The Namibia Stop 8 Housing Project in Inanda, eThekwini, has been plagued with issues since its inception in 2019. With a budget of R120 million allocated for the construction of 343 houses, only three houses have been completed to date. This shocking lack of progress and quality in the project have raised concerns about the city’s ability to deliver essential services to its residents.
The two double-storey units that were built as part of the project have serious quality defects, including uneven brickwork on the stairs, ineffective drainage in the bathrooms and kitchens, and substandard ceiling boards. The third house, intended for a disabled beneficiary, lacks ramp access and was completed with a standard bathroom instead of one modified to meet the owner’s specific needs.
These deficiencies were brought to light by the Auditor General of South Africa during a briefing to the standing committee on public accounts (Scopa) in parliament. The auditor general’s report highlighted ineffective project management, resulting in significant cost increases and a lack of attention to quality and compliance with specifications for disabled residents.
The delays in the project were initially attributed to slow land expropriation for development, leading to 15 variation orders totaling R7.84 million. This, in turn, caused the project’s cost to escalate by R143 million. The lack of effective quality control procedures and oversight by the project team further exacerbated these issues.
The auditor general recommended that eThekwini streamline its planning processes, develop standard procedures for monitoring housing delivery, and improve quality control procedures to ensure that defects are identified and repaired during construction. The city was urged to take action to ensure that the final homes meet the required standards.
In response to the service delivery failures, the ANC recalled mayor Mxolisi Kaunda and appointed Cyril Xaba as his replacement. President Cyril Ramaphosa also appointed an intervention team to address the city’s water crisis, and the provincial government placed eThekwini under Section 154 administration. These interventions were aimed at addressing the city’s water shortages, corruption, and governance issues.
Despite having a well-resourced budget and office, the city’s financial controls had regressed, with key supply chain management positions left unfilled. The city struggled to collect revenue and pay creditors in a timely manner, and infrastructure maintenance and repair were underfunded. Irregular expenditure, lack of supply chain management controls, and non-compliance with regulations were major concerns highlighted by the auditor general.
In conclusion, the Namibia Stop 8 Housing Project serves as a stark example of the challenges faced by eThekwini in delivering essential services to its residents. The city must take urgent action to address the issues raised by the auditor general and improve its governance and project management practices to ensure that future projects are completed successfully and meet the needs of its citizens. A recent report highlighted the root cause of ongoing issues in the city of eThekwini, pointing to weaknesses in internal controls as the primary culprit for non-compliance. The report emphasized the need for regular reviews of the sewerage network and the development of plans to address deficiencies. It also stressed the importance of passing appropriate capital and operating budgets in line with national treasury norms to support these plans.
One of the key recommendations from the report was for city management to lead by example and shift the culture of the municipality towards compliance with laws and regulations. This change in tone at the top is seen as essential in tackling the recurring issues and ensuring accountability.
The auditor general called on the Standing Committee on Public Accounts (Scopa) to intensify its oversight on consequence management and the implementation of remedial action by the city. This includes monitoring infrastructure management and planning, as well as the implementation of the audit action plan.
Scopa has been tasked with requesting reports on the management of key projects, especially those previously flagged in audits. Additionally, they will focus on addressing weaknesses in the city’s supply chain management measures. An oversight visit to eThekwini is scheduled for the end of November to further assess the situation on the ground.
Overall, the report underscores the importance of strong internal controls, compliance with regulations, and effective oversight in ensuring the efficient functioning of municipal operations. By implementing the recommendations outlined in the report, the city of eThekwini can work towards resolving its issues and improving governance practices for the benefit of its residents.
