The Special Investigating Unit has found shoddy work in the construction of houses in Limpopo and the Eastern Cape where companies pocketed millions of rand, but very few houses were built.
THE SPECIAL Investigating Unit has found shoddy work in the construction of temporary shelters and houses in Limpopo and the Eastern Cape where companies pocketed millions of rand, but very few houses were built.
In the Talana project in Limpopo, a company was appointed to build 192 temporary shelters for R15 million.
Head of investigations in the SIU, Leonard Lekgetho said when the unit visited the site they found that only 40 temporary shelters had been built instead of 192.
A total amount of R2.5 million was paid to the company. Lekgetho said the matter was now before the Special Tribunal and they were waiting for the judgment.
The SIU was briefing the portfolio committee on human settlements in the National Assembly on Wednesday.
Lekgetho said that in the Eastern Cape a company was appointed to build 1,174 houses in Duncan Village in East London.
The value of this contract was R87 million, he said.
A few months later the scope of the tender was extended and this put an additional cost of R86 million.
This brought the total cost of the contract to R173 million.
Lekgetho said only half of the houses have been built.
“To date the target of occupying 1,174 TRAs (temporary residential accommodation) in de-densifying Duncan Village in mitigating the spread of the Covid-19 pandemic, as initially planned for some two years ago, has not been met. Approximately only half of the TRA’s have been built.
“Furthermore, the specifications changed dramatically to include building of roads and installation of electricity, water services, sewage and stormwater drains for each unit. Initially, each unit did not have its own electrical, water service and sewage and that there were only communal services that served the entire community. The SIU’s investigation has revealed that there is evidence that points towards HDA (the Housing Development Agency) contravening section 217 (1) of the Constitution and paragraph 3.6 of National Treasury Instruction No 5 of 2020/2021 dated April 28, 2020 in that HDA extended and/ or varied the specifications and for the construction of TRU’s beyond the threshold of 30% or R30 million,” said Lekgetho.
He said four of the officials have resigned and two remaining officials will face disciplinary action.
“The disciplinary referrals are to be delivered to the HDA against the remaining two officials on or before July 7, 2023,” said Lekgetho.
