North West to demolish 40 unfinished houses after decade-long project stalled

The North West department of human settlements has begun demolishing 40 incomplete houses in Tshunyane village after a housing project that began in 2010 stalled and remained unfinished for more than a decade.

Project history and contracts

The project dates to 8 September 2010, when the department entered into agreements with two contractors, Glowing Sunset Trading 38 and Marang Distributors, to build about 250 houses in villages within the Mahikeng local municipality.

Tshunyane village was allocated housing units between the two contractors: 34 units for Glowing Sunset Trading 38 and six units for Marang Distributors.

Work stopped and payments made

According to the department, Glowing Sunset Trading 38 stopped working in March 2015 and Marang Distributors abandoned its site in June 2015. The department said it paid each contractor only for work completed: R8.4 million to Glowing Sunset Trading 38 and R3.6 million to Marang Distributors, amounts that included work done in Tshunyane village.

Structural assessments and demolition decision

The National Home Builders Registration Council (NHBRC), acting on instructions from the department, carried out structural integrity assessments of the incomplete houses and blocked the housing projects, including those in Tshunyane.

The NHBRC found structural defects and deterioration caused by prolonged exposure of construction materials to adverse weather conditions, and recommended that all exposed foundations and wall plates be demolished.

Restarting the project

The department appointed a new contractor in January 2026 to demolish and rebuild the 40 housing units in Tshunyane. Demolition has begun and the new contractor has started laying foundations for the replacement houses.

Accountability and safeguards

When asked whether the original companies had faced penalties, damages claims, recovery proceedings or blacklisting, the department said it was seeking legal advice. The department stated that contractors were terminated when they failed to perform or deliver work to the required standard, while some voluntarily surrendered projects.

The department said it has introduced measures to help prevent another stalled project, including involving the community, traditional leaders and the Mahikeng municipality in the renewed project.

Spokesperson statement

“The department only paid for the milestones completed,” said spokesperson Dineo Thapelo.