The Portfolio Committee on Human Settlements has slammed the Human Settlements department in the North West over ongoing delays in paying contractors, warning the crisis was crippling service delivery and threatening the survival of small and medium enterprises (SMEs).
Some of these delays exceed 100 days, the committee said.
During a recent oversight visit to Moretele Local Municipality, the committee found that persistent non-payment of service providers was directly contributing to stalled housing projects, deepening the province’s human settlements challenges and putting livelihoods at risk.
“Small businesses are critical pillars of economic recovery and job creation, and paralysing their cash flow is simply unacceptable,” said committee chairperson Nocks Seabi.
He emphasised that government departments must treat 30-day payment terms as “sacrosanct.”
Contractors unable to pay workers face work stoppages and growing frustration from communities, the committee noted, warning of a rising risk of protests.
The committee called for accountability and urgent corrective action from the department.
In addition to stalled developments, the committee raised alarm over the 1,000 RDP houses in Moretele still topped with asbestos roofing—a serious health hazard.
It demanded immediate verification and a clear medium-term plan for total asbestos removal.
“The health risks are too high for the asbestos not to be completely eradicated,” Seabi said.
The committee urged the department to strengthen project management, align plans with realistic budgets, and avoid overcommitting amid fiscal constraints.
Contractors and officials also flagged outdated project budgets that fail to reflect soaring construction costs.
In response, the committee called on the national Department of Human Settlements to urgently devise a sustainable financial mechanism that ensures project viability without compromising housing quality.
The committee will conclude its week-long oversight programme with a visit to the Eric Molobi Housing Innovation Hub, which deals with advanced building technologies and offers skills training to raise construction standards.
kamogelo.moichela@iol.co.za
IOL Politics
