By Anél Powell
Contractors have threatened to bring claims amounting to more than R100-million against the city for mismanagement of the N2 Gateway housing project, says Democratic Alliance councillor Neil Ross.
"And the R35-million overrun in building the top structures are costs that council will also have to pick up."
These revelations emerged during Thursday's heated debate in full council about a recommendation to slash the N2 Gateway's capital budget from R317-million to R86-million.
The city could still be liable for claims and overrun costs While the management of the N2 Gateway was transferred from the city to the province and Thubelisha Homes in February, the city is still responsible for the funding and monitoring of bulk infrastructure.
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Ross said that while this transfer was done shortly before the March 1 local government elections, the city could still be liable for claims and overrun costs of more than R35-million.
"We were given R80 000 per unit for the top structures, but they cost between R125 000 and R140 000. Who is responsible for this?" Tozama Bevu of the African National Congress (ANC) said the project was handed to the province "because they were the best to run it".
Housing Minister Lindiwe Sisulu said in parliament last week that 22 000 houses would be built within the next three years. Housing MEC Richard Dyantyi said earlier that construction of the next phases was already under way.
But Ross said Thubelisha Homes indicated at a recent presentation that the N2 Gateway project would take at least six years to complete.
National government wanted to change the facade of the N2 "It should have been done by December 2006, but only 10 percent has been completed," said Ross.
Ross said tender irregularities for the N2 Gateway project had cost the city more than R12-million. "Cyberia Technologies tendered for R5-million but were paid R12-million.
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