The Matlosana Catalytic Project in the North West is on the brink of collapse as the contractor and government are at loggerheads over payments and the cancellation of the contract.

The North West Department of Human Settlements is defending the stalled Matlosana N12 Catalytic Project, pushing back against mounting criticism while attempting to shift responsibility for the housing crisis onto contractors, municipal failures and national budget cuts.

The response follows widespread outrage after revelations that the ambitious R4.2 billion housing development in Ward 15, Matlosana, had descended into years of delays, incomplete structures and broken promises, leaving thousands of residents still waiting for homes promised as far back as 2023.

In a lengthy media statement issued on Thursday, the department said it wanted to “set the record straight” regarding claims surrounding the controversial project. But rather than accepting direct responsibility for the collapse in delivery, the statement repeatedly shifted blame to contractor MXN Development Construction, the Matlosana Local Municipality, and broader funding pressures within the national human settlements sector.

“The North West Department of Human Settlements has noted with concern the article published on IOL and wishes to set the record straight regarding the claims made therein,” the department said.