Millionaire former Durban metro policeman Wiseman S'bu Mpisane's wife, Shauwn, who landed a R300 million housing contract to build low-income houses on 4 500 sites in Umlazi, should not have been allowed to build one house because her company is not registered with the National Home Builders Registration Council (NHBRC).
This is the latest and possibly most damaging piece of information to emerge in a week where the Mpisanes were forced to stop work on the housing sites because they claim money from the eThekwini Municipality had dried up.
The council has denied this.
According to council spokesperson Beatrice Motsisi, "Zikhulise Cleaning and Maint & Trans CC was registered with the NHBRC, but their registration expired in May 2007."
On the council website Zikhulise's status is listed as expired and there are only records of two houses being built by the company legally, with the last in 2006.
According to the council, builders who fail to register may be found guilty of an offence in terms of Section 21 of the Housing Consumer Protection Measures Act and may be liable for a fine of up to R25 000 and/or a one-year prison sentence on each charge.
If the letter of the law is followed and the Zikhulise company is charged for every house, they could be fined up to R112.5m - that is if they built on all 4 500 sites that were allocated to them for the project.
This week Saturday Star visited the Umlazi sites where the houses are being built.
Shortly before arrival the front wall of one of the houses collapsed. Several of the houses have seepage as a result of leaking roofs. In some of the double-storey houses the water leaks through the floor of the second floor into the lounge.
Residents were fuming, saying the houses were dangerous.
The Mpisanes live in a plush, white La Lucia mansion with another adjoining converted house. Exotic cars reportedly worth R100m are in garages on the property. Armed guards patrol outside.
The house is reportedly worth about R15m, but the latest municipal valuation roll has the house valued at R7.5m.
Meanwhile, the houses built by Mpisane have not been plastered, some don't have toilets and the floors are uneven.
Children living in the houses said they used the portable toilets which were set up for the construction workers because there were no toilets installed in their houses.
Some of houses were built on the edge of steep banks and large portions of foundations were visible. Heavy rains have eroded the banks and several of the houses are in danger of falling down the banks.
Local councillors, who have been fielding complaints about the houses, were told by the ANC not to speak to the media.
Residents are fearful of the Mpisanes and were reluctant to give their names when they told us of the problems.
One resident said he felt it was unfair that they (Mpisane) "were living in a mansion and we are living in the mud".
Motsisi said every new house constructed must be inspected. "The project in question was not enrolled with the NHBRC, therefore no inspections were carried out.
Dominic Ntsele, a spokesman for the Mpisanes and Zikhulise, said they had intended to respond to the queries about the status of the housing project but withheld the response at the last minute.
"There is a plan for a press conference and a field visit next week," he said.
eThekwini City Manager Michael Sutcliffe earlier this week said the city had paid an estimated R300 million to the company for work done and certified.
This week Saturday Star asked Sutcliffe how the company could have been paid for work which was done and how could it have been certified by relevant professionals when the company was not even registered with NHBRC as a builder.