The Democratic Alliance (DA) calls on the Northern Cape Provincial Treasury and Department of Cooperative Governance, Human Settlements & Traditional Affairs (COGHSTA) to prioritise payments relating to provincial housing projects.
Budget cuts are a fiscal reality, but not the sole cause of outstanding monies. The fact that COGHSTA racked up debt of R500 million to one implementing agent and now requires additional resources from the provincial purse raises concerns about the department’s ability to plan, fund, and manage its projects. It also does not bode well for the smooth delivery of the R1 billion housing project.
I met with the Member of the Executive Council (MEC) for Cooperative Governance, Bentley Vass, to raise concerns from contractors who complain about outstanding payments and unfair practices from COGHSTA. I note the MEC’s admission that COGHSTA owes R500 million to the Gap Infrastructure Corporation (GIC), which acts as implementing agent for numerous housing projects and which cannot pay contractors until COGHSTA settles its debts.
One example is payment owed for a housing project in the !Kheis Local Municipality. Final completion certificates had been issued, but contractors are still waiting on payments that were due in November 2024 already.
It seems that this department, which often blames a lack of capacity on the side of local contractors, issued flawed geotechnical reports which require additional equipment and expertise paid for from the contractors’ own pockets. Contractors struggle to be reimbursed for these additional costs, let alone being paid for the scope of work stipulated in their contracts.
The DA raised our concerns about the R1 billion housing project in the Northern Cape Provincial Legislature and will continue to seek accountability. The people of the province deserve more than promises.