All dressed up, but going nowhere.
With paved roads, a sewerage network and street signs already installed, a future multimillion-rand housing development in Port Elizabeth has stalled after two contractors failed to finish off the work.
Phase six of the Khayamnandi housing project was abandoned by the Nelson Mandela Bay municipality in May, despite 90% of the infrastructure required for a housing development being completed – with the work done valued at about R32m.
Today, large sections of the newly paved roads and some of the pipes in the sewerage network have been ripped up and removed by vandals.
The installation of the infrastructure was done through a joint venture by Ludumo Trading and VNJN Trading.
But Ludumo Trading owner Luzuko Matyolo, 39, claimed the joint venture had run out of money after VNJN Trading director Siya Ngqongwa, 44, allegedly started spending on frivolous items in Sandton.
Matyolo, however, refused to supply bank statements backing up the allegations or detail the items.
Ngqongwa declined to comment.
The alleged spending spree in Sandton also saw some workers not being paid for months while others received reduced wages.
The debacle comes amid a housing crisis in Nelson Mandela Bay that has seen a wave of land invasions and housing protests since December 2017.
The municipality has – after a housing indaba earlier in 2018 – put all land evictions on hold until a policy on how to deal with the issue is drafted and adopted by the council.
Joseph Kedama, 42, who worked on the project from December 2015 to March 2018, said he was still owed R8,642 and had been struggling to feed his four children as a result.
“We started paving and installing the stormwater piping in December 2015, but in March this year we were told there was no more work.
“This confused us because we were far from finished.
“The companies reassured us that they would pay us, but have yet to do so.”
According to some of the workers, they first suspected money problems when site manager Siphelele Nzuza allegedly told them to lift up newly laid paving from one section and use it on another.
“We had done about 6km of paving when, in some instances, we were asked to uproot about 100m of the paving and place it somewhere else,” one worker said.
“This was done so the contractors could claim they were forging ahead with the job.”
Nzuza refused to comment on the allegations.
Another worker, Thembinkosi Tikinca, 42, said: “We were being paid on time until December but then our salaries were always short.”
Tikinca also worked on the site from December 2015 to March 2018 and claims he is owed R11,137.
Other workers claim they are owed two months’ wages.
Municipal spokesperson Mthubanzi Mniki said: “The contractor has not completed the project. It is an abandoned site.”
He said the municipality had paid the two companies for all the work done, bar the retention amount – usually about 5% of the total that is held back until the project is completed and passes muster.
“A consulting engineer regularly inspects the site on behalf of the municipality to confirm any damages or changes.”
He said Khayamnandi Phase 6 North was for the provision of services for the 401 sites.
He declined to say how much had been paid to the two companies or how much had been held back, saying it was a sensitive issue.
He could also not say what the plan of action was.
iNkazimlo Construction, which was subcontracted to do parts of the paving and stormwater pipes, has also been left out of pocket.
“I had six of my own labourers who I had to pay from my own pocket due to non-payment by Ludumo,” owner Sechaba Wessi said.
He said the contract was worth R637,951 and he was still owed R12,700.
Matyolo confirmed the outstanding amount for Wessi but said he first had to receive the retention money from the municipality.
He said the joint venture had started having financial problems due to the alleged mismanagement of funds.
“It was brought to my attention that the project became problematic financially and we had to change the memorandum of agreement because of the mismanagement of funds.”
He alleged Ngqongwa had started to spend money from the bank account in Sandton.
“There were delays in payments – the municipality would make a payment into our JV account and VNJN would not pay the workers and suppliers.
“Instead, I saw money being withdrawn in Sandton.”
Matyolo said he had been unable to contact Ngqongwa shortly afterwards.
In 2017, he had tried to close the joint bank account.
“Since last year, I have been trying to get assistance from him [Ngqongwa] as he is the reason things are as they are.
“I even went to the bank to try to remove him from the account but there were legal issues. Everyone thinks I have spent municipal money yet I have made no profit.
“What is key for me is to complete the project and pay the salaries, but that is only possible if the municipality releases the retention money and certificate of completion.”
Matyolo eventually used his lawyer, Mbulelo Dyushu, to help remove Ngqongwa as a signatory on the account.
Dyushu sat in as a legal mediator at a discussion in which Ngqongqwa agreed to have his access to the funds stopped.
Matyolo said: “I did this in the interest of the joint venture because I did not want the project to suffer.”