R1.3bn Limpopo student housing in limbo

An ambitious R1.3bn student housing precinct at the University of Limpopo, designed to provide nearly 3,000 beds through a public-private partnership with the Public Investment Corporation (PIC), remains locked at 98% completion. The project has stalled due to a bitter legal dispute in the high court in Pretoria, leaving state pension funds exposed, thousands of students without secure accommodation, and resulting in more than R100m in lost revenue.

The crisis intensified when private developer K-SL Student Hotel filed an urgent application against the PIC to release more than R44m in overdue payment certificates and professional fees. K-SL director Gregory Mofokeng warned that failing to settle these amounts threatens contract cancellation by primary builder Raubex and major consulting firms, which would trigger millions more in wasted demobilisation and re-appointment expenses.

Delays initially cascaded after Eskom missed a June 2025 deadline to complete critical electrical grid upgrades in the Mankweng area, forcing site operations into technical suspension by September. A subsequent variation order requested R90.5m to cover delay claims, price escalations, and safety additions, pushing the total project budget up by 21% to R1.36bn and sparking an impasse over fiduciary governance.

While K-SL accuses PIC officials of abusing their voting majority to starve the project of capital, PIC head of properties Malusi Mthuli defended the refusal as responsible stewardship under the Public Finance Management Act. Mthuli maintained that releasing unverified funds without proper legal sign-offs or quantified internal rate of return impacts would breach statutory duties and expose public funds to unwarranted risks.