Dear Editor
The Democratic Alliance (DA) is deeply alarmed by the consistent pattern of delays, cost overruns, and governance failures reported in the Development Bank of Southern Africa’s (DBSA) update to the Portfolio Committee on Tourism. Despite R788 million spent and a project pipeline stretching across all nine provinces, the evidence shows that South Africans are not getting value for money.
Every single one of the 10 tourism infrastructure projects currently under construction is behind schedule. Sites like Royal Khalanga Lodge are nearly two years overdue, while the Vredefort Dome project has had not one, but two contractors terminated. To make matters worse, DBSA continues to recycle the same project managers. Penalties for delays appear ineffective, and cost overruns are staggering. The Oaks Lodge project in Limpopo has reached 183% of its original budget, with no clear accountability.
The DA calls for a temporary halt on new DBSA-managed tourism infrastructure projects until existing issues are addressed, audits are complete, and feasibility plans are in place:
- Completion and audit of all delayed or over-budget projects, including forensic investigations into those exceeding 50% cost escalation;
- Clear and up-to-date feasibility studies must be conducted for all future projects — particularly ones like the Cradock Four Garden and Platfontein Lodge, where there’s no sign of a plan to keep the sites running once built; and
- Public-private partnerships (PPPs) must be prioritised, not neglected. The total lack of private-sector involvement, despite R62 million earmarked for projects like the Mafikeng Hotel School, threatens long-term viability and innovation.
The DBSA’s presentation confirmed what the DA has long warned: the Bank is managing billions of rands with insufficient project and contract oversight, minimal intergovernmental coordination, and poor compliance with green building and universal accessibility policies. Why are so many completed projects not operational, not revenue-generating, and still disconnected from basic services like water and electricity?
The DBSA is contracted directly by the Department of Tourism and resides under Treasury.
South Africans deserve well-managed, sustainable, community-owned tourism infrastructure — not ghost lodges, stalled museums, or vanity projects with no long-term benefit.
Regards
Haseena Ismail MP
DA Spokesperson on Tourism