Cape Town - The Bitou Municipality has hired an investigative team to probe fraud and corruption in a housing emergency project where 25 homes are outstanding despite the contractor being paid.
The municipality had applied for emergency funding from the national government in 2018 to aid fire victims and was granted R3.9 million to construct 69 temporary housing units in the affected communities.
Construction company Nzuzo Yalo was contracted by the municipality to build the housing units for the fire victims in KwaNobuhle, Qolweni and Kurland Village in Plettenberg Bay.
The project was awarded at a construction cost of R3, 443,652.17, according to reports.
However only 44 structures have been constructed and 25 are still outstanding, the municipality said.
Additionally, three containers which stored the emergency housing material were found empty.
Bitou Municipality Municipal Manager Mbulelo Memani said the matter was under investigation.
“The team is investigating the emergency housing project by establishing the facts, the sequence of events.
“It is also determining whether prima facie evidence exists of instances of fraud, corruption, mal-administration and draft findings and recommendations as part of a detailed report.
“The investigation team is almost done with their report,” Memani said.
Nzuzo Yalo director Mthobeli Jaantjies said he was not aware of an investigation.
“I have not been contacted by the municipality.
“I am still waiting for the municipality to instruct me to continue with the building of the houses,” he said.
DA provincial spokesperson for Human Settlements, Matlhodi Maseko said it was “worrisome” that the construction company was paid, yet there were still structures that were not done.
“When we engaged with the municipality we found that so far the total amount of the project cost amounted to R10 982 869.
“This means that more than R10 million has been spent on a project that should have been R3.9 million,” she said.
GOOD party MPL and member of the Standing Committee on Human Settlements Shaun August said the Bitou Municipality has kept residents in the dark about what transpired.
“The Bitou Municipality landed a low to ratepayers in the municipality when they procured, contracted, and paid for a service provider to store emergency housing material in three containers acting as stockrooms.
“When investigated, it so happened that the containers were found empty, and the service provider was remunerated for services rendered.
“The reality about this incident is that it gives us an idea of how the government functions in this country; careless, irresponsible, and wasteful. Wasteful expenditure toppled the Auditor General findings in the Western Cape province where 27 municipalities irregularly wasted R1.23bn of public funds, because they feel that they can, without accountability, action or repercussions,“ said August.
Cape Times