Most of the municipalities were still not providing relevant documents for audit purposes, thus resulted to qualified audit report for three consecutive financial years. In Potchefstroom and Swartruggens, houses were sinking due to dolomite. That was due to failure of municipalities to conduct proper geotechnical studies. Incomplete houses in most areas of the province were due to the failure of contractors, contactors disappearing with money and inferior workmanship. Some of the contractors' contracts were terminated and appointed credible contractors. Some houses were allocated in 2002, but still not completed. The conditional grant was used for the rebuilding of old houses instead of building new houses. The MEC informed the delegation that the challenges of service delivery required a concerted collaborative effort from all stakeholders.