MunicipalNews

Business forum ‘captures’ Leeuwpoort housing development

Members of the forum reportedly stormed the construction sites and apparently threatened contractors and their workers with violence should they fail to comply with their demand to cease all operations.

The mega Leeuwpoort housing project, launched early last year, expected to deliver homes to at least 22 000 families desperately in need of accommodation, has been halted.

The Ekurhuleni metro spokesperson, Themba Gadebe, confirmed that the project which aims to address the housing backlog in the metro was brought to a halt by a group of people called Business Forums and Military Veterans.

CLICK THE BELOW LINK TO READ STORY ON THE AMALGAMATED BUSINESS FORUM:

Business forum wants to cash in on economic development

“They are demanding control over the project’s 30 percent local empowerment spend,” said Gadebe.

When asked if the municipality recognises the group in question as a valid and proper organisation, Gadebe said, the metro did not.

“Any group of people can organise themselves based on common interests.”

Local community leaders, including the Ward 32 councillor, Marius de Vos, expressed their concerns about the abrupt stoppage of the project.

They demanded to know as to why these few individuals should be allowed to hinder government in its efforts to deliver services.

“Why should the homeless masses suffer because of a few individuals with business interests?” asked de Vos.

The councillor added that the disruption has resulted in a number of people being left without jobs and income to support their families.

FILE PHOTO: Seen at the construction site of the more than 22 000 housing units are, Ward 32 Clr Marius de Vos and admin assistant Lucy Frans.
  • Mafia-style tactics

Gadebe said the disruption of a big project like this is unfortunately not an isolated case.

“There is a growing trend in the country as a whole, where so-called business forums who are using mafia-style tactics go around halting various projects and claiming to be acting in the interests of the communities.

“Such practices are not only illegal, but go against government’s objective in transforming the South African economy.

“Our communities are awaiting service delivery,” said Gadebe.

  • Legal process underway

The metro confirmed that it has commenced with a legal process in order to tackle this unlawful behaviour which seeks to threaten the successful implementation of the project.

“The City of Ekurhuleni is very intolerant towards such thuggery and bullying. The city has commenced a legal process in order to ensure the successful implementation of the project and that no further delays will be experienced under the false pretence of community interest.

“Our communities are interested in dignified housing opportunities, which are what we are focusing on as a city.”

Gadebe said in order to engage with business stakeholders, the City of Ekurhuleni through the Department of Economic Development launched the Ekurhuleni Business Council (EBC), which is the representative of all business forums within the metro.

“Business forums have been urged to form part of EBC in order to engage with the city in a more organised manner.”

  • Expected project delay

Speaking about the ramifications of the delays of construction works on a project of this magnitude, Gadebe said “The city does not only grasp the ramifications of the delay, but we are also extremely concerned of the financial impact that such delays will have on our contractors as well as the city.

“Construction delays lead to unnecessary expenditure.”

The project’s estimated completion date is December 2024, but some contractors fear that these kinds of delays have the potential to prolong the process.

“Construction is expected to resume this month provided the legal process run expeditiously,” said Gadebe.

  • Security to be intensified

“To prevent such a group from interfering with the construction, the metro said security will be intensified on site.

“We need to ensure the safety of all those who are working on the project and that no further threats and intimidation are taking place. We are a government that cares for its people.”

He said contractors had already started with the civil works for the thousands of homes when they were approached by the group of people who reportedly demanded that they stop working.

The project was hailed as a game-changer for the city during a sod-turning ceremony to mark the official start of the project on February 27, last year.

  • Scope of project

The Leeuwpoort project consists of three integrated residential development areas – in the North (Parkdene Extension Seven and Reiger Park Ext 19) and the South, close to Sunward Park.

At that time, the metro said the projected cost for the metro is R2.9-billion over the projected seven years construction period.

It’s made up of subsidised, social, Flisp, bonded and commercial housing opportunities.

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