Tshwane to probe missing R18 million at Olievenhoutbosch housing project

The City of Tshwane has undertaken to probe allegations that at least R18 million went missing from a housing project for the construction of top structures in Olievenhoutbosch Extension 60.

As a result of the alleged disappearance of the millions, the project has been dogged by several delays for its completion. Almost two weeks ago, the community protested over the incomplete project outside Tshwane House, also complaining about the lack of pedestrian bridges, access to clinics and provision of water.

The project came under the spotlight during last week’s council sitting when Human Settlements MMC Abel Tau requested an amendment of the contract of GS Fencing and Construction for the construction of 447 top structures in Olievenhoutbosch Ext 60 in terms of the Municipal Finance Management Act.

Reacting to the request, EFF councillor Goodwin Ratikwane proposed the report be referred to a Section 79 committee and an in-loco inspection be conducted on-site to ascertain whether the contractor’s work justified payments by the City. “If it were to be found that the work is not satisfactory, an investigation into possible shortcomings will be done.”

Ratikwane said the project had been ongoing for far too long. “We have a situation where money has been lost and we need to investigate. R18m is a lot of money. If we don’t investigate this we might end up with a big issue,” he said. ANC chief whip Aaron Maluleka said the missing R18m was paid to the first contractor who then disappeared.

He warned against the application of Section 116 for the City to get money from somewhere to cover financial shortfalls, saying such practice could be abused by people to sort out “self-created crises”. He said the recent community protest at Tshwane House was evidence that there was a crisis in the project. “We need to follow on the R18m. It can’t fall through the cracks.”

Tau said: “One of the safeguards that we need to make sure of is that we do not find ourselves in a space where the additional delay leads us to more money being spent.” He said the City should make sure that in 12 months it completes the 758 properties and action against those implicated in wrongdoing could run concurrently. The delays in the project was a classic case of what Covid-19 had done, he said..

Ward 106 councillor Kenneth Masha said: “The report speaks about a delay of 12 months. But to the community of Olievenhoutbosch it is seven years that they have been waiting for the top structures..” Council agreed that Tau’s report be referred to the Section 79 committee for further scrutiny, and that the Municipal Public Accounts Committee must investigate the payments.