Corruption Stalls Mahikeng R54m Housing Project Amid Land Sale Scandal

Corruption Stalls Mahikeng R54 Million Housing Project

A R54 million housing project in Mahikeng, North West, has been left abandoned for more than a decade, leaving frustrated residents without much-needed shelter. The Marang Estate project, which began in 2013, now stands vandalised and dilapidated as it becomes the subject of ongoing corruption investigations.

The housing development was initiated as a partnership between the Department of Human Settlements, the Social Housing Regulatory Authority (SHRA), and the Mahikeng Local Municipality. Construction began in 2014 but was halted after allegations of irregularities emerged. The Special Investigating Unit (SIU) was brought in, and the matter is currently before the courts.

The North West Department of Human Settlements confirmed that it had contributed to the project, emphasising the original goal of creating sustainable housing. However, the department now says it must wait for the legal process to conclude before any further steps can be taken.

Compounding the delays, the Home Building Registration Council halted construction in 2024 due to non-compliance with safety requirements. The provincial department has since expressed its intention to revive the project, but officials say a new forensic audit is necessary before any rebuilding can begin, given the deterioration of the structures over time.

Over the years, multiple state agencies have probed the failed project. Seven people have been arrested following a Hawks investigation into the illegal sale of municipal land worth more than R144 million. Among the accused is former Mahikeng municipal manager, Hennie Smith, along with six others. They face charges of fraud, corruption, money laundering, contravention of the Municipal Finance Management Act, and theft.

The trial is scheduled to begin on 8 December 2025, with all accused currently out on bail.