Media Statement - 28 January 2013

All contractors who have been appointed to deliver low-cost houses by the Mpumalanga Department of Human Settlements have been challenged to deliver on their commitments before 15th March 2013. This resolution emerged at a meeting called by Premier DD Mabuza and the contractors last week Friday. The contractors were urged to complete their project allocated to them within the specified timeframe or terminate their contracts immediately. All those who did not attend the meeting are called upon to visit the department to make the necessary arrangements regarding renewed commitment from their side before the 31st January 2013.

The meeting heard, amongst other that contractors, who will not be able to meet the deadline will have their contracts terminated and they will not be able to do business with the department in the next financial years, those who are confident that they will be able to meet the deadline will sign contracts binding them that they would have finished their projects by the end on 15th March 2013, failure to abide by the contract their contracts will be automatically terminated and they will be blacklisted from doing business with the department and contractors who have major problems with their projects or any kind of payments were requested to hand them over to relevant officials.

All challenges ranging from delays in the payment of contractors, supply of beneficiaries to contractors, taking contractors to sites, and giving them their contracts have to be resolved by 29thJanuary 2013. The department has thus far delivered 152 of the planned 9960 housing units for the 2012/13 financial year. All infrastructure projects including that of the department will be visited by MECs, HODs and all officials attached to the projects from the 27th - 30th January 2013.

The amended contracts to be signed by the contractors contain the number of units to be completed as well as the number of units to be surrendered before 15thMarch 2013. "Mpumalanga has a huge backlog of houses, people do not have houses and it’s my responsibility to provide them with houses, so I won’t allow the Treasury to take back the money budgeted for houses because of you” said Premier DD Mabuza. Contractors that were not in the meeting are still requested to come forward and sign the addendum before the 31st of January 2013. MEC Siphosezwe Masango, Acting Head of Department, Mr Sarel Mtsweni and Director General, Ms Nonhlanhla Mkhize attended the meeting.

Press Release Date: 
Monday, January 28, 2013