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MTHATHA - The Mhlontlo municipal housing programme has come to a halt since two contractors withdrew after a disagreement with the municipality.
Lack of water, labour issues and cash flow problems were some of the factors that led to the crisis. Mhlontlo spokesperson Siyamcela Choludiza said that due to these "major shortcomings" the programme had experienced financial problems and could not pay contractors. "The budget we received from the Housing Department was not designed to cater for delays and fluctuations in prices. After two years the budget cannot sustain the whole programme." About 119 houses have been left unfinished and the supposed beneficiaries are concerned about the soundness of the houses when they are completed. Choludiza said: "The crisis is expected to escalate as the building material ... is decaying." He admitted some municipal officials and employees had benefited from the housing programme. "The municipality had to pay one of the contractors and in the process we committed an error and signed in the wrong cheque book."
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