The projects began in 2014 and remain incomplete.
President Cyril Ramaphosa visits the Dark and Silver City housing project in Bloemfontein, with Free State Premier Maqueen Letsoha-Mathae. Picture: department of Human Settlements
The Directorate for Priority Crime Investigation (DPCI), commonly known as the Hawks, is investigating three Free State housing development projects after a programme initially budgeted at R450 million in 2014 ballooned to approximately R1.2 billion over 12 years, with some completed units reportedly costing taxpayers as much as R3.6 million each.
The projects, plagued by delays, contractor failures and escalating costs, include the G-Hostel development in Thabong, Welkom, and the Dark and Silver City top-site and bottom-site developments in Bochabela, Bloemfontein.
Despite the significant expenditure, parts of the developments remain incomplete, while some completed housing units cannot be occupied because of a lack of basic infrastructure.
Human Settlements Minister Thembi Simelane confirmed the latest developments on 29 October 2026 in a written parliamentary response to MK party MP Thulani Innocent Gamede, who requested an account of the R1.2 billion housing programme and questioned the escalating costs.
Hawks investigate three housing projects
Simelane confirmed an investigation into the three projects in Bloemfontein. This is according to information provided by the provincial Department of Human Settlements.
“The matter remains under investigation by the Hawks in Bloemfontein. The investigation seeks to establish whether criminal conduct occurred in connection with the material irregularities identified by the Auditor-General of South Africa in the three projects.
“No final determination of criminal responsibility can therefore be reported at this stage,” the minister said.
Disciplinary proceedings for housing projects
Gamede also asked the minister what disciplinary action had been taken against officials responsible for continuing to fund the projects despite escalating costs, and by what date disciplinary proceedings will be concluded.
Without disclosing the specific disciplinary action taken against officials, Simelane replied: “The Province has confirmed that disciplinary processes relating to the identified material irregularities are underway and are being conducted in accordance with the applicable disciplinary framework.
“These processes must establish the responsibility of the officials concerned and determine the appropriate disciplinary outcomes.”
Commitment to minimising delays
According to the minister, the provincial department expects to conclude the disciplinary proceedings during the 2027-28 financial year.
“This is an anticipated completion period, as a specific date will depend on the progress of the proceedings, including witness availability, legal applications, postponements and the complexity of the matters,” she said.
“The Province has indicated that its approach is to minimise unnecessary delays and finalise the proceedings as expeditiously as possible, while ensuring procedural fairness and legally defensible outcomes.”
G-Hostel project consumes more than R608 million
Sunday Times‘ investigative article raised eyebrows about the three projects.
According to DA spokesperson on human settlements in the Free State Legislature, David McKay, the G-Hostel project has consumed more than R608 million, nearly three times its original budget, but remains only 67% complete.
McKay said hundreds of completed units were still standing empty because the department had failed to provide essential sewerage and electricity infrastructure.
“It (the department) has requested a further R401 million to complete the remaining units.”
The project was initially intended to deliver 780 housing units, but has experienced repeated contractor changes and delays since its launch in 2014.
Silver City requires further R220 million
In Mangaung, the Silver City development has also experienced substantial cost escalation.
“The Silver City project has consumed over R632 million, with completion now dependent on a further R220 million in unfunded costs,” said McKay. “The average cost per unit in these projects has soared to over R1 million, a grotesque insult to the thousands still waiting for a roof over their heads.”
The Dark and Silver City development consists of two sites, top and bottom, in Bochabela, Bloemfontein.
The developments have experienced contractor changes, construction delays and problems with vandalism and infrastructure.
The escalating costs have raised further questions about the management of public funds and the department’s oversight of the contractors appointed to deliver the housing units.
