From Beacon of Hope to R123 Million Disaster

The Chantelle social housing project in the Akasia area, launched with great expectations in June 2022, began as a beacon of hope but has since degenerated into a financial and administrative disaster.

This project, managed by the Housing Company Tshwane (HCT), was intended to provide a viable solution to the growing housing crisis and to build a community where residents would have access to safe, affordable accommodation.

An official report tabled to Council, however, reveals a complete collapse of project management, financial oversight and administrative competence within the Metro.

According to the report, the contractor responsible for building 600 units was paid more than R118 million before the contract was terminated on 15 May 2024. Yet only 82 shell structures were completed, and overall progress had ground to a halt at a mere 25%.

In addition, the Metro is now attempting, through litigation, to recover R4 668 545,20 from the contractor’s guarantee for defective work and unpaid subcontractors. This brings the total financial exposure to approximately R123 million.

To put this into perspective: with the same amount the Metro could have constructed nearly 450 RDP houses that would actually have made a difference.

The report further highlights serious administrative shortcomings that constitute a violation of the Municipal Finance Management Act (MFMA):

• A 12-month delay in issuing a critical certificate, which halted construction.
• Late or non-payment by the Metro, which forced the contractor to stop work.
• Poor oversight and no intervention despite clear signs of underperformance.
• No funding earmarked for the project in the 2025/26 financial year, which brought construction to a permanent standstill.

The Freedom Front Plus (VF Plus) insists that the current administration account for the R123 million in public funds that are now lost or at risk, as well as the violation of MFMA payment requirements.

The party also demands to know why contractor performance was not monitored, why approval delays paralysed the project and why there was no comprehensive budget.

The Chantelle project, which was meant to serve a community and bring hope, has become a symbol of the Metro’s betrayal of residents.

The Freedom Front Plus will keep pressing for full accountability, consequence management and a transparent recovery plan prioritising the community’s interests.

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