EThekwini’s Phoenix housing contracts ruled unlawful
Three companies may not start building new dwellings but may finish those they have started
The Special Tribunal has ruled that the eThekwini Municipality's contracts with three companies involved in the Phoenix housing project are unlawful. Residents have been critical of the quality of housing being built and the eviction of some tenants. The Phoenix infill municipal housing project, which began in 2000, aimed to create affordable housing on vacant municipal land.
However, it is unclear how many affordable housing units have been built over two decades later. Judge Margaret Victor directed that Woodglaze, Madupha Business Enterprise, and Ready Homes may not start building new houses but may finish those already under construction. She declined to order the companies to repay their profits, citing a lack of evidence.
The tribunal found that the municipality created and maintained irregular arrangements, failed to maintain adequate records, and did not revoke unlawful arrangements when concerns arose. The service providers were required to provide beneficiaries with "good value for money" and evidence of available funding. Madupha and Ready Homes were introduced into the program without a prior public tender or adjudication process.
The tribunal ordered the municipality to run a lawful tender process if it wants to continue the project.
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