Construction mafias blamed for stalled housing projects

Human Settlements Minister Mmamoloko Kubayi says construction mafias were among the reasons more than 3 000 housing projects were stalled in the country.

Human Settlements Minister Mmamoloko Kubayi says construction mafias were among the reasons more than 3 000 housing projects were stalled in the country.

Published Sep 7, 2023

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Human Settlements Minister Mmamoloko Kubayi says construction mafias were among the reasons more than 3 000 housing projects were stalled in the country.

She disclosed this when responding to oral questions in the National Assembly on Wednesday, saying 3 445 housing projects have been blocked.

“In 2021, we took a decision as a sector to unblock projects. This was to be done in three financial years,” she said.

According to Kubayi, they had planned to target 192 housing projects in the 2022-23 financial year.

“When we monitored, out of the 192, we realised in 2022-23 103 were activated and the implementation is ongoing and the remaining is 89 projects that were carried over to 2023-24,” she said.

In the 2023-23 financial year, 619 housing projects were identified and 299 were remaining.

The minister blamed lack of bulk infrastructure and services for the stalling of some of the housing projects.

There was also illegal occupation of land, construction companies abandoning sites, community protests and construction mafias.

“We are committed to continue to unblock these projects and work is under way.”

Asked what her department was doing to ensure rights of beneficiaries were not trampled on as a result of construction mafias and those conspiring and cutting deals with mafias, Kubayi said her responsibility did not involve law enforcement.

“We have requested their support so that they can ensure those in construction are able to start and finish their projects,” she said.

The minister also said the department has requested law enforcement agencies to protect workers, especially women.

She said police have not recorded politicians involved in construction mafias except one in the Western Cape who was a former mayoral committee member for human settlements.

Former Mayco member Malusi Booi was fired from his post after his office was raided in March.

Kubayi stated that some builders left sites because they found projects unviable and others have found a way of dealing with the problem.

“What some have done is to increase operational costs and put security as part of project plans and operations,” she said.

Kubayi said the question of how to deal with non performing contractors was a difficult one, especially blacklisting them.

“We try to blacklist but all you can do is to terminate (the contract).

The process of blacklisting with the National Treasury becomes difficult.”

She recounted an incident where they instituted the blacklisting of a company in Limpopo but the National Treasury delayed effecting this, saying it needed a court order.

Cape Times