The Free State department of human settlements has allegedly returned R600-million to the National Treasury.
The money had been earmarked for the construction of low-cost houses in the province.
The housing backlog in the Free State has seen low-income earners not having a roof over their heads while others live in shacks.
It has emerged that the department of human settlements, led by ANC Free State deputy chairperson Toto Makume, returned the funds after it failed to build houses.
Motale Sebego, Free State human settlements spokesperson, told Sunday World at the weekend: “The department acknowledges that unspent funds will return to the National Treasury due to circumstances beyond our control.
Department regrets latest development
“[It] deeply regrets this unfortunate incident.
“However, we wish to restate our commitment to the poorest of the poor in the province that the provision of shelter is an inalienable right enshrined in our constitution.
“We are committed to making a difference and housing the most vulnerable.”
In a statement on Monday, Makume made a U-turn and denied that the R600-million was returned to the National Treasury.
He vowed not to return even a cent to the Treasury.
He acknowledged the uproar coming from the people of the Free State and described the move as spitting in the face of poor and working class.
“The surrendering of money to the National Treasury speaks against our promise of delivering houses, security and comfort,” said Makume.
During a meeting in July with officials from Mangaung and Matjhabeng, Human Settlements Minister Mmamoloko Kubayi raised concern about a manner in which the provincial department was doing things.
She expressed her disappointment at the way the provincial human settlements was failing on its fiduciary mandate to build houses despite having secured funds to do so.
At the time, Kubayi told the officials to show leadership and make sure that people get houses and better service delivery.
“We allocated resources which were supposed to change the lives of the people. Poor performance by contractors is a slap in the face of those who live in squalor,” said Kubayi.
She said she would not be surprised to learn that the funds had been returned to the National Treasury.
EFF not impressed
EFF provincial chairperson Mapheule Liphoko said the provincial department excels in failure. “They have yet again failed to spend the allocated budget,” said Liphoko.
“As a result, more than R600-million [was] returned to the National Treasury and will be allocated to other provinces who are spending on their budgets.
“The department has failed dismally in establishing and facilitating a sustainable process of housing development. There is a backlog of incomplete houses and housing projects.
“The people of Free State continue to live like rodents without any prospects of their humanity and dignity being restored.
“The situation of the under-expenditure is now happening for the fourth year without any consequences.”
