Social housing project site closure shocks Ward 102 councillor

A social housing project in Randburg, meant to deliver affordable homes to working families, has been suspended for the second time this year, raising fresh concerns about the future of a development that has been mired in delays, funding problems, and a Hawks investigation.

Ward 102 councillor Bea Campbell-Cloete visited the Selkirk Avenue site on June 26 after receiving no prior notification of the latest stoppage. She found a notice on the entrance gates stating that the project had been halted, pending possible cancellation. “I did not know about this. I was not informed about this. This is a big concern to us.”

The Selkirk social housing project was first approved by the Johannesburg Social Housing Company (Joshco), in November 2010. The site, on municipal land near Bram Fischer Drive and Selkirk Avenue, was intended to provide affordable rental accommodation for working households close to employment opportunities in Randburg rather than on the urban fringe. The development was planned in phases, with a first phase of 145 units forming part of a broader 558-unit scheme.

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Despite being approved more than 15 years ago, the project spent most of its life on paper. Feasibility studies, redesigns, funding shortfalls, and procurement processes kept it in Joshco’s capital programme without any visible construction. A contract was eventually awarded in April 2025, and the site was handed over to the contractor in September that year. However, meeting notes indicate that when the site was handed over, construction drawings were still missing and enrolment with the National Home Builders Registration Council was incomplete.

Payments of approximately R20m were made before vertical construction began in December 2025, with Joshco attributing these costs to professional services and bulk earthworks. The project then became the subject of a Hawks investigation in March 2026, following whistleblower disclosures alleging discrepancies between expenditure and visible progress. Two senior Joshco executives were suspended the same month, with reports citing non-cooperation with investigators and tender irregularities.

In April 2026, Joshco announced that pylon work had resumed, and described the restart as part of the organisation’s turnaround strategy. That progress, however, proved short-lived. By May 2026 the contractor had suspended operations, citing financial uncertainty and missing paperwork.

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Meeting notes from the oversight visit reveal that Joshco’s budget for the project was cut by R66m. Approximately R10m in outstanding invoices cannot currently be paid under the existing budget, and it remains unclear whether funding will be available in the new budget cycle to settle those amounts. The project is currently at 12% completion, a figure described as far behind schedule. Joshco acknowledged that the stoppage of the contract would result in further costs to the organisation. The project is currently overspent by R600 000.

Campbell-Cloete said she had requested a full update on the project status and asked Joshco to schedule a community meeting by July 10. She said residents and the ward would be kept informed as more information became available.

Joshco has stated that it is working to source alternative funding for the project, and that it is co-operating with the Hawks investigation. No court has made any findings of wrongdoing against any individuals at this stage.