Location: Umlazi T-Section, Ward 89, Durban, KwaZulu-Natal
Type: Community rental housing for low-income households (R800–R3,500/month)

Client: eThekwini Metropolitan Municipality
Funding: KwaZulu-Natal Department of Human Settlements
Contractors: Varies by phase; Phase 1 handled by Mandlethu Projects (2009 pilot)
Project Value: Approx. R31 million – R60 million per phase
Total CRU investment in Umlazi area: Over R111 million

Phases and Dates:

2009 – Pilot phase began under Mandlethu Projects

2022 to 2024 – Phase 2: Construction of 54 units began, extended to April 2025

June 2024 – Tender issued for Phase 3A: 96 new units

November 2024 – Oversight visit confirmed 2 of 9 blocks were under construction

Challenges:

Delays from structural issues in old hostels

Tensions over procurement; DA and IFP questioned R19.1 million extension

Residents in nearby units faced poor services, non-payment issues

CRU design criticized for not matching cultural/household needs

It is understood sanitation pipes covered in vegetation in areas including Northdale and Riverside are preventing sewer teams from conducting maintenance.

Councillor Renisha Singh says it has been an issue for years, causing blockages and spills that overflow onto residents' premises.

"This is actually depriving the residents’ of quality of life. They can't even step into their backyard with the stench that is coming from this sewer overflow, and many of them have actually fallen ill. There are a few residents that have gotten doctors’ notes that their immune systems are being compromised."

READ: uThukela team to tackle sewage spills

She has urged uMsunduzi Municipality to resolve the issue.

"I have had several meetings and onsite meetings, including site visits with the entire sanitation team and the deputy mayor as the chair of the infrastructure portfolio, but after these meetings, there has been no response."

“We are owed millions by this government and have been raising concerns since last year with no solution. On Monday, we will be picketing outside the Public Works office in KZN to protest the same issue. Unfortunately, the department failed to deliver on its promise to pay contractors by mid-December, leaving many of us without money over Christmas and facing pressure from loan sharks,” said contractor Lungi Zuma.


Responding to the allegations of non-payment, KwaZulu-Natal Public Works MEC Martin Meyer said his department understood the frustrations and that the matter was being addressed at cabinet level.

“We paid more than R500 million to contractors in December and managed to reduce the outstanding debt from R900 million to R200 million. However, the reality is that we don’t control the budget. We must wait for payments from our client departments, whether it be education or others. We are addressing this at the highest level with cabinet and working hard to find a solution,” Meyer said.

Since taking office, Meyer has also intensified efforts to combat corruption within his department.

Recently, several officials, including the former director of the Supply Chain Management unit and three others, were implicated in alleged negligence, corruption and misconduct, which reportedly cost the department more than R1 billion.

Meyer confirmed that criminal charges are being pursued and said efforts would be made to ensure those found guilty are not re-employed within government.

The crackdown has extended nationally, leading to the arrest of several officials from Public Works departments in other provinces.


The arrests have confirmed longstanding complaints from contractors that corrupt officials demand kickbacks for tenders, which affects the prioritisation of payments.

While welcoming the anti-corruption drive, contractors say it offers little immediate relief to their financial struggles.

“It’s good news that they are finally taking action against corrupt officials, which we have been talking about for a long time, but it doesn’t solve our payment issues. Arresting officials doesn’t provide financial relief. We have commitments and debts for work already done for the government.


“We are being told that Public Works is owed money by the Department of Education, which is why they can’t pay us. But why should that be our problem?

We complete the work and tender for jobs with Public Works as the custodian of these projects, yet when it comes to payments, we are told it’s not their responsibility. So why do they issue tenders if they can’t pay? Where is the budget for these contracts?” asked Zuma, who claims to be owed more than R2 million in outstanding payments.

The bank has been under strain for the past few months after a repayment administrator was appointed by the Prudential Authority to oversee the issue of customer deposits in the bank.

The matter came to a head on Thursday when it was announced that the Prudential Authority had decided to bring a court application to liquidate the bank. As a result the bank was ordered to cease its deposit and withdrawal functions. This occurred without any public warning, meaning the bank’s customers found out about the decision when they tried to use their bank cards and the transactions were declined.

Money for stokvels, funeral clubs, and co-operatives is now trapped in the bank, with depositors of those funds unable to access them.

Sandile Nkosi, a councillor in the Ingwavuma area, described the situation as “tense”.

“There is a lot of anger and frustration; the community feels like they have been robbed of their money.

“This situation went off like a bomb. The customers were not informed about it; their funds are trapped there and they cannot withdraw their money. The customers should at least have been informed that they must move their money to other banks.”


Nkosi said Ithala was the only bank in the community and, without it, the town could die.

“The shops and everything in this town rely on this bank to function. With this decision, it means that people will now have to travel to Jozini to access other banks to withdraw their money once they have access to it. Jozini is about 50km away, and the transport fare is almost R50 by bus and close to R100 by taxi.”

Nkosi said even the payment of social grants relied on the bank and he was worried about what would happen with the February grants.


“I have had calls from business people complaining that they have R50 000 stuck inside the Ithala Bank accounts and cannot access it. The bank is closed, and the customers do not have anyone they can go to for help.”

A customer of the bank, who works at a local crèche, said they were told by bank officials that many customers might have access to their money by the end of the month.

Another customer said: “This has traumatised us. There was no thought given to us as a community in this issue because this is the only bank that we have here.


“We received a message at midnight on Thursday that Ithala was closing its doors. We rushed there on Friday morning only to find that the place was now closed,” she said.

Thembeni Msweli, a businesswoman, said the Ithala saga had caused friction between her and her workers.

“I was supposed to pay my employees on Friday. When I inserted the card to withdraw money, it was declined. I later got a message saying everything has been frozen.”

Mfananaye Mathe, mayor of the Jozini Local Municipality, said thousands of people were dependent on Ithala.

“This decision is going to push people and businesses out of that area. If people have to travel to Jozini to access a bank, they will buy whatever they need there, which means the shops in Ingwavuma will go out of business.”