Gugulethu housing project delayed by extortion rackets

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20-02-2025
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Ground Up
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Over 570 houses “on hold” in Cape Town

Extortion rackets and threats of violence are disrupting several housing projects in Cape Town.

The Western Cape government says it has been forced to put on hold 571 homes.
Meanwhile, backyarders hoping to benefit have been occupying a community hall near the Luyolo Housing Development project since 2018.

Extortion rackets and threats of violence have slowed or stopped several construction projects across Cape Town, depriving hundreds of families of housing opportunities.

According to the Western Cape Department of Infrastructure, there have been disruptions in construction due to violence and threats made during extortion-related incidents. Numerous construction workers have been the victims of shootings.

Melchior Botes, spokesperson for MEC Tertuis Simmers, said 571 housing opportunities for beneficiaries from Tambo Village, Gxagxa, Luyolo, New Rest, Lusaka, and backyard dwellers from Gugulethu and Manenberg, have been put “on hold”.

“Some of the threats occurred in the form of destruction of property and arson through the burning of site storage and security structures. These unlawful acts caused a significant delay in the project because the Department will not put its own employees and those of our appointed contractors/representatives at risk,” said Botes.

GroundUp reported in 2022 that the provincial government said the housing project would be completed in the 2023/24 financial year. But Botes says, “The recommencement of the project is set for early in the new financial year … dependent on whether there will be criminal behaviour delaying the project again. At current, if all goes according to plan it should be completed by the 2027/28 financial year.”

Botes said several other projects have been marred by threats, violence and extortion in the greater Airport Infills Project. This includes stand-alone, semi-detached and three-storey buildings, developed on multiple sites: Luyolo (Gugulethu), Gxagxa (Gugulethu), Tambo Village (Mannenberg), Lusaka Infills and New Rest.

“As a result of land invasion in New Rest and Lusaka Infills, the housing opportunities have been reduced from 729 to 571,” said Botes.

Meanwhile in Gugulethu, a group of about 40 backyarders from nine families have been occupying Luyolo Community Hall in NY126 since 2018, hoping to be included in the Luyolo Housing Development next door. They occupied the hall after flooding on the land they had occupied on the site for the development flooded.

The City says the occupation is illegal and “the facility was built for sport and recreation purposes in accordance with the needs of the broader community”.

Nomawethu Maki has lived for seven years in the hall, which she says is deteriorating. “You can see the roof has a hole. When it rains, we use tubs and old blankets for the leaking,” said Maki.

The occupiers of the hall are not guaranteed a place in the development as this will be determined by the City’s code and the waiting list, said Botes.