Bloemfontein — A long-running low-cost housing programme in the Free State has become a costly and protracted failure, with R1.2 billion spent over 12 years and no clear end in sight, an investigation has found.
Scope of the failure
The projects began in 2014 as a R450 million cluster of developments. Since then the budget and timelines have spiralled. Inspectors found one Bloemfontein development where the 118 completed flats already account for an average of R3.6 million each when measured against money already spent on the site — compared with an original planned cost of R233,000 per unit.
Government officials and department insiders say three rental-stock projects alone have overspent by about R700 million. The department replaced key contractors and consultants as costs rose and delivery stalled, but officials now calculate the earliest realistic finish for those projects is the first quarter of 2029.
Where the projects are
The three troubled developments are:
- Dark and Silver City top site — Bochabela, outskirts of Bloemfontein
- Dark and Silver City bottom site — Bochabela, outskirts of Bloemfontein
- G-Hostel — Thabong, Welkom
| Project | Location | Initial unit cost planned | Observed average cost per completed unit |
|---|---|---|---|
| Dark & Silver City | Bochabela, Bloemfontein | R233,000 | R3.6m (for 118 completed flats) |
| G-Hostel | Thabong, Welkom | Included in cluster | Included in R700m overspend |
Contractors, consultants and alleged wrongdoing
The development saga has featured the cancellation of contracts with at least six building companies, a string of disciplinary hearings and criminal investigations. At the centre of the oversight arrangements was engineering consulting firm LTE Consulting, owned by Thulani Majola, which the report says was paid about R155 million before being replaced by the department as costs escalated and projects failed to progress.
On inspection, several blocks showed extensive damage and theft: copper plumbing, electrical wiring, plugs, balustrades and water tanks had been removed, windows were smashed, and many units had been stripped down to bare structures. The scale of vandalism and neglect means bringing the sites to habitable condition will require tens of millions more rands of work.
Impact on communities and timelines
Residents who were promised affordable rental stock and upgraded accommodation remain waiting. The delays and cost escalations have left communities without the housing envisaged more than a decade ago. Officials quoted in the investigation said the three major projects now targeted for completion in the first quarter of 2029 will require renewed contracting, security and rebuilding work to reverse the deterioration.
- Projects span both Bloemfontein and Welkom precincts.
- Multiple contractors have been removed from the jobs over the last decade.
- Consultants linked to the projects received substantial fees before being replaced.
What the findings mean for accountability
The investigation highlights systemic weaknesses in project oversight, procurement and asset protection. Criminal investigations and disciplinary processes are underway, but the report underscores that recovering losses and holding those responsible to account will be a lengthy process — and that correcting the physical damage will add to the taxpayer bill.
For now, the department faces three simultaneous tasks: finishing construction, repairing vandalised structures and ensuring tighter supervision to prevent a repeat. Until those are achieved, the province will continue to carry the financial and social cost of a housing plan that has produced very few habitable units despite large public expenditure.
Local residents, municipal officials and provincial authorities will be watching closely as the department attempts to translate the investigation’s findings into firm steps to complete the outstanding work and protect government assets.
