Thubelisha will cease operations from end of July

The Democratic Alliance (DA) rejects Thubelisha Homes' attempt to blame the DA for its own management failures in respect of the disastrous state of the houses in the N2 Gateway project.

In a briefing to the Portfolio Committee this morning by Thubelisha Homes it was confirmed that the beleaguered project management company of the controversial N2 Gateway project will cease operations at the end of July. Thubelisha Homes, an agency of the national department of housing is bankrupt and all projects currently handled by them are to be transferred to the various provinces where they are located.

When the issue of the poor quality work on Phase 1 of the N2 Gateway Project was raised, Thubelisha was quick to point out that the City of Cape Town was the implementing agent at the time and that they were only appointed as project managers in 2007. This left the impression that the City of Cape Town was responsible for the project.

What Thubelisha failed to indicate however, is the fact that the City of Cape Town was removed from the project when the Democratic Alliance took control of the City in 2006, and if they were only appointed in 2007, then who was managing the project between 2006 (when the City was removed) and 2007 when Thubelisha was appointed?

It could only have been the Provincial Housing department, or the National Housing Department. Although Thubelisha also acknowledged that the contractor is currently doing the remedial work, the Project Managers at the time must be identified to answer questions that have led to the tenants' protests and refusal to pay their rentals. As 75% to 80% of tenants are not paying rentals, the real concern is that the ongoing maintenance is going to suffer and deteriorate.

In an unusually frank admission to a question from the Democratic Alliance about who, or what, was responsible for this sorry state of affairs, the acting CEO admitted that it was due to bad management by Thubelisha. However, what is also of concern, and what was up until now unknown, is the fact that Thubelisha appeared to have carried out work without a proper mandate approved by the cabinet after their original mandate concerning the rightsizing of homeowners came to an end in 2006. This was given as part of the reason why they company suffered from cash flow problems. Because their ‘revised' mandate was not approved by Cabinet, Treasury did not transfer the requested operating funds to keep them liquid, the Committee was informed.

It is time that the governing Party who was in control of the City of Cape Town during the birth of the infamous N2 Gateway Project answer this, and other irregular policy and finance related questions that was raised in a SCOPA meeting regarding the Auditor-General's report on the Project!

When fingers are pointed to the City of Cape Town, it must be made clear that it was under the previous administration that these irregularities transpired.

Statement issued by Butch Steyn MP, Democratic Alliance shadow minister of human settlements, July 8 2009

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