The Star News

eThekwini's R49.6 million budget shift raises concerns for Durban's low-cost housing

Zainul Dawood|Published

New houses are being constructed in Cornubia, north of Durban.

Image: Supplied

Urgent concerns were raised this week regarding the potential fallout from a recent decision to reprioritise R49.6 million in funding and the repercussions it would have on low-cost housing in Durban

These concerns were raised by Cornubia ward councillor Rory Macpherson at the eThekwini council meeting on Wednesday where some councillors approved the reprioritisation of the funding in the financial year 2025/2026 from the development of Cornubia Town Centre project to the Ntshongweni- Westown Square development project.

The money is expected to provide funding to cover the cost of the outstanding work due to delays encountered. The municipality allocated R600 million towards the required municipal infrastructure in March 2022 while the developer contributed R139 million. Westown Square was opened in March 2025. 

The municipality stated that it had spent R547 million out of the R600 million as at June 2025. A report to council from the Economic Development and Planning Committee stated: "This reflects an excellent achievement in maintaining capital expenditure despite the challenges experienced due to excessive rainfall and other environmental realities. The municipality is already collecting rates and utilities revenue of R3.6 million per month.”

However, developers stated they experienced several challenges over 36 months leading to delays in the completion of work packages beyond June 2025. These challenges include:

  • Weather conditions
  • Identification of existing services
  • Delay in the relocation of services due to inaccurate Geographic Information System (GIS) data
  • Design adjustments for Kassier Road
  • Poor quality of the infill material on site with a high moisture content. 

This resulted in the need for additional work to be undertaken to improve the quality of the material. The planning committee said infrastructure packages in respect of the Cornubia project from which the budget was identified was reviewed. 

Macpherson, a ward 102  DA councillor, said the funds were moved from the Cornubia Presidential catalytic project which is about 15 years behind schedule. He said that Cornubia should be the fastest growing ratepaying opportunity in eThekwini.

He said it has the potential to clear a major informal settlement. He said that the municipality should be ploughing additional money into Cornubia. 

“We have learnt the hard way that when funds are moved from one project to another, those funds never ever find their way back. The infrastructure backlog is staggering. We still don't have a complete public transport system, incomplete road infrastructure, no taxi holding facilities, and an undersupply of water.

"The water supply from the tower is six months behind schedule with no end in sight and all sorts of major electrical components needed,” Macpherson stated.

Heinz De Boer, ward 36 DA councillor, said there was a lack of planning which is affecting all municipal wards.  

“If the city manager Musa Mbhele cannot get his executives to plan properly from the beginning then he must be held accountable for what his executives are doing. Council as an oversight body of this municipality must now bring it to the attention of everybody that if there is a lack of planning we have people, thousands of people who lack basic services and if the officials cannot get it right then the buck stops at the city manager's office,” he said.  

Mbhele denied that there was a lack of planning and clarified that the developer in Cornubia was supposed to conduct infrastructure development as per agreement as opposed to the municipality funding it.

With regard to Ntshongweni- Westown Square, Mbhele said, engineers and city officials analysed the developers motivation and felt it was reasonable. Mbhele said that an “extra ordinary amount of rainfall” delayed the project. 

“Residents of the west are complaining that they are spending so much time on the road during peak hours. We allocated the money where it was urgently needed as opposed to waiting for phase 2 to begin. That in my understanding is critical thinking,” he said. 

[email protected]