R371m spent on Thembisa housing project, but no unit completed

R82 million is needed to complete the housing units in the blocks assessed as being in moderate condition. Approximately R371 million has been spent on the Thembisa Extension 25 Mega Housing Project, yet no housing unit has been completed or handed over to beneficiaries, and no disciplinary, civil, or criminal action has been taken against officials or service providers linked to the stalled development. This is according to the minister of Human Settlements, Thembi Simelane, who said R371 million has been paid to contractors and service providers to date. MK MP Zelna Saira Abader asked the minister for an update on the project. The project was intended to deliver 3 510 housing units, but it has remained stalled since 2021. Both Gauteng’s and Ekurhuleni’s housing departments previously refused to take responsibility for the project’s failure; however, Simelane’s response draws on information from both departments. Money spent on Thembisa’s housing project Abader’s parliamentary question asked for the original approved budget and how much more will be spent to complete the project. The minister said the original approved budget for the project was R1.4 billion, excluding VAT. This is based on the report she received from the Gauteng department of Human Settlements. Simelane said an additional R82 million is needed to complete the housing units in the blocks assessed as being in moderate condition. Vandalism in Thembisa The minister said no housing units have been completed, certified as complete or transferred to beneficiaries. Approximately 380 housing units remain incomplete at various stages of construction and have been affected by vandalism. Abader asked for the total amount lost through incomplete construction. “The extent of losses has not been accurately quantified,” replied Simelane. “The development comprises RDP walk-up blocks rather than individual residential stands. Six blocks are reported to be in moderate condition, while five have deteriorated severely.” No one held accountable When it comes to holding officials or service providers accountable for the project, the minister said no action has been taken. “According to the City of Ekurhuleni, no disciplinary, civil or criminal action has been instituted against officials or service providers. The City attributed the incomplete construction and vandalism to funding shortages rather than misconduct or negligence. “Records relating to project management, payment authorisations and certification are available. However, the City of Ekurhuleni has indicated that the officials responsible have since left its employ.” Reason behind stalling Abader asked why the project was abandoned. “According to the provincial report, construction activities were halted by disruptions attributed to construction mafias operating under the guise of a business forum,” the minister said. “The City of Ekurhuleni further cited funding constraints and budget reductions as factors that prevented the completion of construction and the repair of infrastructure damaged by vandalism. These factors contributed to the prolonged stoppage and deterioration of the incomplete development.”