Hawks investigate Free State housing projects after costs nearly triple
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South Africa's Hawks are investigating three Free State housing developments whose budget grew from R450 million in 2014 to roughly R1.2 billion, with disciplinary cases against officials set to run into 2027-28.
The Directorate for Priority Crime Investigation, known as the Hawks, is investigating three Free State housing development projects after a programme initially budgeted at R450 million in 2014 expanded to approximately R1.2 billion over 12 years, with some completed units still standing empty.
The projects are the G-Hostel development in Thabong, Welkom, and the Dark and Silver City top-site and bottom-site developments in Bochabela, Bloemfontein. Parts of the developments remain incomplete, while some finished housing units cannot be occupied because basic infrastructure has not been provided.
Human Settlements Minister Thembi Simelane confirmed the investigation on October 29, 2026, in a written parliamentary reply to MK party MP Thulani Innocent Gamede, who asked for an account of the R1.2 billion programme. She said the matter remains under investigation by the Hawks in Bloemfontein, which is examining whether criminal conduct occurred in connection with material irregularities identified by the Auditor-General of South Africa.
Simelane said no final determination of criminal responsibility could be reported at this stage. On disciplinary action, she said the province has confirmed that processes relating to the identified irregularities are under way and are expected to conclude during the 2027-28 financial year, subject to witness availability, legal applications and the complexity of the matters.
According to DA spokesperson on human settlements in the Free State legislature David McKay, the G-Hostel project has consumed more than R608 million, nearly three times its original budget, but is only 67 percent complete. He said hundreds of completed units stand empty because sewerage and electricity infrastructure was not provided, and that the department has requested a further R401 million to finish the remaining units of a scheme originally intended to deliver 780 homes.
McKay said the Silver City project in Mangaung has consumed more than R632 million, with completion now dependent on a further R220 million in unfunded costs, and that the average cost per unit across the projects has risen above R1 million. The developments have seen repeated contractor changes, construction delays, vandalism and infrastructure problems since the programme was launched in 2014.