News24

R58bn needed to fix badly built houses

2011-02-10 20:15

Cape Town - It will cost about R58bn for the human settlements department to fix poorly built houses, the Democratic Alliance revealed on Thursday.

This figure was revealed by human settlements director general Thabane Zulu during a human settlements portfolio committee on Wednesday, DA spokesperson Butch Steyn said in a statement.

"Of greater concern was the further admission that the department has not yet found a way to blacklist contractors who built these sub-standard houses, and that many of these unfit contractors may still have contracts with the national government to build more sub-standard housing," he said.

These contractors were sabotaging the lives and human dignity of millions of South Africans with utter disregard for the consequences.

"This is unacceptable. Not only is the state losing approximately R58bn, but the national government will continue to waste large sums of money on this for the foreseeable future," said Steyn.

‘Urgent action needed’

Furthermore, the people these houses were intended for might well find themselves living in houses that were not up to standard.

This could not be allowed to continue, Steyn said.

The DA wanted urgent action to be taken to implement an effective system of monitoring and oversight of building contractors.

This would ensure that contractors who delivered sub-standard housing were not only held accountable for their poor service delivery, but also banned from engaging in future contracts.

It was Housing Minister Tokyo Sexwale's responsibility to outline such a plan to ensure that housing delivery for poor South Africans was not compromised any further.

Sexwale should appear urgently before the committee to explain why this situation had remained unaddressed for so long and outline a plan for effective monitoring and oversight to deal with this issue.

"What makes the R58bn revelation even more astonishing is that only six weeks ago, Minister Sexwale announced that he had set aside R1.3bn to fix sub-standard housing this year," Steyn said.

40 years to fix poorly built houses

Accepting this figure, it would take the national government 40 years just to fix badly built houses.

The annual budget for the department was only R16.3bn a year so if the department did nothing but fix sub-standard housing, it would still take three and a half years, with no other service delivery taking place.

In the meantime, poor quality houses continued to be built, which meant there was no foreseeable end to this expense.

Parliament was still waiting for the full report and result of the audit which would provide details of the rectification programme and explain how the figure of R58bn was reached.

Zulu did acknowledge in the portfolio committee meeting that this was a major problem and a way had to be found to blacklist contractors.

"It seems a little late to point this out after a R58bn bill has been presented to the public. There is no time to waste on empty promises and endless discussions," Steyn said.
 

Comments
  • JohannV - 2011-02-10 20:26

    Ah! RDP + BEE + AA + tender fraud = R58 billion loss. Viva African National Corruption!!!

      Mundu - 2011-02-10 22:29

      Yes but what really sticks in my craw is that it is our money that this useless ANC goverment is pissing into the wind. No respect for a man's hard earned money. I say stop paying taxes until they get their act together.

  • Agent - 2011-02-10 20:31

    By the way where is the NHBRC to do the repairs as we pay small fortunes into their account for every house built and it is compulsory, does the same not go for affordable housing or are the funds just used to create jobs. Surely they need to stand up and deliver, gee I would love to have a true answer. Then again none of us get any answers from the Govt if it does not suite them.

      Podgette - 2011-02-10 20:39

      I don't think the NHBRC pay for the repairs, the just make sure the builder does the repairs. In the case where the builder has done a duck, I don't know what happens. Yeah, those fees are outrageous considering the number of times they come to do inspections, etc. Would be interesting to see what the ratio is of clients paying the fees against monies they pay out to facilitate repairs.

      jaycee - 2011-02-11 09:34

      It's cheaper to take out insurance during construction than to pay the NHBRC. They will admit they're simply robbing Paul to pay Peter. The NHBRC sits on mountains of money - what do they do with it?

      PB - 2011-02-11 09:46

      NHBRC = Jobcreation. It never was supposed to achieve anything other than to create fancy job titles and to add to building costs. I am yet to hear of anyone having any luck with the NHBRC sorting out any problem. I also don't know of anyone who are 100% sure of what the NHBRC are supposed to be doing, other than rake in the moolah.

  • Bheki - 2011-02-10 20:34

    Why are the people that authorised the payment are not arrested for fraud?

      Hans-Erik Iken - 2011-02-10 20:56

      Good question and I agree. How about recovering the money from the people that didn't deliver the service/building quality they signed of on with the contract? Reposess all their assets or as much as is possible to reclaim the losses. Afterall, it is a clear case of breach of contract.

      JoggieRSA@24.com - 2011-02-10 21:10

      Because Bheki... They sit in government... Voted in by the masses... Wonder if South Africa will ever wake up and see the true agenda of the ANC?

      onetickie - 2011-06-10 20:52

      Cos they've got buddies in high places.

  • Podgette - 2011-02-10 20:36

    Claim it back from the crooked builder ~ a certain Shaun (?) springs to mind! Wonder what she even knew about building to warrant getting the contract? Oh sorry it was WHO she knew. No prizes for guessing who will foot the bill for the repairs

  • Proffie - 2011-02-10 20:45

    Why the eff were the houses built badly in the 1st place? Where were the building inspectors? The quality contollers? I cant even build a garage without a plethora of paperwork. Jesus wept!!

      Mundu - 2011-02-10 22:32

      The BEE's were paid off to look the other way. But even if they didn't look the other way they wouldn't know what to look for anyway.

      onetickie - 2011-06-10 20:56

      The building inspectors were no doubt having lunch with their buddies. All a bunch of crooks, stealing from their own. And then they talk about their ancestors this/that - what a lot of baloney. If ancestors had powers all these thieving buggers would be deeper than 6ft. under already.

  • Des - 2011-02-10 20:47

    The "quality" of these houses is such that it will be better and more economical to bulldoze them and build new. You can't repair structural defects to the extent it manifests on these "houses".

  • jiamalunga - 2011-02-10 20:48

    No more control! That is what the ANC will get you. It is clear that the Cadre's are not builders! Whahahahahaha!

      Mundu - 2011-02-10 22:33

      Yeah, I'm just glad I don't have to live in a house built by them.

  • Johndavid - 2011-02-10 20:53

    Result of deployment of ANC cadres. Tip of the iceberg!

  • UB40 - 2011-02-10 20:58

    Surely the contractors who built the shoddy houses should foot the bill........NOT THE TAX PAYER!!!!!! I have had it with paying taxes and this is what we get......bullsh_t!!!

  • Julius - 2011-02-10 21:03

    AA & BEEE Builders ?

  • JoggieRSA@24.com - 2011-02-10 21:08

    And you guys still wanna vote ANC? WAKE UP SOUTH AFRICA!!!!

  • braveinternetguy - 2011-02-10 21:15

    For me and verily many others like me, this is absolutely fantastic news...it rightfully puts us in a position to wag a finger and say "told you so", and go "tsk tsk". Our precarious and clumsy government, rife with racist, criminal buffoons, is soon to be caught with its pants down and its hand in the cookie jar. Black and white may yet one day unite in a rising up against corruption. Stop the ANC before it sucks us dry and sell our remains to the Chinese.

  • UB40 - 2011-02-10 21:16

    Just a thought....How much was spent to build this rubbish in the first place...R58bn sounds abit much, sounds like Africa's total growth for the past ten years?? Sounds like somone wants to pocket some change here...big change!!

      Roger 01 - 2011-02-10 21:24

      Prexactly !

      wattalotokak - 2011-02-11 07:24

      Let's do a bit of maths: R20k to demolish + R50k for building a new house = R75k. R58 Billion / R75k = 773,333 houses...! Sounds extremely close to the 1mil houses promised by Mandela..! Are you telling us that MOST of the 1mil houses have been FUCKED BY THE BUILDERS??? Something does NOT add up here...!

  • golflovinggran - 2011-02-10 21:25

    Are we aurprised??? No! This is what happens when BEE companies are awarded contracts. Just because you can build a mud hut with a grass roof, does not make you a Building Contractor. There is also so much Tender corruption. I say the Minister responsible for awarding these Tenders should be held accountable as I am sure their pocket was well lined and I wouldn't be surprised if they are a Director of the BEE company to whom the Tender was awarded. Once again the promises made by the ANC in the 90's has not come about. I guarantee the so called "previously disadvantaged" who are now members of Parliment as well as council members don't live in sub standard houses.

      Mnumzane - 2011-02-11 07:08

      For your information Politician does not sit in Tender Committees

      Snoopy88 - 2011-02-11 09:28

      what's the difference? These people, no matter who they are, should be held accountable for the money they've spent and the results they got. I work in project management and I get given a budget and a list of what I must achieve with it and by when. I hire subcontracors and I am on their backs every step of the way because I am the one who is ultimately responsible when things go wrong. I also don't allow anyone to subcontract further because that's a recipe for disaster. And I never pay anyone in full till I've checked that its done right. How hard is that? Its the easiest job in the world but when things start going wrong you have to be prepared to roll your sleeves up.. you can't just say, 'its not my job' because it is!

      PB - 2011-02-11 10:14

      Mnumzane - and you know this how? How many times were politicians exposed as having fingers in all kinds of pies that they were not supposed to? All that happens is "I'm Sorrrrry" and all is forgiven.

  • Circuswatch - 2011-02-10 21:31

    I heard it cost approx, R10 000 to build one RDP house. Is this true? How many houses can be built for 56Bil? I get 5 million 6 hundred thousand houses. Who is talking kak here? I doubt whether they've built 1 million houses to date. Is someone going for the big score? Is the ANC's Grade 4 maths letting them down? Maybe they should have a HUGE gathering so that they've got millions of fingers to count.

      Killroy2011 - 2011-02-10 22:28

      move the decimal point. perhaps a very small house for R100,000

      BigD - 2011-02-11 06:41

      I heard it was R50,000 to build one house. That means 1,160,000 million houses. Many contractors have been given marching orders allready. You cant collect money back from them as it is spent on lavish life style allready.

      Snoopy88 - 2011-02-11 09:03

      More than 20 years ago it was R20 000. I know because that's what my Dad was building them at for the provincial government at the time. So I doubt its that little now. But they are probably still trying to build them for that amount... sigh!

      onetickie - 2011-06-10 21:04

      If contractors have been fired, chucked off sites all and good. But not attempting to get money back? Not acceptable. If you owed, one has their house, car, bed, chair, kettle, toaster - everything attached. And these goods are sold off with funds going towards the debts incurred. So why are they being allowed to walk, probably living in well-built houses by proper contractors, driving 4x4s, pot-bellied, slurping back the booze & stuffing expensive food down their mouths. They should be stripped of everything, anything that can be sold, even if only for a few Rand.

  • hjmerwe - 2011-02-10 21:39

    R9 bn for job creation. R58 bn to fix badly built houses !!! Ha ha haaaa ! Vote ANC !!!

      braveinternetguy - 2011-02-10 23:57

      Well, they'll need a lot of workers to fix up R58,000,000,000.00 worth of rubbish. Clevah, eh?

  • Mike_L - 2011-02-10 22:13

    "Furthermore, the people these houses were intended for might well find themselves living in houses that were not up to standard." Sounds like heaven on earth. That, after all, is what they voted for.

  • Mr.Glum - 2011-02-10 22:20

    And the affirmative’s who built these dilapidated houses are still enjoying their fat cheques. Bring them to book to fix the mess they made, why must the taxpayer sort it out?

      Mundu - 2011-02-10 22:34

      Yeah, where is the outrage?

      Podgette - 2011-02-11 08:53

      You probably find the unskilled 'affirmatives' have not been paid either, the middle man who secured the contract is bearing the fruits of his govt contacts. Disgusting how these guys are prepared to naai their own! You can't even blame apartheid, racism ~ just pure and simple GREED and not caring for their fellow man.

  • AJ - 2011-02-11 05:06

    The ANC had the opportunity to do it right the first time. The tenders were inflated, the work carried out by incompetents, and that process is simply set to repeat. That money which should NOT have to be spent again will come out of the middle class, any way they can get it (tolls, whatever). They treat the middle class like an ATM, that wont last much longer. Then the reality sets in...

      Snoopy88 - 2011-02-11 09:13

      Yeah I'm out of here... Its kind of funny that with all the reasons I could have chosen to leave SA it would be that I'm just finally gatvol of being treated like an ATM! I spend thousands on education and health care every month... In Oz I'll get that for free as part of my taxes. I can't think of one thing that I get directly here for the fortune I pay in taxes? Free housing? No. Education? No. Healthcare? No. Safety and security? No. Working streetlights, roads without potholes? OK those work fine but that's because I live in Cape Town and pay for it anyway with ridiculously high rates and taxes!

  • asiseeit - 2011-02-11 05:49

    and 2cents.

  • Maddi - 2011-02-11 06:38

    In essence, the poor working sod who religiously pays his taxes will end up paying TWICE for these houses??

  • Judge Dredd - 2011-02-11 06:55

    There you have the proof. Nepotism in awarding tenders to black contractors and family connections have now reaped its rotten fruit. This is the result of typical the African way of thinking and doing.

      Mnumzane - 2011-02-11 07:15

      Even white contractors Judge Dredd do perform badly. I know one contractor in North West. It was a white Afrikaner guy but his work was so bad. The last time I checked he was struggliing to finish the project. So this problem involves all of us.

      Snoopy88 - 2011-02-11 09:15

      @ Mnumzane - how did this Afrikaner guy get a government tender??

      Mnumzane - 2011-02-11 10:04

      @Snoopy88 Government tenders are open to everyone and this guy always get govt tenders and I am sure many do. And there are those who have Blacks fronting for them.

  • R.Suppards - 2011-02-11 06:57

    Anyone who lives in a sub standard house and voted for the ANC should have to fix the house at his own expense. This would bring home to him the cost of voting for the African National Corruption

  • Thandi - 2011-02-11 08:04

    I would say the focus here should be on the totally inept and no doubt totally corrupt officials who are administering this fiasco, and who are no doubt rubbing their hands in glee at the prospect of getting their hands on yet another big budget to bolster their self enrichment programme. Viva Anarchy Nepotism Corruption (ANC)

      Snoopy88 - 2011-02-11 09:17

      You just said it all... I wish they would publish the names of these criminals so we the public could go and have a word with them...

  • Chris - 2011-02-11 08:27

    If the ANC gov can't even contract and manage to have RDP houses build (you know that is those houses with the BIG bricks - like building with lego) and looses BILLIONS & BILLIONS on house projects - imagine how quickly the 2.5 TRILLION is going to be wasted! building a house is one thing, running a platinum mine is a whole different ball game...I think 1st world countries can't wait as they know they can wave a few billion $$$ and have a cut of the TRILLION $$$ pie.

  • Chris - 2011-02-11 08:39

    FIFTY EIGHT THOUSAND MILLION RAND. that is a lot of moneee...

  • LISLECA@24.com - 2011-02-11 08:40

    why must more of our tax payers money be spent to fix "badly built houses". The government must STOP giving tenders to their family members who walk away stinking rich and then come back for more when they have to come and repair their shoddy workmanship. When will we ever have a white government again - at least then we never had this kind of blatant corruption, or certainly never heard about it!!!!

  • YasButIDunno - 2011-02-11 08:42

    The ANCYL should be sent to sort out the crap, they can use some of the R100,000,000.42 that they didn't spend on the youth festival. I think it's a scream that it takes the DA to expose this, what are the recipients of the houses doing about it?

      Snoopy88 - 2011-02-11 09:20

      well they obviously feel they shouldn't complain. They should be grateful for what they're getting! They didn't pay for it. Crappy house is better than no house eh? Its only when you pay a third of your hard-earned salary over to the bank every month that you realise the value of your home. And most of that is just in interest!

  • Snoopy88 - 2011-02-11 08:59

    I don't get it. Why can't they take these useless 'contractors' to court and make them fix/replace their dodgy houses at their OWN expense? And arrest those in government who gave them the jobs without ensuring that it was done properly or that they were qualified to build. Why do they have to spend taxpayers money again? Accountability! 40 years and 58 bn? Rather give the owners some money to fix the houses themselves and thus generate legitimate building businesses. And they must adhere to the same building standards that the rest of us have to. But that won't work either.. People will just take the money and run. Easy come easy go... Will the last person to leave the country please turn off the lights!

      saliem - 2011-02-11 09:56

      @Snoopy88 - won't be any need to turn the lights off... Eskom will have done the job :P

  • Currie_Mafia - 2011-02-11 09:10

    Carry on awarding tenders to anyone with a hard hat & a trowel..well, as long as they are BEE compliant. This pathetic GOvt is being milked, taken to the cleaners but they're too dumb-ass stupid to know it or too arrogant to admit it...

  • JuluisMalema - 2011-02-11 10:02

    Yes because e-e-e-e-e-e infact especially so then but now we build the houses very bad so we can take some of the money provided to build these RDP houses, now it is to bad the houses is falling appart, so then but now R58billion is need to fix the f*ckups we made previously, but we will only use like a R1million hopefully less so we kan take more of this money also for our selfes. Yes that is it you heard right we take the money to buy nice cars, houses, hold party's eat sushi of naked body, buy businesses and mines. Goverment again think we are a bunch stupid *ssholes

  • Wes - 2011-02-11 10:25

    They just need more money to line there pockets again and that's how its going to continue so they are going to repair the badly repaired houses which were badly built and so on and so fourth

  • Wes - 2011-02-11 10:27

    They just need more money to line there pockets again and that's how its going to continue so they are going to repair the badly repaired houses which were badly built and so on and so fourth

  • onlyapeasant - 2011-03-04 19:51

    perhaps julius could do the woodwork rebuilding to save costs......

  • moladisa - 2011-03-06 12:27

    Proof that business is not politics - stick to your knitting and stop trying to make the lion scared of the buck - the lion will be KING

  • anti crime - 2011-03-17 09:36

    hahaha,julle bedonner julle eie mense...lol en jou mense love dit,hulle sal weer ANCee no results vote..

  • Samuel.Setloboko - 2011-10-12 19:56

    Does this amount sound right anyway people? i mean you need literally R58 billion to REPAIR houses for one province, how much did you need for building them? How much are you gonna need to build for the whole country? Hell no this cash is being inflated so that our fellow politicians and contractors continue to loot our cash, and make themselves rich. SOUTH AFRICA WAKE UP AND SMELL THE COFFEE!

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