DA reiterates call to blacklist delinquent NW Human Settlements contractors following damning HRC report

Issued by CJ Steyl – DA North West Spokesperson on Cooperative Governance, Human Settlements and Traditional Affairs
22 Nov 2024 in Press Statements

Note to Broadcasters: Please find linked soundbites in English and Afrikaans by CJ Steyl MPL

The DA reiterates our call to blacklist delinquent contractors from accessing government tenders in the North West.

This follows the release of a damning report by the South African Human Rights Commission that the North West Department of Human Settlements has failed to ensure the delivery of quality housing to beneficiaries as per Section 26 of the Constitution. See the report here in which the DA was a complainant.

In summary, the report confirms that the provincial Department of Human Settlements has flouted supply chain management regulations, project management principles and applied ineffective performance monitoring of housing projects.

Some contracted companies receive advance payments, under the guise of economic development, only to abandon project sites shortly after, while others have received substantial overpayments.

The report confirms the DA’s suspicion that government infrastructure projects have been abused to launder taxpayer money, leaving housing beneficiaries without adequate housing, and suffering extended delays in the registration and transfer of title deeds.

The report further indicates that more than R13 million was spent to demolish and rebuild poorly constructed houses, another R13 million was overpaid to contractors, and R5 million was paid to contractors for work that was never delivered.

While the HRC report follows investigations into the poor performance of the previous provincial government, the legacy issues persist throughout the province and is now the responsibility of the current provincial government to resolve the backlog.

In committee, and on several oversight inspections following the 2024 elections, the same issues identified in the HRC Report persist, despite a commitment by the department to address the backlog, cashflow problems continue to cause massive delays.

Last month, as part of the Provincial Oversight Week, we conducted oversight inspections in Tshing Extension 8 and 9 Housing Projects in the JB Marks Local Municipality, where 290 houses were to be constructed. We found that slow payments by the department will delay the handover of houses and miss the completion date set for the end of December 2024. The same problems persist in Tshunyane Village in Mahikeng, and in Rulaganyang in Maquassi Hills.

The DA has called on the department to initiate the process to ensure delinquent contractors are blacklisted and that any funds paid must be recovered.

Last week during an oral question session during a sitting of the North West Provincial Legislature, COGHSTA MEC Molapisi confirmed that the department has not yet initiated the process with Provincial Treasury to blacklist any company.

The DA will interrogate the HRC report in detail and ensure that all its recommendations are implemented. We will also continue to push for the completion of housing projects and the transfer of title deeds to beneficiaries.