DV relocation put on ice for now
PLANS to relocate hundreds of families from Duncan Village informal settlements to serviced sites in Reeston have been put on hold.
This is because Buffalo City Metro and Asla Construction have resolved to now negotiate an out-of-court settlement in their legal battle.
City manager Andile Sihlahla recently requested the council to allow negotiations between the city and Asla to conclude regarding the possible “out-of-court settlement” in connection with the multimillion-rand Reeston housing project Phase 3, stage 2.
The two parties were embroiled in a court battle over the appointment of Asla Construction for a R74-million housing project in Reeston.
The appointment led to former city manager Andile Fani’s suspension and ultimately his dismissal this year after he was accused of breaching the Municipal Finance Management Act when he appointed Asla to build houses in Reeston.
The Grahamstown High Court declared the awarding of the contract as unlawful and set it aside.
Asla appealed and through the appeal the Supreme Court of Appeal ruled in favour of Asla earlier this year.
SCA judge Kevin Swain found the high court had erred in its ruling.
Sihlahla said in the report tabled before council recently: “BCM has considered the option of taking the matter to the Constitutional Court,” adding that both parties were willing to negotiate a settlement without prejudice.
“Since relocation to Reeston Phase 3 stage 2 services sites comes with the costs to council of building temporary units at the estimated cost of R9.5million for 951 households, it will be best to allow the negotiation with Asla Construction to proceed and reach a final conclusion first.”
He said when both parties had managed to reach a solution, construction of RDP houses would proceed subject to funding approval by the provincial department of human settlements.
“When the settlement has been reached the cost of building temporary structures will not be necessary, formal houses will be built and beneficiaries will be relocated from the shack to the complete houses.
“The office of the city manager is making a special request to the council to allow parties to finalise the negotiation and report the outcome back to council,” Sihlahla said.
While the negotiations take place, the provincial human settlements department will also be kept informed of the negotiation proceedings and be requested to reserve funding “in consideration of possible resolution on the matter”.
Mayor Xola Pakati said in council that while he supported the recommendations the concern of land invasion remained.