The multimillion-rand Mdantsane Urban Hub development scheduled to start in April has suffered a setback with the National Treasury’s recall of an approved R19.3-million it had allocated for the development.
The precinct plan, which was met with mixed reactions last year, was allocated R20-million by Finance Minister Pravin Gordhan’s office under the neighbourhood development partnership grant (NDPG).
During a stakeholders’ engagement session last year, BCM promised residents the development would include:
lThe construction of a boxing museum;
lNew higher density social housing and mixed uses on strategic sites and opening up access bottlenecks;
lExpansion and consolidation of the existing economic heart of the Highway central business district through the creation of new anchors and facilities;
lEnhancing existing streets and creating new tree-lined streets and spaces; creating prominent and pedestrian-friendly gateways into the CBD; and
lCreating a network of well-connected streets and spaces throughout the CBD.
Acting head of the department for municipal services Neo Moerane announced that the meat hawkers would be the first to be removed from the busy Sandile Road as work was scheduled to start “soon”.
However, during the mid-year adjustment budget presentation BCM mayor Xola Pakati said: “The funding has been taken off the budget as National Treasury is not approving the allocation due to late of the city’s precinct plan.”
Asked why BCM had failed to submit the precinct plan on time, metro spokesman Sibusiso Cindi said: “The planning for the Mdantsane Hub was quite lengthy for various reasons ... after the plans, a survey was followed by extensive interactions with various roleplayers.
“Though there are still outstanding issues such as land issues, as the owners still cannot be traced, it was already late to follow the normal procurement processes and hence this was a voluntary surrender whilst following all these other processes.”
He said BCM had reached an agreement with National Treasury about the process to be followed in order to have the “same allocation in the next financial year”.
ANC councillor Luleka Simon-Ndzele said officials needed to answer why the money was not spent.
“We were voted for by the people here. There is also a council resolution that we should go to the community and tell the people that development is coming in Mdantsane and Dimbaza. In the adjustment, they are stating that National Treasury did not agree with the funding because we have failed to submit the city precinct plan and we want clarity on that,” she said.
DA councillor Jan Smit accused the metro officials of negligence. “It was no surprise that they had to submit the plan to National Treasury – they know that the office is strict with deadlines. This has been going back and forth for a long time now and that is a concern,” Smit said.
Councillor Chumani Matiwane of the EFF said: “These delays just show the level of seriousness about this project. They publicised to the residents that development was coming but management now takes time to submit things.” — mamelag@dispatch.co.za