The Ministry of Human Settlements has noted with disdain the media reports suggesting that the Department of Human Settlements, through the Free State Provincial Department of Human Settlements, has constructed housing units costing “as much as R3.6 million each.” These claims are devoid of truth, baseless and factually incorrect, there is no one unit that would cost this much.

The reports emanate from a Parliamentary question directed to the Minister of Human Settlements, Thembi Simelane, concerning blocked housing projects in Free State. These include Dark and Silver City top-site and bottom-site in Bloemfontein and G-Hostel in Welkom.
The Ministry categorically rejects the suggestion individual housing units were constructed at a cost of R3.6 million each. There are currently no verified facts or evidence before the Department substantiate claims that any of the housing units in question cost more than R3 million.

The Ministry has, on several occasions, openly acknowledged challenges confronting housing delivery, particularly those arising from stalled projects. These challenges have deprived qualifying beneficiaries of their constitutional right to adequate housing and have contributed to the delays in the delivery of much-needed homes. 

We have further acknowledged that prolonged delays in the implementation of these projects have resulted in escalations, placing an additional financial burden on the already limited resources. In this regard, the matter has been referred to the law enforcement agencies and can confirm that the projects in question are being investigated by the Directorate for Priority Crime Investigation (DPCI), commonly known as Hawks.

The Ministry wishes to emphasize that it takes allegations of irregular expenditure, project delays and mismanagement of public funds extremely seriously. However, it is important that media reports and public commentary are informed by verified facts and the distinction is made between the overall cost associated with stalled projects and the actual cost of individual housing units. 

The Ministry remains resolute in ensuring accountability for the challenges affecting housing delivery. We will leave no stone unturned in pursuing those responsible for the regrettable delays and associated escalations. Any public or private sector officials, contractors or other parties found to have contributed to these failures will be held accountable and, where evidence warrants, will face the full might of the law.

The Ministry remains committed to accelerating housing delivery, protecting public resources and ensuring that qualifying beneficiaries receive their homes.

Enquiries: Tsekiso Machike, Spokesperson to the Minister on 077 410 5050 Tsekiso.Machike@dhs.gov.za

Issued by the Ministry of Human Settlements, Govan Mbeki House 240, Justice Mahomed Street, Sunnyside, Pretoria