A R127m housing development intended to accommodate 530 families in Port Alfred is under threat from an alleged land invasion, prompting the council to consider legal action against people occupying land near the construction site.
The Thornhill development is intended to relocate residents from informal settlements, including New Field, Potyopayi and Cricket Field, who have waited years for formal housing.
Ndlambe municipality has resolved to verify occupants against official housing beneficiary lists, strengthen security and seek police assistance to prevent further occupation.
It has also authorised the municipal manager to approach the courts for an interim interdict and eviction order against unlawful occupiers.
A land invasion task team will be established to develop strategies to protect housing development sites across the municipality.
The council fears the occupation could disrupt construction and delay the project's completion.
However, Thornhill resident Bongani Mbonambi said frustration over delays and a lack of transparency about housing allocations had contributed to the occupation.
He alleged that some residents who had registered for housing as far back as 1994 were being overlooked in favour of applicants born in 2000.
Mbonambi said work on sewer pipelines, which began last year, had reportedly been delayed by seven months, with little explanation from the municipality.
He said some frustrated residents had erected structures on land adjacent to the development site because they believed it was not being used.
Mbonambi said more than 800 households needed housing, but only 530 units were planned, leaving residents uncertain about who would qualify.
"People in Newrest believe the municipality is not being honest with them.
"You can't install electricity in an informal settlement and then leave that place.
"The number of houses that will be built is 530, but there are more than 800 people in need of housing.
"Who will not benefit? People are really frustrated.
"It is not that those people will not leave that place. They just need assurance from the municipality that they will be given houses," he said.
He called for direct engagement with affected communities rather than communication through social media.
"The municipality must go to the people and not write on social media," Mbonambi said.
Provincial human settlements spokesperson Yanga Funani confirmed that the department had appointed Ndlambe Municipality as the implementing agent for the development.
The municipality had subsequently appointed a contractor to install water and sanitation networks, roads and stormwater infrastructure.
Funani said the department had approved R45m for the current infrastructure phase, while the overall development was expected to cost R127m.
Construction of the houses themselves was scheduled to begin in the 2027/28 financial year.
"This phase is estimated to be completed by the end of January 2027.
"The department remains committed to working with the municipality to facilitate the implementation of the project in line with the approved plans and applicable processes," he said.
Ndlambe municipality had not responded to questions from the Daily Dispatch by publication.
The dispute follows a similar case in neighbouring Ngqushwa municipality, which obtained an urgent interdict from the Makhanda high court in August against an alleged attempt to occupy municipal land in Peddie.
The municipality said a group had planned to subdivide Erf 93, a commonage near the town's CBD, into about 500 residential plots under the name eBuyelembo New Village.
Ngqushwa municipality warned that the proposed settlement lacked essential infrastructure and would place additional pressure on municipal services.
Municipal manager Ndoda Mgengo linked the attempted occupation to political frustrations ahead of the 2026 local government elections.
