Human Settlements Ministry Denies R3.6 Million Free State Housing Projects Cost Claims

SOUTH AFRICA — The Ministry of Human Settlements has officially rejected media allegations regarding the construction costs of Free State housing projects, clarifying that individual units in the stalled developments did not cost R3.6 million each.

The Ministry dismissed the reports as baseless and factually incorrect, maintaining that no individual housing unit within the disputed developments reached the R3.6 million mark. According to the department, there are currently no verified facts or evidence to substantiate claims that any of the housing units in question cost more than R3 million.

The disputed reports originated from a recent Parliamentary question directed to Human Settlements Minister Thembi Simelane. The inquiry focused on blocked housing projects in the Free State, specifically highlighting the Dark and Silver City (top site and bottom site) developments in Bloemfontein, as well as the G-Hostel project in Welkom.

While denying the per-unit cost allegations, the Ministry acknowledged the severe challenges currently impacting housing delivery. It noted that stalled projects have deprived qualifying beneficiaries of their constitutional right to adequate housing. Furthermore, the department recognized that prolonged delays in implementing these projects have resulted in significant cost escalations, placing additional financial strain on limited public resources.

Due to the severity of the situation, the matter has been escalated to law enforcement. The Ministry confirmed that the Directorate for Priority Crime Investigation (DPCI), commonly known as the Hawks, is actively investigating the projects in question. The Ministry emphasized that allegations of irregular expenditure, project delays, and the mismanagement of public funds are being treated with the utmost seriousness.

In its statement, the Ministry urged the media and the public to rely strictly on verified information. Officials highlighted the critical need to distinguish between the overall escalated costs associated with stalled projects and the actual construction costs of individual housing units.

The Ministry remained resolute in its commitment to ensuring accountability for the challenges affecting housing delivery. It stated that it will leave no stone unturned in pursuing those responsible for the delays and associated financial escalations. Any public or private sector officials, contractors, or other parties found to have contributed to these failures will be held accountable and, where evidence warrants, will face the full might of the law.

Moving forward, the Ministry reaffirmed its dedication to accelerating housing delivery, protecting public resources, and ensuring that all qualifying beneficiaries ultimately receive their homes.