Despite an expenditure of roughly R371 million on the Thembisa Extension 25 Mega Housing Project, yet no housing unit has been finished or given to any beneficiaries.
Did You Know? The original approved budget for the Thembisa Extension 25 Mega Housing Project was R1.4 billion, excluding VAT, based on a report from the Gauteng department of Human Settlements.
R371 million paid as construction remains stalled
Minister of Human Settlements Thembi Simelane revealed the project status in a parliamentary response to MK MP Zelna Saira Abader. Simelane said that R371 million has been paid to contractors and service providers thus far.
The development was originally intended to deliver 3,510 housing units. However, construction has remained stalled since 2021.
Abader asked how much more money is needed to finish the work. Simelane said an additional R82 million is required to complete housing units in the blocks assessed as being in moderate condition.
Vandalism and Lack of Accountability
About 380 housing units remain incomplete at various stages of construction, and they have suffered from vandalism. Simelane said that the extent of financial losses has not been accurately quantified because the development consists of RDP walk-up blocks rather than individual residential stands.
Six blocks are reported to be in moderate condition, while five blocks have deteriorated severely. According to the City of Ekurhuleni, no disciplinary, civil, or criminal action has been instituted against any officials or service providers.
“According to the City of Ekurhuleni, no disciplinary, civil or criminal action has been instituted against officials or service providers,” said Simelane.
The City attributed incomplete construction and vandalism to funding shortages rather than misconduct or negligence. The City indicated that the officials responsible for project management, payment authorizations, and certification have since left its employ.
Disruptions and Funding Constraints
Previously, neither the Gauteng nor the Ekurhuleni housing departments were willing to accept accountability for the failure of the initiative. Simelane’s recent response draws on information gathered from both departments.
“According to the provincial report, construction activities were halted by disruptions attributed to construction mafias operating under the guise of a business forum,” Simelane said.
The City of Ekurhuleni also cited funding constraints and budget reductions as key factors preventing construction completion and repairs to infrastructure damaged by vandalism. These challenges contributed to the prolonged stoppage and deterioration of the site.
Questions about the Thembisa housing project budget and units
What was the original approved budget for the Thembisa Extension 25 Mega Housing Project?
The original approved budget was R1.4 billion, excluding VAT, based on a report from the Gauteng department of Human Settlements.
How many housing units were intended for the development?
The project was intended to deliver 3,510 housing units, but none have been completed or handed over to beneficiaries since the project stalled in 2021.
What factors caused the construction work to stop?
The City of Ekurhuleni pointed to budget cuts and financial limitations, while construction activities were similarly brought to a standstill by interference from construction mafias masquerading as a business forum.
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