N2 gateway project brought to a halt

By Chanel September
20 March 2007

Frustrated contractors waiting to be paid, has brought local government’s housing project to a complete halt.

Building of the multibillion-rand N2 Gateway in Delft has been stopped, due to claims by contractors of an unpaid bill of R3.5 million for services installed between May 2005 and November 2006.

Mayoral spokesperson Robert MacDonald says that sub-contractors told the city the project is not moving due to poor cash flow management.

He added that mayor Helen Zille is to meet with the national director of housing Itumelang Kotsoane.

The city was removed from the N2 Gateway project by the National Housing Minister Lindiwe Sisulu in June when Thubelisha homes took charge of the project.

When Bush Radio tried to get hold of Kotsoane, he was not available due to back to back meetings.

But according to a daily paper, he denied that work has stopped on the Delft site blaming the city for the hold up so that the building of the houses could not be completed.