New contractor to be appointed for Chantelle Housing Project
New contractor to be appointed for Chantelle Housing Project
The Chantelle social housing project is no longer expected to experience delays after standing incomplete for months.
The delays had frustrated residents, however, the Tshwane metro recently confirmed that a new contractor is expected to be appointed in the next financial year.
The housing development, which was expected to alleviate the growing demand for affordable rental units in the north of Pretoria, has been at a standstill for months after the metro terminated the contract of the previous service provider due to slow progress and ongoing performance issues.
Metro spokesperson Lindela Mashigo said no units are currently occupied.
'Some shell units are still incomplete, and Housing Company Tshwane (HCT) cannot accommodate tenants prior to finalising construction and securing all necessary approvals.'
According to Mashigo, the original contractor failed to meet key milestones despite multiple attempts to resolve the issues through the project's principal agent.
Eventually, the decision was made to terminate the contract, as described by the metro, in the best interests of all stakeholders, including the community, HCT, and the municipality.
With construction completely halted, residents and potential tenants were left disheartened.
Community members say the unfinished structures have become an eyesore and a symbol of mismanagement.
'It's heartbreaking. We were promised homes and dignity, but all we have are empty shells and broken promises,' said Mecha Ramorula.
The metro now claims that the entire development will only be completed during the 2026/27 financial year, pushing the timeline back significantly.
'It feels like we're being strung along. Every year, there's a new excuse. How much longer must we wait?' asked David Mofokeng.
While the metro confirmed that only approved work has been paid for, concerns remain about the project's financial sustainability.
Additional funding has been requested from the Social Housing Regulatory Authority (SHRA), but a response is still pending.
'The final stages of the project are dependent on SHRA's allocation of funds,' said Mashigo.
'However, steps are being taken to ensure tight budget control once construction resumes. This includes deploying a qualified resident engineer and a dedicated HCT site representative to monitor progress and approve work.'
Despite the reassurances from the metro, many residents are calling for greater transparency and community consultation. 'This project was meant to change lives. Now it's just another government project lost in bureaucracy. We need to know who is being held accountable.'
The metro initially set the budget at R52.8-million, but it has been scaled down to R20-million due to several challenges, primarily associated with the contractor's performance.
The reduction has also led to a decrease in the annual target for housing units, causing delays and impacting the overall timeline for the project's completion.
Metro spokesperson Selby Bokaba previously told Rekord that the primary reason for the budget reduction is the slow progress by the contractor responsible for the project.
The contractor failed to meet the agreed timelines, affecting both the financial and non-financial targets outlined in the project's business plan.
'This underperformance necessitated a reassessment of the budget to reflect on the contractor's capabilities and the realistic progress of the project,' said Bokaba.
He added that the annual target for building the Chantelle social housing units has been decreased from 156 to 50.
Out of the 156 units planned for Phase 1A, only 82 units have reached the shell level.
The project aims to make housing affordable for residents earning between R1 850 and R22 000 per month.
Designed to cater to a variety of accommodation needs, it will consist of 930 two-bedroom, 112 bachelor and 56 studio units as well as a variety of amenities and services for residents.
These include playgrounds and sports fields, as well as landscaped areas for residents to enjoy.
Despite the budget reduction and lowered targets, HCT remains committed to addressing the housing needs of low-income residents.
Bokaba reaffirmed that the plan to deliver 1 098 units at Chantelle remains intact.
'To mitigate potential negative economic impacts due to these changes, HCT has implemented initiatives such as prioritising local labour, supporting small and medium-sized enterprises through subcontracting opportunities. It is also launching community development programmes that provide skills training and business support,' he said.
Do you have more information about the story?
Please send us an email to bennittb@rekord.co.za or phone us on 083 625 4114.
For free breaking and community news, visit Rekord's websites: Rekord East
For more news and interesting articles, like Rekord on Facebook, follow us on Twitter or Instagram
At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
Stay in the know. Download the Caxton Local News Network App
Stay in the know. Download the Caxton Local News Network App here
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Eyewitness News
4 hours ago
- Eyewitness News
SIU freezes more than R20m worth of assets linked to irregular Transnet contracts
JOHANNESBURG - The Special Investigating Unit (SIU) has frozen more than R20 million worth of assets linked to irregular Transnet contracts. This included luxury vehicles and high-value properties. The preservation order by the SIU and Transnet is part of an ongoing investigation into three allegedly irregular contracts for property valuation services with the port and rail company. Transnet had referred various suspicious contracts involving Transnet property to the SIU for further investigation. The contracts, awarded in 2019, 2021 and 2022, have a combined value of R89 million. Working closely with Transnet, the SIU's investigation revealed serious flaws in the procurement processes, raising concerns about compliance with supply chain management regulations and the possibility of undue influence in the awarding of these contracts. The SIU and Transnet believe that Transnet may not have received full and fair value for the payments made under the disputed contracts. Restrained items include a Porsche 718 Boxster, a Porsche Macan S, a Mercedes C200, a VW Amarok, properties in Bryanston, Fourways, Broadacres and four office units in Vanderbijlpark. The order interdicts MM Real Estate (PTY) LTD, Humphrey Tshepo Moyo, Neo Shawn Matlala and any other party from selling, disposing, leasing, transferring, encumbering (including by granting rights of retention), transferring, donating, or dealing in any manner whatsoever to the frozen properties, pending the finalisation of civil proceedings.
Eyewitness News
6 hours ago
- Eyewitness News
Tshwane data maintenance shut down halts residents' access to certain services this weekend
JOHANNESBURG - Residents in the City of Tshwane won't be able to access certain billing and customer support services this weekend, as the metro shuts down core systems for data maintenance. From 6pm on Friday, the city's SAP systems will undergo critical back-end work, impacting everything from meter reading enquiries to logging service complaints. The services will be back online on Monday morning. Officials said the downtime was necessary to improve system performance, but it comes at a cost. This means no email support, no billing assistance, and no in-office service logging for the next three days. But essential services, including power outage reporting and prepaid electricity vending, will remain online. City spokesperson Lindela Mashigo said its call centre would remain open throughout the maintenance period for urgent matters. "Payments ought to be made via e-Tshwane and third-party pay points, for example, post office, Pick n Pay, Spar, Shoprite, banks, et cetera. We apologise for any inconvenience and thank you for your cooperation."
Daily Maverick
a day ago
- Daily Maverick
Spar's reset continues – but dividends remain off the table
Spar shareholders might still be waiting for a dividend, but with a strategic retreat from Europe and a renewed focus on local markets, there's hope for payouts by 2026—if it can navigate the consumer pressure back home. There is still no dividend for Spar shareholders, almost three years after the last payout. But the tide may turn by the end of 2026. Spar chief financial officer Reeza Isaacs told Daily Maverick this week that while no dividend had been declared for the interim period, the company was modelling scenarios to possibly resume payouts within the next 18 months. 'We were a dividend-paying share,' Isaacs said, 'and I think our investors expect us to get back to paying dividends.' Spar is retreating to familiar territory after burning a few bucks in Europe and is preparing to face a battered consumer back home. The company is scaling back on its operations in Europe and keeping its eye on the markets it believes it can count on during this 'strategic reset'. 'We completed our exit from Spar Poland in January this year and finalised the restructure of our southern African debt in March,' Spar group CEO Angelo Swartz said. 'The decision to exit Switzerland and the UK was taken after a strategic review of our European footprint. These actions align with our long-term commitment to focus on our core geographies.' Trouble in the Alps and rain over Devon This move back to core markets comes after heavy losses and operating headaches in Europe. Spar's Swiss and UK ventures, once part of a grand international expansion, have been declared discontinued operations. The Swiss arm posted an operating loss of CHF2.4-million (R52-million), after a cyberattack in March cost the company an estimated CHF2.5-million (R54-million) in profitability, Swartz said. Concerning the sale process of Spar's UK and Swiss operations, Isaacs told Daily Maverick that it was 'still in negotiation'. Poland: A 'necessary' loss Between impairments, foreign exchange translation losses, and debt repayment costs, Swartz said the exit from Spar ventures in Poland alone delivered a R531-million blow to Spar's income statement. He framed the loss as necessary: 'This transaction was a key enabler of our balance sheet optimisation strategy,' he said, noting that there were no further cash exposures linked to the now disposed of Polish operations. In the meantime, management insists the strategy is working. 'We are building a stronger, more profitable foundation. Our cost discipline, margin management and pricing strategy are working,' Swartz said. 'We're making more from each rand we earn,' Schwartz said. How does this affect you? Spar's exit from Europe means its attention, energy and cash are now concentrated at home. That could mean more promotion, investment in delivery and better competition against heavyweights such as Checkers and Pick n Pay. But it's also a sign of the pressure consumers are facing. Spar's data shows that customers are doing more small shops and sticking to budget-friendly items. Back from the brink in KZN Stabilisation of Spar's KwaZulu-Natal distribution centre, which previously experienced significant issues with its SAP system, contributed to an improved operating margin. Isaacs called KZN's recovery 'a strong turnaround with a marked improvement in profitability'. But Swartz was candid about the ambitions of the group's revenue. 'Let's be candid: sales growth was below expectations. The southern African consumer is still under severe pressure.' For a while now, South Africans have been price conscious, said Prof Ronald Goldberg, associate professor in marketing management at North West University. This is even more prevalent in 2025 due to rising fuel prices, inflation and limited disposable income, he noted. In Ireland, Spar's revenue fell marginally amid store closures and volume declines driven by inflation, Isaacs said, and added that high-cost categories like cacao and coffee took a hit, while tobacco sales dipped from the previous year. According to McKinsey's 2024 State of Grocery Retail report, retail media networks (RMNs) are boosting retailers' bottom lines in Europe and North America and could offer similar gains in South Africa. (Graph: McKinsey) Cost, convenience, and playing catch-up The company is relying on a few strategies to win back market share. These include improving its price perception, scaling online and on-demand fulfilment, and supporting store level execution through retailer rebates, Swartz said. SPAR2U, the company's online grocery delivery service and app, saw delivery volumes surge to 174% year on year and operates in 580 locations. Spar's new partnership with UberEats is also expanding its reach without the cost of new retail space. Offering multiple platforms to a consumer is a complex task and could hold increased risk for any retailer if not implemented with caution, Goldberg said. 'For a retailer like Spar, the implementation of a multi-platform approach could enhance brand presence as well as diversify their value proposition.' Isaacs said that even though they were 'playing catch-up' when launching SPAR2U, the growth they had seen from the service had been exponential, which showed that consumers preferred online grocery shopping. 'Many customers are becoming increasingly motivated by convenience,' Goldberg said and added that before the pandemic, South Africans were sceptical about online shopping. 'Since then, consumers have now become so used to shopping for anything anywhere by pushing a few buttons on a device.' According to Swartz, Spar's customer loyalty remains strong at nearly 80%. But he has ambitions to improve on this figure: 'We're just on 79% right now. I'd like to see a 12-month rolling average over 80%,' he said. Brand loyalty still exists, but it's no longer unconditional. 'Consumers weigh price and convenience heavily, while brand loyalty is earned through sustained performance and relevance,' said Goldberg. Spar and brand equity With retailers such as Checkers investing heavily in innovation and customer experience, Goldberg says that Spar's continued relevance will depend on: Its ability to standardise core brand values; Leveraging its localised strengths; and Continuing to offer increased value and reasons for customers to shop at its stores. Shifts in consumer choices The average basket size of Spar consumers remains stable, but the frequency of shopping has changed. Schwartz noted smaller, more frequent shops, particularly in its lower-income stores, which grew more than 6% as top-end clusters declined. 'This affirms our strategy to deepen the value offer,' Schwartz said, referring to SaveMor, Spar's private budget-conscious label. Goldberg agrees. 'Consumers are opting to buy value items instead of luxury items. I believe the majority of the South African market constitutes a cost-sensitive market currently, where success in selling products depends on the perceived value-for-money equation.' Spar COO Megan Pydigadu added that any divestment decision in Switzerland would prioritise continuity and sustainability. 'We want to make sure we are disposing of the business in the best manner for our employees in Switzerland, for our retailers and also our suppliers,' she said. Looking ahead, the company is focusing on operational execution, strategic partnerships and margin discipline to turn the tide. 'We understand this environment,' Schwartz said. 'We've taken steps to shield the business from the worst of it, and we are now better positioned to capture upside when the consumer turns.' DM
