their new Rolls-Royce. Guests included national police commissioner Bheki Cele.
While Shawn Mpisane, daughter of the late ANC local councillor Dumazile Flora Mkhize, is the one who was granted the Umlazi housing contract, it is her husband, Wiseman Sibusiso (S'bu), who has been the focus of media attention. While working as a metro police constable, with a salary of less than R15 000 a month, Mpisane raised eyebrows by arriving at work in a Lamborghini and living in a R17 million mansion.This week, he made headlines of a different kind when The Mercury's news editor, Philani Makhanya, laid a complaint of intimidation against him. The alleged intimidation came after Mpisane became aware The Mercury was investigating his affairs.
On Monday, workers of Shawn Mpisane's Zikhulise Cleaning, Maintenance and Transport company (constructing homes?), as well as those employed by sub-contractors, in Umlazi, were told to go home because the company allegedly had no money to continue their work.An estimated 1 300 people, many from Umlazi, and their families have been affected, according to Ward 79 councillor Sthenjwa Nyawose.Mpisane had told him her company had received no money from the municipality since October. Despite repeated attempts to interview Shawn Mpisane, she failed to return calls to The Mercury as promised.As a result of the job and housing uncertainty, Nyawose described the situation in the township as "volatile but calm"."We are very angry, the councillors of Umlazi are fuming," he said. "As we speak, the project is not going on because the contractor has not been paid. The problem is the municipality is not coming up with the money."Contradicting this, however, documentary records in The Mercury's possession indicate that more than R50 million was paid by the municipality to Zikhulise in November and December.Municipal manager Michael Sutcliffe confirmed a total of "around R300 million" had been paid to Zikhulise over 18 months and said the project had been completed in mid-December.The project involved building low-cost cost RDP houses on 4 500 sites in Umlazi B10, KwaMgaga and Umlazi Infill.The Mercury has documentary proof that a total of R219 930 939 was electronically transferred from eThekwini to Zikhulise in 2009. In December alone, four payments totalling about R30 million were made. Nyawose said thousands of houses were still under construction or to be built in Umlazi, contradicting Sutcliffe's statement that all work had been completed.Sutcliffe explained that some funding was usually paid in advance. "Contractors submit claims based on work done; the city's professional team verify that and if such work has been done, payments are then made," he said.Like Nyawose, Sutcliffe confirmed that the development was initially a provincial project which the municipality was asked to take over. "In August, 2006, eThekwini municipality resolved to take over the project and become the developer and further agreed that the professional team and contractors... be kept for the duration of the project."But just months after construction, some of the houses were crumbling, The Mercury established during a field trip. The houses were not plastered or painted. Some had no toilets, taps, baths or showers. An eight-member family living in a leaking, three-roomed house said their biggest concern was how they would eat. Only two members of the family were employed, one by Zikhulise and the other by one of its sub-contractors. "Eish, school has started and we can't take the children to school because we have no money," said one woman. Another angry man said the houses were of a poor quality because workers were told to rush their work.
Wow - Michael , if you worked for me I would fire you! How do you not know what is going on in "your company (eThekwini) "? Would you wrongfully pay out R300 million if it was your money? Who are you going to blame? Maybe Tokyo will still fire you for wasting his money?
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