Housing project spends substantial amount wihtout business plan

By Chanel September
28 October 2006

The provincial department of local government and housing has spent almost R92-million on the N2 Gateway project without a formal business plan.

This has been disclosed in the auditor-general's report, included in the department's 2005/2006 annual report made public this week.

Vusi Tshose, spokesperson for local government and housing, said the department had had to go ahead with the project before approval was finalised because of the "great pressure for housing delivery" in the province.

Under the N2 Gateway project, begun last year and touted as a national pilot for low-income housing, about 22 000 units are to be built for low-income earners in Langa, Gugulethu, Crossroads and Airport Industria.

According to the Cape Argus the R6,5-million was paid by the City of Cape Town, but later reimbursed by the provincial department of housing.