Probe into questionable Limpopo temporary housing contract clears officials of any wrongdoing

Human Settlements Minister Mmamoloko Kubayi says investigations by the Hawks and Public Protector Busisiwe Mkhwebane found no department officials were involved in the awarding of the controversial procurement of temporary houses in Talana outside Tzaneen in Limpopo.

EFF MP Mathibe Rebecca Mohlala wrote to Kubayi, asking whether any official was involved in the awarding of the tender for 40 “temporary tin shelters” a year ago. In her written reply, Kubayi said the Limpopo Department of Human Settlements appointed the Housing Development Agency as the implementing agent for the construction work of the transitional residential units (TRUs) around May and June 2021.

This was after an assessment at Talana hostel, Tzaneen, where the settlement was found to be highly congested and posed a risk of spreading Covid-19 infections. Kubayi said the agency had appointed the contractor, Aventino Group CC, to construct the transitional residential units at a total cost of R15 750 000 for supply and installation of basic engineering services for 142 units.

Kubayi said the Housing Development Agency had paid a total of R2 577 640 00 after the completion of 40 out of 142 units. “The money was paid in two tranches of R1 095 497 on 22 July and R1 482 143 on 24 July as reflected in the bank records of Aventino. “The cost per unit, according to the appointment letter, amounted to R64 441 00.” She explained that the contractor was paid by the Housing Development Agency.

“It must be noted that the Department of Co-operative Governance, Human Settlements and Traditional Affairs had not transferred any funds to Agency for this contract.” Kubayi said after the media uproar and public outcry following the official handover of the transitional residential units by Limpopo Premier Stanley Mathabatha, her department requested the National Home Builders Registration Council (NHBRC) conduct an investigation into the transitional residential units.

She said the investigation found major structural and non-structural defects in the TRUs. “The TRUs are not safe and pose a public health and safety hazard to inhabitants and other persons in their vicinity, and the workmanship is generally poor and doesn’t meet the level of accuracy required in building construction.”

Kubayi said, based on the NHBRC findings, the Housing Development Agency appointed a law firm, ENS, to assist with the internal investigations into allegations against its employees. “Three officials were placed on precautionary leave and subject to disciplinary process. One of the officials has since resigned from the organisation, and the other two were issued with final written warnings as part of consequence management,” she said.

The minister also said the Directorate for Priority Crime Investigation conducted an investigation into the tender. “To date, the director of Aventino as well as the Housing Development Agency (HDA) manager who was involved in the awarding of the tender were arrested.

“Based on the investigation conducted by the hawks and the Public Protector office, it is confirmed that there were no officials from the Department who were involved in the awarding of a tender for 142 temporary residential units,” Kubayi said.