A construction company has secured a court order to attach assets worth R470m from the department of human settlements for more than a decade of “systematic underpayment for subsidised housing projects in Mpumalanga”.
XJR Construction, which has built thousands of RDP houses since 2014, says it was paid R103,000 a house instead of the proclaimed subsidy quantum of R164,000, resulting in substantial losses over the last decade.
It claims the provincial department was in turn being paid the full subsidy by the national department.
The writ of execution was granted against Mpumalanga human settlements MEC Speedy Mashilo and human settlements minister Thembi Simelane in the Mpumalanga High Court on Monday.
Despite ignoring summons on numerous occasions over the past three years, the department has now filed an urgent application to have the judgment rescinded and halt the attachment. It claims building costs vary between provinces. The matter is scheduled to be heard on Tuesday.
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