Durban - Controversial Durban business tycoon Shauwn Mpisane is in the spotlight again over problems with a major low-cost housing project.
Mpisane, whose company has raked in hundreds of millions of rands in tenders for low-cost housing, has blamed the provincial Department of Human Settlements for her company’s financial woes, which have seen the halting of work on thousands of low-cost houses in the city and KwaDukuza Municipality.
This has left government housing beneficiaries wondering why Mpisane’s Zikhulise Cleaning Maintenance and Transport CC has abandoned the construction of their houses in Umlazi and KwaDukuza. The construction stopped when the company closed for the festive season on December 12, but did not resume when it was supposed to on January 12.
Mpisane confirmed to The Mercury that hundreds of workers had neither returned to work nor been paid since they had closed for the holidays. She hoped that the work would resume in April, in the next financial year.
She declined to disclose how much she was owed or how many houses were incomplete.
The Department of Human Settlements and the eThekwini Municipality denied that there was a problem with the provision of low-cost houses in the city. The KwaDukuza Municipality, meanwhile, said it was not dealing directly with the payment of housing service providers.
“Human Settlements is the one with (budget) problems, and Human Settlements is dealing with eThekwini. KwaDukuza also has problems because it is getting money directly from Ravi (Pillay, MEC for Human Settlements),” Mpisane said.
She said her company continued with construction in municipalities in the Eastern Cape, Gauteng and Limpopo.
“It is only KZN that has a problem.”
Mpisane said projects such as the Cornubia housing development, in the north of Durban, had also been stopped because of the budget shortage in the department.
Despite denials by eThekwini and Human Settlements that construction had halted, in Umlazi’s Q Section hundreds of houses were left without windows and doors when Mpisane’s company left in December. Walls and floors have not been plastered and painted. Beneficiaries and their family members are crammed in small shacks while waiting for the work to be completed.
Philani Mshengu, 28, said he and others were told last year that they would move into their houses before Christmas.
“I was left disappointed when they left in December and promised to resume construction in January. More disappointing is that this construction has not resumed, and we have never been given an explanation,” he said.
Sthembiso Msomi, 48, said construction of his house was yet to start. He lives in a small shack after he was forced to demolish his bigger one to make space for the construction of the house.
“My shack was demolished in December with a promise that they would start building my house on January 6, but nothing has happened,” he said.
Mpisane’s employees said theft of building material by employees was high in Zikhulise. They said some workers would steal ready-mixed cement carried by trucks, and sand, building blocks, window frames and other material to build their own houses.
Mpisane said she had been striving to clamp down on theft. One employee, who asked to remain anonymous, implicated senior employees in the company.
Human Settlements spokesman Mbulelo Baloyi said incorrectly completed claim forms were the reason for the delay of payment.
“With regard to claims submitted by the implementing agent for payment, some had incorrect information and had to be sent back.
“In terms of the agreement, the department has 30 days to effect payment from the date of resubmission of the invoice, hence all claims are well within the stipulated time frame for payment,” said Baloyi.
An eThekwini spokeswoman, Tozi Mthethwa, said the municipality was happy with the construction, and had paid on time for the completed work.
“All obligations in terms of the existing contracts have been met by both parties,” said Mthethwa.
The Mercury