Human Settlements rejects R3.6m unit claims as Hawks probe Free State projects
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The Ministry of Human Settlements has dismissed reports that units in blocked Free State projects cost R3.6 million each, saying no verified evidence exists, and confirmed the Hawks are investigating the Dark and Silver City and G-Hostel schemes.
The Ministry of Human Settlements has rejected media reports suggesting that the Department of Human Settlements, through the Free State provincial department, constructed housing units costing as much as R3.6 million each, describing the claims as baseless and factually incorrect.
The reports stemmed from a recent parliamentary question to Human Settlements Minister Thembi Simelane regarding blocked housing projects in the Free State, including Dark and Silver City (top site and bottom site) in Bloemfontein and G-Hostel in Welkom.
"There are currently no verified facts or evidence before the department to substantiate claims that any of the housing units in question cost more than R3 million," the department said.
The ministry acknowledged the challenges facing housing delivery, particularly stalled projects that have deprived qualifying beneficiaries of adequate housing, and said prolonged delays have caused cost escalations that place additional pressure on limited public resources.
It confirmed the matter has been referred to law enforcement and that the projects in question are being investigated by the Directorate for Priority Crime Investigation (DPCI), commonly known as the Hawks. The ministry said allegations of irregular expenditure, project delays and mismanagement of public funds are treated extremely seriously.
It urged the media and public to distinguish between the overall costs associated with stalled projects and the actual construction costs of individual units, adding that officials, contractors or other parties found to have contributed to the failures will face the full might of the law where evidence warrants.