The Democratic Alliance (DA) has submitted a comprehensive dossier to the Special Investigating Unit (SIU), alleging serious financial mismanagement, contract interference, and corruption within the Eastern Cape Department of Human Settlements (DHS) and local municipalities.
Chantel King, DA Shadow MEC for Human Settlements, said that the reports focus on the failure to disburse over R25 million in certified claims, with R15.3 million owed in Matatiele and R9.7 million in O.R. Tambo.
This non-payment has resulted in a deadlock for RDP housing projects, leaving thousands of vulnerable residents without homes.
“Contractors remain unpaid, workers have been laid off, and partially constructed houses are now susceptible to vandalism and decay, transforming what should have been homes into symbols of state failure,” said King.
The evidence submitted points to alleged violations of the Public Finance Management Act (PFMA) and the Municipal Finance Management Act (MFMA).
Certified claims have reportedly been disregarded or dismissed without justification, alongside mismanagement and diversion of project budgets.
“Instead of ensuring homes reach those in need, there’s evidence of contract interference crippling service providers,” noted King.
“Allegations of bribery and favoritism have surfaced, with pressure on contractors to provide kickbacks for payment approvals. Despite clear financial misconduct, senior officials act with impunity, while communities bear the brunt.”
King emphasised the urgent need for the SIU to investigate the whereabouts of the missing funds, identify those hindering payments, and scrutinise allegations of preferential treatment toward politically connected contractors.
“Immediate action must be taken against those sabotaging housing projects deliberately. This isn’t just financial mismanagement—it’s an injustice against the people of the Eastern Cape,” King said.
“The Democratic Alliance remains resolute in demanding accountability, enforcement of financial regulations, and completion of these essential projects. The SIU must act swiftly.”
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