R100m housing fiasco - 470 houses are uninhabitable: "R100m housing fiasco
Only four houses make the grade
May 30, 2010 10:33 PM By SIPHO MASONDO
More than R100-million has been spent on two massive housing projects in North West - but there are only four low-cost government homes to show for the money."
On the outskirts of Vryburg, near the Northern Cape border, the provincial government spent more than R86-million on building 470 houses, but only four have been satisfactorily completed.
Three hundred of the houses are uninhabitable - their foundations and walls do not conform to specifications and building standards.
The remaining 166 houses are being checked.
Vryburg's town manager, George Mthimunye - sent to administer the town in July by Co-operative Governance Minister Sicelo Shiceka and North West human settlements MEC Desbo Mohono - has ordered that the defects be corrected.
Vryburg municipality is now partially administered by the provincial government
About 300km away in Meriting extensions 3 and 4, in Rustenburg, the government spent more than R28-million on 1930 low-cost houses. But they were so shoddily built that they will have to be demolished.
Mthimunye said: "The foundations [of the Vryburg houses] are faulty, some of them are half-built and some are built up to roof level. But most, if not all, have defects according to a report I got from our building inspector."
Mthimunye said Khasu Engineering, which was contracted to deliver 3000 houses by the end of July, is taking the municipality to court, claiming that R4.7-million is owed to it.
This, Mthimunye said, is despite the fact that he discovered that Khasu was "erroneously overpaid" by R27-million.
He said he had given the company an ultimatum to fix the 300 houses by December 15, but Khasu had refused.
"They say they will only correct the [defective] houses at the end of the project," he said.
This, Mthimunye said, was unlikely to happen as Khasu had not been on site since October, claiming there was no money left to continue with the project.
"It's a major headache for me. I will terminate the contract and get a new company, and see how many houses we can get from the remaining money.
"We will have to look for another contractor, which will demand more money. We are starting the project afresh, two years down the line," Mthimunye said.
A government house costs R55000 to build, according to the department of human settlements website.
Mthimunye said the contract with Khasu was flawed from the start because it was not put out to tender. It was awarded in 2007.
The company was awarded the contract by the former municipal administration, which allegedly flouted procurement procedures.
As a result, Mthimunye said, he asked the National Prosecuting Authority's special investigation unit to investigate.
But the Vryburg municipality's council is far from delighted that the investigation has begun.
"There is no support. In fact, I am a problem to the council itself. Last week, they took a resolution that we must pay [Khasu the R4.7-million it claims]. They said if I don't pay, I will be in defiance and I will be charged," he said.
At least one councillor has threatened to charge Mthimunye with insubordination if he does not pay Khasu speedily.
"I told her to do as she pleases because I won't pay."
When The Times approached Khasu general manager Christo van Niekerk, he refused to comment, saying the case was sub judice.
Meanwhile, in Rustenburg, "not a single house has been completed" by another housing contractor.
"Something went terribly wrong. Along the way the [Rustenburg] municipality realised that the work was not of good quality. They were stopped, and the contractor took them to court," said Mohono, who was not able to identify the contractor.
"All the 1930 structures and the foundations will have to be destroyed. We have huge problems with almost all housing projects. The municipality must try to recoup the money."
Henry Hartley, a DA councillor in Rustenburg, said the builder had been paid about R28-million of the R45-million contract for 1950 low-cost homes.
"It is unsafe for any human being to occupy those houses, whether completed or not.
"We will now need about R71-million to rectify all the houses. The whole thing will have to be redone," he said.
Human Settlements Minister Tokyo Sexwale last year said that it would cost R1.3-billion to rebuild houses that had been poorly built.
About 3000 of such houses were in North West and Eastern Cape
Question: How can any decent/reputable contractor ever compete with people like this? They are thieves
Showing posts with label poor quality. Show all posts
Showing posts with label poor quality. Show all posts
T Sexwale: Human Settlements Dept Budget Vote 2009/10
T Sexwale: Human Settlements Dept Budget Vote 2009/10
Thank you for the opportunity to present our Budget Vote, Number 26, and in so doing to share our programmes and plans.
This human settlements budget vote presentation is still defined as the housing budget vote in terms of the Medium Term Expenditure Framework (MTEF). It consists of three parts:* first, the concept of human settlements* second, the current housing situation* third, the consequential challenges of our new mandate
In understanding our approach, we need look no further than the Constitution of our own Republic, where the very first value referred to in the very first line of the first chapter is human dignity.
The concept of human settlements, which recognises the centrality of human dignity, may be a new one for many South Africans. Yet it has been part of the global developmental lexicon for many years, having been adopted at the United Nations' global Habitat summit in Vancouver, Canada, in 1976.
Again, it gained ground at another United Nations conference, the World Summit on Sustainable Development, held in Johannesburg in 2002. The concept was taken further at the 52nd National Conference of the ANC in Polokwane in 2007, where several resolutions committed the new government to the promotion of human settlements and the building of cohesive, sustainable and caring communities.
Ultimately, in both his State of the Nation address and his own Budget Vote, President Jacob Zuma formalised this concept with the establishment of the new Human Settlements Ministry. In doing so the President explained: "Housing is not just about building houses. It is also about transforming our residential areas and building communities with closer access to work and social amenities, including sports and recreation facilities."
Incidentally, the concept was also referred to by the last Housing Minister, Dr Lindiwe Sisulu, in the "Breaking New Ground" policy, outlining the need for a new human settlements plan with more appropriate designs. But what is the letter and spirit of this concept? This is actually contained in the Freedom Charter; a historical document adopted 54 years ago by the Congress of the People long before Vancouver, the World Summit or Polokwane. That Congress demanded: "There shall be houses, security and comfort for all!"
Clearly mindful of the consequences of apartheid social engineering, the Congress demanded that "all people should have the right to live where they choose, to be decently housed, and to bring up their families in comfort and security."
"Slums shall be demolished and new suburbs built where all shall have transport, roads, lighting, playing fields, crèches and social centres."
In this respect, our task in terms of Government's Medium Term Strategic Framework is clear: to restore humanity and dignity, to address spatial inequalities and to provide comfort and security for all.
This we shall achieve by planning and building human settlements in an integrated, coordinated and holistic way. These must be places where people can play, stay and pray. They should be green, landscaped communities, pleasant places, where people live, learn and have leisure.
To achieve all this requires a new approach, a paradigm shift beyond housing. It is about homes. It is not just about a change of name from housing to human settlements; it is about a change of mindset, taking us from a new concept to concrete reality.
The current situation
Let us briefly reflect on the work of the housing department as it stands.
Some of the key developments are the following:
* Expenditure on housing service delivery has increased from R4,8-billion in the 2004/05 financial year to R10,9 billion in the last financial year, increasing at an average rate of 23 percent.* Funds allocated to national pilot projects for this financial year include R400 million for the N2 Gateway, R120 million for Zanemvula Housing Project and R150 million for disaster relief in KwaZulu-Natal.* Nationally, over 570 housing projects have been approved and a housing grant of R12,4 billion has been allocated for this financial year. This is allocated for expenditure on the construction of 226 000 new housing units across all nine provinces.* In the first two months of this financial year that is, from 1 April to 31 May 2009, provincial housing departments have already reported delivery of more than 22 000 housing units.* This brings the number of subsidised homes delivered by government since 1994 to a total of 2,3 million, accommodating approximately 13 million people. * We are obviously also looking beyond the numbers, and are pleased to report that the homes being built at present are of a larger size and better quality, with more houses of 40 to 45 square metres being constructed.* Gradually, new housing projects are also beginning to take the shape and form of quality human settlements which enable people to live a better quality life.
Going forward, additional funds are being allocated to provide for large-scale upgrades of informal settlements and the alignment of the national housing grant with inflationary price increases.
Although the housing grant allocation has been increased over the 2009 MTEF period, we remind you once again that the previous studies by the department concluded that continuing with the current trend in the housing budget would lead to a funding shortfall of R102 billion in 2012 which could increase to R253 billion by 2016. This is of great concern.
Furthermore, we remain concerned about houses that are reportedly standing empty, especially in the light of the huge demand for housing of almost 2,1 million units. We have taken cognisance of the need for housing in urban pressure points around the country and are in the process of responding to this with alternative tenure options including affordable rental housing stock.
We have also strengthened our resolve to provide housing assistance to people living in shacks, who constitute the bulk of the housing backlog. Significant strides have been made towards identifying those informal settlements that can be upgraded in-situ with essential services, and work in this regard is progressing satisfactorily, as long as we successfully arrest the spread of informal settlements. We have mapped all these informal settlements countrywide, and this area will be receiving serious ongoing attention.
The rural housing programme remains a key housing intervention, and new initiatives are in the pipeline to accelerate the development of quality rural human settlements.
Let me now turn to the question of corruption. This remains a major challenge across the housing delivery environment. To ensure we identify and act against criminals, we have strengthened our partnership with the Special Investigations Unit (SIU) and taken stern action against offenders.
To date, a total of 772 public servants have been charged, of whom 554 have been convicted. More than 1 600 acknowledgments of debt have been signed in respect of non-qualifying government employees with a total value of R19,8 million and millions have already been collected by the SIU from non-qualifying illegal beneficiaries.
The department has signed a further Service Level Agreement with the SIU mandating them to investigate fraud, corruption and maladministration in low-income housing contracts. This is the focus for the current financial year, and will enable the department to understand the type of abuse giving rise to blocked projects and allow us to improve our systems and processes while getting rid of corrupt officials and contractors.
Much of this anti-corruption drive was spearheaded by the last Minister of Housing, and we commend her and Willie Hofmeyer's team in the SIU for their endeavours to clean up the system. We will remain seized with this endeavour.
The consequential challenges
Let us now come to the question of the consequential challenges of our new human settlements mandate.
From the outset, let me emphasise that ours is effectively a brand new Ministry with, for the first time, a brand new deputy minister, Honourable Zou Kota-Fredericks, and much of what we are undertaking in terms of human settlements is brand new.
In addition, all the provincial MECs are also new to their portfolios. They are nonetheless a dynamic team of men and women, with whom we have already held two highly successful meetings or lekgotla in less than a month in what we call MinMECs. These meetings have played an invaluable role in shaping our thinking as Team Human Settlements, together with the senior management team in the department, led by the Director-General, Itumeleng Kotsoane and our partners in the various housing institutions.
We all work together within the framework of the war on poverty that was reiterated by the President in his State of the Nation address, and which is already being waged under the leadership of the Deputy President, Mr Kgalema Motlanthe.
Internally, as the Ministry and the Department, we are examining the implications of the broader definition of human settlements in terms of our mandates, policies, procedures, programmes and capacity.
We are already well into a review of our Development Finance Institutions, the National Housing Finance Corporation, the Rural Housing Loan Fund and the National Urban Re-Construction and Housing Agency to enhance their developmental coverage and impact.
We also have several legislative proposals in the pipeline, to accelerate the achievement of the ideal of true human settlements for our people and strengthen the legal environment. These include:* Amendments to the Housing Act, to align it to the ethos and principles that underpin the creation of sustainable human settlements.* The Sectional Titles Management Bill, to deal with the management and administration of sectional titles schemes.* The Community Scheme Ombud Service legislation, to establish a dispute resolution mechanism for all community housing schemes.* In addition, the Land Use Management Bill is being piloted by the Department of Land Affairs.* At the same time, we will be tabling a new National Housing Code, which is required in terms of the Housing Act of 1997. The 2009 Code was approved by MinMEC in February of this year.
We will also explore what other legislative impediments and/or disharmonies exist in the development of human settlements and seek Parliament's support in resolving these. We must once and for all streamline legislation for the development of sustainable and integrated societies.
It must be clear by now that, much as we aim to address the housing needs of all South Africans, and build integrated communities, our chief focus is the needs of those South Africans who are on the receiving end of economic negativities, the poor, as well as the poorest of the poor where the former qualify for government subsidies, whilst the latter, who live in shantytowns, qualify for nothing.
Shantytowns exist throughout South Africa, where townships or "slaapdorpe" were built under apartheid far away from urban areas. This was taken to horrific extremes in many places, such as Ekangala, where people depart for the city of Tshwane as early as 04h00, spending hours on the road. Only Heaven knows what time such people had to get up to travel to work.
We are seized with our central focus: to ensure due care for human dignity. This means not only focusing on holistic and integrated planning, but also paying attention to the greening of communities and alternative energy sources such as solar and wind power and other environmentally-friendly technologies.
This government has made tremendous gains in breaking the housing backlog, and the number of new homes built is second only to China. But this must not mean that houses should be of poor standard, or that quality is compromised in the interest of chasing numbers.
Consequently, it is crucial that we work closely with the planning and monitoring ministries in the Presidency. In our department, we already have our own monitoring unit to assess the quality and quantity of new homes, as well as the National Home Builders' Registration Council, and we will be collaborating with the Presidency's monitoring unit to share our findings.
Together, we will obviously do more. This means maximum cooperation and coordination with other national departments, particularly those in the Social Protection and Community Development Cluster, as well as the Departments of Rural Development and Co-operative Governance.
Similarly, we will focus on heightening co-operative governance with provinces and municipalities to harmonise how national, provincial and local government can continue to work together. We will also work closely with the South African Local Government Association (Salga) and the South African National Civic Organisation (SANCO).
Increased interaction with local government will, for example, enable us to redress existing developmental gaps in more established communities where apartheid spatial planners deliberately neglected the need for community services and facilities. It is important that we avoid perpetuating the same apartheid spatial development strategies.
A golden thread running through all our initiatives is consultation, and community involvement for community development. We plan to work closely with communities, contractors, regulators, and other stakeholders. This consultation will continue to focus on issues such as planning and design, and ensuring that all those involved - from the largest contractor to the smallest are focused on quality, and that they follow the appropriate design models.
The corporate sector is a key partner in ensuring we meet our objectives. We will be engaging with captains of industry and high net-worth individuals towards consolidating new partnerships with the private sector, in recognition of the fact that working together we can do more. A consultative meeting will be held with business in the coming months to explore ways and means of addressing the dire situation of the unbanked and people who do not qualify for credit. It is well-known and appreciated that many corporate players are committed to social investment and responsibility, but our new engagement will be about going the extra mile, for the sake of our people. We trust and believe that they will come on board.
In the current situation, the global economic downturn is of fundamental and critical concern, as it negatively impacts on our endeavours now and in the foreseeable future. This situation is worsened by the current economic recession in the South African business cycle.
As one developed nation after another begins to limp out of the hospital of the global economic crisis, the sad truth is that emerging markets and developing countries such as our own are more likely to be left behind in intensive care -- without much care. This prompted the World Bank and the International Monetary Fund to issue a rare joint statement in April of this year warning that: "The global economy has deteriorated drastically. Developing countries face especially serious consequences as the financial economic crisis turns into a human and development calamity."
This does not paint a rosy picture. In revenue collection terms, this situation has had a serious effect on the fiscus - which could result in a decrease in budget allocations, with potentially harmful consequences for all departments in the future.
In our own sector, we are already feeling the impact of the recession on the property market, building materials, and access to housing finance. Many people have lost their jobs, or are in the process of losing their homes and household contents.
As this situation impacts on government's ability to spend its way out of the recession, the consequences will be felt within the very human settlements we strive to develop. On a broader level, an ongoing global slowdown in spending and investment is likely to impact on Government's ability to meet some of the targets set for the 2014 United Nations Millennium Development Goals.
The other global phenomenon we need to factor into our planning is that of urbanisation. The United Nations Habitat has pointed out that the 21st Century is in fact the Urban Century, when for the first time in history the world's population will live predominantly in cities. We must be prepared for this urban eventuality, and plan accordingly. Whilst there may be problems, we should also identify the opportunities.
There must be no equivocation that the 21st century must also be seen as the one in which South Africa must grow from being a developing country to a developed nation. There must be an active realisation that this is what our government is working towards as we develop human settlements.
We must not, of course, overlook the tremendous contribution that the development of human settlements makes, and will continue to make, to the South African economy. Government's efforts to address the housing backlog in the past year have, in addition to providing shelter to millions of South Africans, also provided work for more than 1,3 million people.
Every new home is an economic catalyst. Its construction stimulates the mining sector to explore for and mine more copper, iron ore, manganese, cobalt and other raw materials. Housing construction invigorates the manufacturing sector to produce more pipes, tiles, bricks, doors, taps, and windows and so on. It activates the retail sector to sell more furniture, appliances, carpets, curtains, white goods, kitchenware etc. The economic multiplier effect should never be underestimated.
Lastly, but most importantly, let me emphasise that we will require the support of Honourable Members of Parliament, as well as of the Portfolio Committee on Human Settlements in particular, if we are to succeed in our mission.
We have a long road to travel, and our people have great expectations. This Parliament has a vital role to play in ensuring that we meet those expectations.
Ultimately, our task is about social justice and economic democracy. The new homes that we are building within the context of human settlements are equivalent to a social wage. They are assets.
In this context, Parliament has a duty not only to hold this Ministry accountable for the development of human settlements and budgetary expenditure; it must also join us in educating beneficiaries on the importance of taking care of and maintaining these assets and the environment within which they are located.
In doing so, we are asking Parliament to echo our message in addressing the pervasive and negative entitlement mentality that exists among some individuals, who only see government as something that gives handouts. It is important for people to assume responsibility as well.
To conclude: as Team Human Settlements, we know the difficulties that confront us. We understand our mission. We foresee the challenges. It is not going to be an easy task, particularly given the current economic constraints. And we know we have to be extremely careful with every cent we spend after all, it is public money, contributed by South African taxpayers, both rich and poor.
We know and trust that we shall have the support of this House, both for our activities and for the expenditure that is outlined in our budget vote.
The commitment that we give in return is that as accountable political leadership, with the MECs and our management team, we will put our shoulders to the wheel on the basis of sound principles and good governance to ensure success, knowing quite well that this calls for hard work, diligence and serious commitment.
I thank you.
Thank you for the opportunity to present our Budget Vote, Number 26, and in so doing to share our programmes and plans.
This human settlements budget vote presentation is still defined as the housing budget vote in terms of the Medium Term Expenditure Framework (MTEF). It consists of three parts:* first, the concept of human settlements* second, the current housing situation* third, the consequential challenges of our new mandate
In understanding our approach, we need look no further than the Constitution of our own Republic, where the very first value referred to in the very first line of the first chapter is human dignity.
The concept of human settlements, which recognises the centrality of human dignity, may be a new one for many South Africans. Yet it has been part of the global developmental lexicon for many years, having been adopted at the United Nations' global Habitat summit in Vancouver, Canada, in 1976.
Again, it gained ground at another United Nations conference, the World Summit on Sustainable Development, held in Johannesburg in 2002. The concept was taken further at the 52nd National Conference of the ANC in Polokwane in 2007, where several resolutions committed the new government to the promotion of human settlements and the building of cohesive, sustainable and caring communities.
Ultimately, in both his State of the Nation address and his own Budget Vote, President Jacob Zuma formalised this concept with the establishment of the new Human Settlements Ministry. In doing so the President explained: "Housing is not just about building houses. It is also about transforming our residential areas and building communities with closer access to work and social amenities, including sports and recreation facilities."
Incidentally, the concept was also referred to by the last Housing Minister, Dr Lindiwe Sisulu, in the "Breaking New Ground" policy, outlining the need for a new human settlements plan with more appropriate designs. But what is the letter and spirit of this concept? This is actually contained in the Freedom Charter; a historical document adopted 54 years ago by the Congress of the People long before Vancouver, the World Summit or Polokwane. That Congress demanded: "There shall be houses, security and comfort for all!"
Clearly mindful of the consequences of apartheid social engineering, the Congress demanded that "all people should have the right to live where they choose, to be decently housed, and to bring up their families in comfort and security."
"Slums shall be demolished and new suburbs built where all shall have transport, roads, lighting, playing fields, crèches and social centres."
In this respect, our task in terms of Government's Medium Term Strategic Framework is clear: to restore humanity and dignity, to address spatial inequalities and to provide comfort and security for all.
This we shall achieve by planning and building human settlements in an integrated, coordinated and holistic way. These must be places where people can play, stay and pray. They should be green, landscaped communities, pleasant places, where people live, learn and have leisure.
To achieve all this requires a new approach, a paradigm shift beyond housing. It is about homes. It is not just about a change of name from housing to human settlements; it is about a change of mindset, taking us from a new concept to concrete reality.
The current situation
Let us briefly reflect on the work of the housing department as it stands.
Some of the key developments are the following:
* Expenditure on housing service delivery has increased from R4,8-billion in the 2004/05 financial year to R10,9 billion in the last financial year, increasing at an average rate of 23 percent.* Funds allocated to national pilot projects for this financial year include R400 million for the N2 Gateway, R120 million for Zanemvula Housing Project and R150 million for disaster relief in KwaZulu-Natal.* Nationally, over 570 housing projects have been approved and a housing grant of R12,4 billion has been allocated for this financial year. This is allocated for expenditure on the construction of 226 000 new housing units across all nine provinces.* In the first two months of this financial year that is, from 1 April to 31 May 2009, provincial housing departments have already reported delivery of more than 22 000 housing units.* This brings the number of subsidised homes delivered by government since 1994 to a total of 2,3 million, accommodating approximately 13 million people. * We are obviously also looking beyond the numbers, and are pleased to report that the homes being built at present are of a larger size and better quality, with more houses of 40 to 45 square metres being constructed.* Gradually, new housing projects are also beginning to take the shape and form of quality human settlements which enable people to live a better quality life.
Going forward, additional funds are being allocated to provide for large-scale upgrades of informal settlements and the alignment of the national housing grant with inflationary price increases.
Although the housing grant allocation has been increased over the 2009 MTEF period, we remind you once again that the previous studies by the department concluded that continuing with the current trend in the housing budget would lead to a funding shortfall of R102 billion in 2012 which could increase to R253 billion by 2016. This is of great concern.
Furthermore, we remain concerned about houses that are reportedly standing empty, especially in the light of the huge demand for housing of almost 2,1 million units. We have taken cognisance of the need for housing in urban pressure points around the country and are in the process of responding to this with alternative tenure options including affordable rental housing stock.
We have also strengthened our resolve to provide housing assistance to people living in shacks, who constitute the bulk of the housing backlog. Significant strides have been made towards identifying those informal settlements that can be upgraded in-situ with essential services, and work in this regard is progressing satisfactorily, as long as we successfully arrest the spread of informal settlements. We have mapped all these informal settlements countrywide, and this area will be receiving serious ongoing attention.
The rural housing programme remains a key housing intervention, and new initiatives are in the pipeline to accelerate the development of quality rural human settlements.
Let me now turn to the question of corruption. This remains a major challenge across the housing delivery environment. To ensure we identify and act against criminals, we have strengthened our partnership with the Special Investigations Unit (SIU) and taken stern action against offenders.
To date, a total of 772 public servants have been charged, of whom 554 have been convicted. More than 1 600 acknowledgments of debt have been signed in respect of non-qualifying government employees with a total value of R19,8 million and millions have already been collected by the SIU from non-qualifying illegal beneficiaries.
The department has signed a further Service Level Agreement with the SIU mandating them to investigate fraud, corruption and maladministration in low-income housing contracts. This is the focus for the current financial year, and will enable the department to understand the type of abuse giving rise to blocked projects and allow us to improve our systems and processes while getting rid of corrupt officials and contractors.
Much of this anti-corruption drive was spearheaded by the last Minister of Housing, and we commend her and Willie Hofmeyer's team in the SIU for their endeavours to clean up the system. We will remain seized with this endeavour.
The consequential challenges
Let us now come to the question of the consequential challenges of our new human settlements mandate.
From the outset, let me emphasise that ours is effectively a brand new Ministry with, for the first time, a brand new deputy minister, Honourable Zou Kota-Fredericks, and much of what we are undertaking in terms of human settlements is brand new.
In addition, all the provincial MECs are also new to their portfolios. They are nonetheless a dynamic team of men and women, with whom we have already held two highly successful meetings or lekgotla in less than a month in what we call MinMECs. These meetings have played an invaluable role in shaping our thinking as Team Human Settlements, together with the senior management team in the department, led by the Director-General, Itumeleng Kotsoane and our partners in the various housing institutions.
We all work together within the framework of the war on poverty that was reiterated by the President in his State of the Nation address, and which is already being waged under the leadership of the Deputy President, Mr Kgalema Motlanthe.
Internally, as the Ministry and the Department, we are examining the implications of the broader definition of human settlements in terms of our mandates, policies, procedures, programmes and capacity.
We are already well into a review of our Development Finance Institutions, the National Housing Finance Corporation, the Rural Housing Loan Fund and the National Urban Re-Construction and Housing Agency to enhance their developmental coverage and impact.
We also have several legislative proposals in the pipeline, to accelerate the achievement of the ideal of true human settlements for our people and strengthen the legal environment. These include:* Amendments to the Housing Act, to align it to the ethos and principles that underpin the creation of sustainable human settlements.* The Sectional Titles Management Bill, to deal with the management and administration of sectional titles schemes.* The Community Scheme Ombud Service legislation, to establish a dispute resolution mechanism for all community housing schemes.* In addition, the Land Use Management Bill is being piloted by the Department of Land Affairs.* At the same time, we will be tabling a new National Housing Code, which is required in terms of the Housing Act of 1997. The 2009 Code was approved by MinMEC in February of this year.
We will also explore what other legislative impediments and/or disharmonies exist in the development of human settlements and seek Parliament's support in resolving these. We must once and for all streamline legislation for the development of sustainable and integrated societies.
It must be clear by now that, much as we aim to address the housing needs of all South Africans, and build integrated communities, our chief focus is the needs of those South Africans who are on the receiving end of economic negativities, the poor, as well as the poorest of the poor where the former qualify for government subsidies, whilst the latter, who live in shantytowns, qualify for nothing.
Shantytowns exist throughout South Africa, where townships or "slaapdorpe" were built under apartheid far away from urban areas. This was taken to horrific extremes in many places, such as Ekangala, where people depart for the city of Tshwane as early as 04h00, spending hours on the road. Only Heaven knows what time such people had to get up to travel to work.
We are seized with our central focus: to ensure due care for human dignity. This means not only focusing on holistic and integrated planning, but also paying attention to the greening of communities and alternative energy sources such as solar and wind power and other environmentally-friendly technologies.
This government has made tremendous gains in breaking the housing backlog, and the number of new homes built is second only to China. But this must not mean that houses should be of poor standard, or that quality is compromised in the interest of chasing numbers.
Consequently, it is crucial that we work closely with the planning and monitoring ministries in the Presidency. In our department, we already have our own monitoring unit to assess the quality and quantity of new homes, as well as the National Home Builders' Registration Council, and we will be collaborating with the Presidency's monitoring unit to share our findings.
Together, we will obviously do more. This means maximum cooperation and coordination with other national departments, particularly those in the Social Protection and Community Development Cluster, as well as the Departments of Rural Development and Co-operative Governance.
Similarly, we will focus on heightening co-operative governance with provinces and municipalities to harmonise how national, provincial and local government can continue to work together. We will also work closely with the South African Local Government Association (Salga) and the South African National Civic Organisation (SANCO).
Increased interaction with local government will, for example, enable us to redress existing developmental gaps in more established communities where apartheid spatial planners deliberately neglected the need for community services and facilities. It is important that we avoid perpetuating the same apartheid spatial development strategies.
A golden thread running through all our initiatives is consultation, and community involvement for community development. We plan to work closely with communities, contractors, regulators, and other stakeholders. This consultation will continue to focus on issues such as planning and design, and ensuring that all those involved - from the largest contractor to the smallest are focused on quality, and that they follow the appropriate design models.
The corporate sector is a key partner in ensuring we meet our objectives. We will be engaging with captains of industry and high net-worth individuals towards consolidating new partnerships with the private sector, in recognition of the fact that working together we can do more. A consultative meeting will be held with business in the coming months to explore ways and means of addressing the dire situation of the unbanked and people who do not qualify for credit. It is well-known and appreciated that many corporate players are committed to social investment and responsibility, but our new engagement will be about going the extra mile, for the sake of our people. We trust and believe that they will come on board.
In the current situation, the global economic downturn is of fundamental and critical concern, as it negatively impacts on our endeavours now and in the foreseeable future. This situation is worsened by the current economic recession in the South African business cycle.
As one developed nation after another begins to limp out of the hospital of the global economic crisis, the sad truth is that emerging markets and developing countries such as our own are more likely to be left behind in intensive care -- without much care. This prompted the World Bank and the International Monetary Fund to issue a rare joint statement in April of this year warning that: "The global economy has deteriorated drastically. Developing countries face especially serious consequences as the financial economic crisis turns into a human and development calamity."
This does not paint a rosy picture. In revenue collection terms, this situation has had a serious effect on the fiscus - which could result in a decrease in budget allocations, with potentially harmful consequences for all departments in the future.
In our own sector, we are already feeling the impact of the recession on the property market, building materials, and access to housing finance. Many people have lost their jobs, or are in the process of losing their homes and household contents.
As this situation impacts on government's ability to spend its way out of the recession, the consequences will be felt within the very human settlements we strive to develop. On a broader level, an ongoing global slowdown in spending and investment is likely to impact on Government's ability to meet some of the targets set for the 2014 United Nations Millennium Development Goals.
The other global phenomenon we need to factor into our planning is that of urbanisation. The United Nations Habitat has pointed out that the 21st Century is in fact the Urban Century, when for the first time in history the world's population will live predominantly in cities. We must be prepared for this urban eventuality, and plan accordingly. Whilst there may be problems, we should also identify the opportunities.
There must be no equivocation that the 21st century must also be seen as the one in which South Africa must grow from being a developing country to a developed nation. There must be an active realisation that this is what our government is working towards as we develop human settlements.
We must not, of course, overlook the tremendous contribution that the development of human settlements makes, and will continue to make, to the South African economy. Government's efforts to address the housing backlog in the past year have, in addition to providing shelter to millions of South Africans, also provided work for more than 1,3 million people.
Every new home is an economic catalyst. Its construction stimulates the mining sector to explore for and mine more copper, iron ore, manganese, cobalt and other raw materials. Housing construction invigorates the manufacturing sector to produce more pipes, tiles, bricks, doors, taps, and windows and so on. It activates the retail sector to sell more furniture, appliances, carpets, curtains, white goods, kitchenware etc. The economic multiplier effect should never be underestimated.
Lastly, but most importantly, let me emphasise that we will require the support of Honourable Members of Parliament, as well as of the Portfolio Committee on Human Settlements in particular, if we are to succeed in our mission.
We have a long road to travel, and our people have great expectations. This Parliament has a vital role to play in ensuring that we meet those expectations.
Ultimately, our task is about social justice and economic democracy. The new homes that we are building within the context of human settlements are equivalent to a social wage. They are assets.
In this context, Parliament has a duty not only to hold this Ministry accountable for the development of human settlements and budgetary expenditure; it must also join us in educating beneficiaries on the importance of taking care of and maintaining these assets and the environment within which they are located.
In doing so, we are asking Parliament to echo our message in addressing the pervasive and negative entitlement mentality that exists among some individuals, who only see government as something that gives handouts. It is important for people to assume responsibility as well.
To conclude: as Team Human Settlements, we know the difficulties that confront us. We understand our mission. We foresee the challenges. It is not going to be an easy task, particularly given the current economic constraints. And we know we have to be extremely careful with every cent we spend after all, it is public money, contributed by South African taxpayers, both rich and poor.
We know and trust that we shall have the support of this House, both for our activities and for the expenditure that is outlined in our budget vote.
The commitment that we give in return is that as accountable political leadership, with the MECs and our management team, we will put our shoulders to the wheel on the basis of sound principles and good governance to ensure success, knowing quite well that this calls for hard work, diligence and serious commitment.
I thank you.
Municipality in for high jump over RDP housing conditions
PARLIAMENTARIANS were less than satisfied with the Nelson Mandela Bay Municipality when they found water leakage in Veeplaas during their oversight visit to RDP houses in Nelson Mandela Bay yesterday.Veeplaas resident Mkhuseli Siganga told them the water had been leaking for more than three weeks and they had alerted the municipality, but nothing had been done.
The chairman of the portfolio committee on human settlements, Nomhle Dambuza, said the municipality had to be accountable for the water leakage and she could not believe, given the water crisis, that it had not reacted immediately.
“We say there is not enough water in South Africa and our people live without water, yet our municipalities allow huge amounts of water to gush out in leakages without repairing them for weeks.”
The committee embarked on a week-long visit to Eastern Cape RDP houses and were in Port Elizabeth yesterday to assess the quality and quantity of houses delivered.
Areas which they visited with municipal and council officials included Matthew Goniwe, Kamvelihle, Veeplaas, Zanemvula in Despatch and Ramaphosa in Motherwell.
Dambuza said issues such as sanitation and water had to be rectified by the end of next year.
“The provincial Department of Housing is still using the old system of building houses where people do not have sanitation and water.”
Dambuza said progress had been slow and she had noticed problems with areas such as Matthew Goniwe still using the bucket system.
Matthew Goniwe resident Nokuzola Dlamini said: “We live without toilets and water. When I have to use the toilet I have to use a bucket then empty it on our grounds. This house that was built for us is not fit for human habitation.”
Dlamini lives with her husband and two children, aged five and eight, in a one-bedroom home.
“They (government officials) have come with promises so many times I no longer believe what they say.”
Siganga said: “We have had problems with our water supply for over six months and our living conditions are appalling because water leaks from the toilets to our front doors.”
Dambuza said: “People must be given water and proper sanitation.”
She said she would report to parliament the defects in the RDP housing system and ensure necessary steps were taken to hold the responsible municipal officials accountable.
Low cost housing - Bisho spends R360 million to fix broken homes
Daily Dispatch Online
2009/07/30
BHISHO is spending R360 million to fix nearly 20 000 broken homes in the province while the poor live in flimsy cardboard units and ghost towns emerge from the ruins of disastrous housing projects.
In some areas of the province communities have deserted formal housing settlements because the homes were so poorly built they cannot live in them any longer.
The number of homes having to be repaired is more than the total number of 19662 houses delivered in the 2006/2007 financial year.
While the provincial government tries to rein in its backlog of 800 000 RDP homes, a two-month investigation by the Dispatch has revealed how:
Homes were built in areas which people have long since left;
One project in Seymour became State-sponsored “holiday homes” for people who live in other cities and only return in December;
Residents in Burgersdorp were moved into cardboard houses when their RDP homes began falling to the ground, and were then asked to clean up the mess themselves;
One project of 600 homes in Tarkastad has been standing empty, while a waiting list to house people continues to grow;
Depopulation and inferior construction in places like Venterstad has led to the emergence of ghost towns; and
A community near Bhisho is still waiting after five years for electricity and water because the government refuses to provide the services until it has finished the housing project it started eight years ago.
The biggest victims in the province’s housing fiasco are among the most vulnerable in the population.
Like two pensioners, Loki Makeleni and Ngqukuse Nonxaza, who have been living in a flimsy cardboard home for seven months while their shoddy RDP house in Burgersdorp is repaired.
“The government doesn’t care about people who live here. We’re going to die in these houses. I’m just waiting for my coffin right now,” said the elderly Makeleni.
To rub salt into their wounds, the local Gariep Municipality wanted the same residents to clear the tons of rubble lining the streets – for free.
The problems in Burgersdorp are far from unique – in fact, all but one of eight housing projects visited by the Dispatch are being rebuilt .
In many cases inexperienced contractors have been blamed for the problems .
Two weeks ago Housing MEC Nombulelo Mabandla vowed to blacklist incompetent builders and recover funds from them where necessary.
But she said her department would never forsake emerging contractors and would do all they could to mentor them in future.
“ That is why we have developed a training programme for them, called the Emerging Contractors Development Programme,” she said.
Seymour and Venterstad are two examples where RDP homes have been deserted or remain unoccupied because there are no local jobs, or poor workmanship has made the buildings unsafe.
Yet the reverse has happened in Tarkastad, where more than 600 residents are on a waiting list to occupy low- cost homes in a nearby project that is standing empty.
Derek Luyt from the Public Service Accountability Monitor in Grahamstown said the department’s Service Delivery Charter and Service Delivery Plans for 2009 and 2010 highlight its pitfalls.
“Staff shortages and lack of sufficient skills have severely hampered the department in the past, and it will not be able to deliver sufficient houses of adequate quality unless it solves its human resources problems,” Luyt said.
Democratic Alliance spokesperson Pine Pienaar said the huge backlog, lack of monitoring and under-spending in the department was a direct result of the department’s inefficiency to fill critical posts in technical and finance departments. - By GCINA NTSALUBA. Pictures: THEO JEPTHA
2009/07/30
BHISHO is spending R360 million to fix nearly 20 000 broken homes in the province while the poor live in flimsy cardboard units and ghost towns emerge from the ruins of disastrous housing projects.
In some areas of the province communities have deserted formal housing settlements because the homes were so poorly built they cannot live in them any longer.
The number of homes having to be repaired is more than the total number of 19662 houses delivered in the 2006/2007 financial year.
While the provincial government tries to rein in its backlog of 800 000 RDP homes, a two-month investigation by the Dispatch has revealed how:
Homes were built in areas which people have long since left;
One project in Seymour became State-sponsored “holiday homes” for people who live in other cities and only return in December;
Residents in Burgersdorp were moved into cardboard houses when their RDP homes began falling to the ground, and were then asked to clean up the mess themselves;
One project of 600 homes in Tarkastad has been standing empty, while a waiting list to house people continues to grow;
Depopulation and inferior construction in places like Venterstad has led to the emergence of ghost towns; and
A community near Bhisho is still waiting after five years for electricity and water because the government refuses to provide the services until it has finished the housing project it started eight years ago.
The biggest victims in the province’s housing fiasco are among the most vulnerable in the population.
Like two pensioners, Loki Makeleni and Ngqukuse Nonxaza, who have been living in a flimsy cardboard home for seven months while their shoddy RDP house in Burgersdorp is repaired.
“The government doesn’t care about people who live here. We’re going to die in these houses. I’m just waiting for my coffin right now,” said the elderly Makeleni.
To rub salt into their wounds, the local Gariep Municipality wanted the same residents to clear the tons of rubble lining the streets – for free.
The problems in Burgersdorp are far from unique – in fact, all but one of eight housing projects visited by the Dispatch are being rebuilt .
In many cases inexperienced contractors have been blamed for the problems .
Two weeks ago Housing MEC Nombulelo Mabandla vowed to blacklist incompetent builders and recover funds from them where necessary.
But she said her department would never forsake emerging contractors and would do all they could to mentor them in future.
“ That is why we have developed a training programme for them, called the Emerging Contractors Development Programme,” she said.
Seymour and Venterstad are two examples where RDP homes have been deserted or remain unoccupied because there are no local jobs, or poor workmanship has made the buildings unsafe.
Yet the reverse has happened in Tarkastad, where more than 600 residents are on a waiting list to occupy low- cost homes in a nearby project that is standing empty.
Derek Luyt from the Public Service Accountability Monitor in Grahamstown said the department’s Service Delivery Charter and Service Delivery Plans for 2009 and 2010 highlight its pitfalls.
“Staff shortages and lack of sufficient skills have severely hampered the department in the past, and it will not be able to deliver sufficient houses of adequate quality unless it solves its human resources problems,” Luyt said.
Democratic Alliance spokesperson Pine Pienaar said the huge backlog, lack of monitoring and under-spending in the department was a direct result of the department’s inefficiency to fill critical posts in technical and finance departments. - By GCINA NTSALUBA. Pictures: THEO JEPTHA
Sexwale maps out a 'beyond housing' vision
Housing is not just about building houses. It is also about transforming our residential areas and building communities with closer access to work and social amenities, including sports and recreation facilities,” proclaimed President Jacob Zuma during his state-of-the-nation address.The concept of human settle- ments may be a new one for many South Africans, yet it has been part of the global developmental lexicon for many years, having been adopted at the United Nations Global Habitat Summit, in Vancouver, Canada, in 1976. It gained ground at another United Nations conference – the World Summit on Sustainable Development, held in Johannesburg, in 2002.The concept was taken up at the landmark fifty-second national conference of the African National Congress, in Polokwane, in 2007, where several resolutions committed the new government to the promotion of human settlements and the building of cohesive, sustainable and caring communities.Proponents argue that it harks back to the Freedom Charter appeal for “ houses, security and comfort for all” – the historical document adopted 54 years ago, at the Congress of the People, is now very much back in vogue within the governing party, with a number of its other tenets, including nationalisation, being redebated.Human Settlements Minister Tokyo Sexwale, who has returned to politics from years in business, has also seemingly embraced the Charter’s spirit, but has added some flesh to its bones. He told Parliament during his Budget Vote speech, last month, that slums must be demolished and new suburbs built where “all shall have transport, roads, lighting, playing fields, crèches and social centres”.“Our task in terms of government’s Medium-Term Strategic Framework is clear: to restore humanity and dignity, to address spatial inequalities and to provide comfort and security for all,” he added.This would be achieved through the planning and building of human settlements in an integrated, coordinated and holistic way. “These must be places where people can play, stay and pray. They should be green, landscaped communities and pleasant places where people live, learn and have leisure.”However, this, observers believe, requires a new approach, a shift “beyond housing”. And the change of name from ‘Housing’ to ‘Human Settlements’ is, therefore, meant to reflect this change of mindset.But, arguably, it is also going to require a change in resource allocation and an upscaling of the budget. Expenditure on housing service delivery has increased from R4,8-billion in the 2004/5 financial year to R10,9-billion in the last financial year, increasing at an average annual rate of 23%.Nationally, over 570 housing projects have been approved and a housing grant of R12,4-billion has been allocated for this financial year for expenditure on the construction of 226 000 housing units across all nine provinces.Although the housing grant allocation has been increased over the 2009 Medium-Term Expenditure Framework period, previous studies by the department concluded that continuing with the current trend in the housing budget would lead to a funding shortfall of R102-billion by 2012, which could increase to R253-billion by 2016, which is of great concern.“We remain concerned about houses that are reportedly standing empty, especially in the light of the huge demand for housing of almost 2,2- million units. We have taken cognisance of the need for housing in urban pressure points around the country and are in the process of responding to this with alter-native tenure options, including affordable rental housing stock,” Sexwale said.SOCIAL AND ECONOMIC AMENITIESBut how are these changes being perceived outside the department? In a telephone interview with Engineering News, Human Settlements Portfolio Committee chairperson Beauty Dambuza says that government is moving away from building houses to “building communities”.“Government is trying to inculcate the culture where the structure of the house built must include social and economic amenities,” assures Dambuza.She reiterates that, in reversing the spatial developmental plans created by the apartheid system, government has provided more than two-million houses. However, unintended consequences have arisen, as most of the settlements are far away from socioeconomic activity areas, owing to a number of challenges. This has contributed to placing people at the periphery because suitable and well-located land for human settlements is in the hands of the private sector.Dambuza says it is worth noting that, in 2004, government made a shift from the Reconstruction and Development Programme (RDP) because it focused too much on quantity rather than quality, owing to the housing demand. Indeed, many of the houses built from 1994 to 2004 have defects, with some estimating that the cost of fixing these will run into billions of rands.In response, a comprehensive plan for the provision of human settlements in an inte- grated, sustainable and qualitative manner was adopted. But, owing to insufficient resources and a lack of coordination between national and provincial priorities, government has fallen well short of its aims.“This term, the President has introduced the Planning Ministry and the National Planning Commission, which, we hope, will ensure that planning is done in a well-coordinated manner,” Dambuza says.But there is also no question that more resources will be required to achieve the department’s goals, given that the current top-structure subsidy does not cover the much-needed bulk infrastructure and that the Municipal Infrastructure Grant (MIG) is limited to specific programmes.“We agree that there has been a significant increase in our budget for the past five financial years; [however], because of increased demand, as a result of, besides others, population growth causing strain on the budget . . . we sit with a backlog of 2,2-million houses.”The portfolio committee has also consulted with the department to ensure that, this financial year, it deals with the issue of repairing the defects in some houses and the issue of blocked projects.Also envisaged is an economies-of-scale approach to improving the affordability of materials, while increasing the use of labour and crowding in skills development.POOR QUALITYReacting to reports that small contractors build substandard structures, Dambuza says that the committee’s view is that not all emerging contractors build poor-quality houses.“There are some who do that and that is totally unacceptable; however, we will give ourselves time to organise a summit and invite them to try to understand their challenges.“We are aware that some of the problems involve the bidding process, a lack of funding and the fact that there is no profit in affordable housing and that big developers [are not] interested in government-subsidised schemes. But we also need to recognise and encourage entrepreneurship, as we strongly believe that it is the primary driver of economic growth and development in any developing country, while a competitive developmental and transformed construction industry and related services that deliver value to society and complements programmes are initiated.”Dambuza concedes that government cannot act alone to solve all the human settlements challenges, but that it needs the private sector, nongovernmental organisations and financial institutions to assist in building houses.“We know that the private sector can provide credit for our people, but we have to ensure that we engage with financial institutions, particularly with respect to their high interest rates, which have ended up putting our people in huge debt.”She adds that a dynamic and enabling environment for investment is the basis for sustainable development and poverty alleviation.The human settlements programme promotes the development of communities with increased access to productive resources, public services and institutions, affordable transport, land and employment opportunities.“A human settlement is a labour-based infrastructure development that can make an important contribution to measures to [deal with] unemployment. The integrated infrastructure provision also assists in driving rural, urban and human settlement development, facilitated by an enhanced strategy for land acquisition, including the acquisition of strategically located and developed sites in urban households, as well as in rural areas, through the disposal of State-owned land . . . and the Housing Development Agency has been established to acquire land for human settlements.”BEYOND HOUSINGGeorgia Institute of Technology School of Civil and Environmental Engineering professor and visiting research and innovation chair at Tshwane University of Technology (TUT) Mulalo Doyoyo tells Engineering News that the change from ‘Housing’ to ‘Human Settlements’ is “appropriate because it is beyond housing and talks to a lot of other issues, such as job creation and the livelihood of the environment within which the houses are built”.Doyoyo argues that, to ensure that the name change is linked to delivery, one needs to guarantee the involvement of centres of excellence around the human settlements problem and to put together a team of experts in order to create more sustainable housing, besides taking advantage of renewable-energy sources and all types of innovative technologies. This scenario entails not just structures, but is also concerned with saving money and coming up with innovative ideas for waste treatment and water purification.He cites the top challenges for the Human Settlements Department as slashing the housing backlog; dealing with the poor quality of houses and the homogeneity of the buildings; thinking beyond structures by introducing technologies that can save money for the people; and finding the right experts in the built environment – including those at the Council for Scientific and Industrial Research and at all universities in the country – and assembling a team that will focus on technology for human settlements.Doyoyo explains that, in response to all these challenges, the Department of Science and Technology has donated R3,5-million as seed funding for the implementation of the initial phase of the Retecza Initiative, which will focus on human capital development.TUT is the leading university of technology in this initiative to alleviate poverty in the country.Retecza is an academia–industry–public initiative to tackle the problems of poverty and livelihood in South Africa through a vibrant culture of cutting-edge research, innovation and technology-concept development, leading to commercialisation within a paradigm of research demonstration and implementation.“We have created Retecza to build autonomous and sustainable villages for people, focusing on next-generation energy supply, green building and construction, as well as next-generation transportation and technology concept centres,” Doyoyo concludes.ECONOMIC STIMULIIn the last few years, especially since the introduction of the department’s Breaking New Ground strategy, there has been a shift away from viewing a subsidised house as an economic asset for the poor.“A house is an economic asset if it can be invested in, improved and sold in order for one to move up the housing ladder into better accommodation, or if the house serves as an asset [so that] its owner is able to borrow against it.However, leveraging or selling a home is often made impossible because formal transactions require the occupant to have an official title deed,” says PDG consultant Alison Hickey-Tshangana.She adds that one of the main issues is that, in the rush for housing service delivery since 1994 (with emphasis on quantity), many beneficiaries have not yet received title deeds, meaning that the house can only be sold informally and that its value as an economic asset is undermined.From the perspective of housing beneficiaries, municipalities can use subsidised housing developments as an economic stimulus, if they ensure that title deeds are promptly granted to beneficiaries.“A human settlement is an economic stimulus when two conditions are met. Firstly, the human settlement must integrate amenities, businesses and services, instead of simply installing rows of RDP homes. Secondly, in order to be an economic stimulus, municipalities must plan new human settlements in well-located areas, such as next to city centres or within fair reach of public transport. This enables residents to be linked to jobs, services and shops without spending large portions of their income on transport costs,” notes Hickey-Tshangana.The shift to human settlements may see an integration of bulk service delivery with housing delivery. To date, MIG has been administered by the former Department of Provincial and Local Government, with housing funding flowing to the provinces and onto municipalities through the former national Department of Housing.As a result, a number of municipalities were frustrated by the lack of alignment between these funding streams because there was an obvious link: without proper bulk infrastructure in place, a new housing project would not be approved. A municipality might have had the housing funds, but lacked the MIG funding to install the infrastructure, which had to precede the housing construction.“If the recent restructuring turns out to include a shift of the MIG to the Department of Human Settlements, then this could have a positive impact in terms of enabling these two funding streams to be better coordinated, thus reducing bottlenecks.”Hickey-Tshangana emphasises that the key is the coordination of funding streams and properly integrated planning, which require coordination across spheres.She remarks that one of the issues outside the metropolitan municipalities is that smaller municipalities are often starved of information from national and provincial departments about planned investments in their areas.“Municipalities must have the information on where schools, hospitals and police stations are planned, so that this can be incorporated in the Integrated Development Plan and into integrated housing plans. Integrated human settlement, practically speaking, means including social services and bulk services in housing [developments].Social services are administered at provincial level, bulk services are administered at national and local levels, and housing planning [takes place] at local level and is approved at provincial level.”Hickey-Tshangana suggests that there is a need to shift away from a single housing product model : the give-away standalone house. Instead, there is a need to concentrate on providing government support to directly supply and indirectly intervene with the private sector to increase the supply of other housing products (affordable rental, multistorey units, wendy houses in backyards, serviced sites) and other financing instruments (subsidised loans).She affirms that PDG believes that the task is achievable if one thinks more creatively in terms of housing products and delivery instruments for demand-side interventions, such as housing vouchers, instead of remaining locked in our stale supply-side approach, which is incapable of making a dent in the backlog.
MEC N Mabandla to launch housing projects
N Mabandla to launch housing projects, 10 Jul
8 July 2009
Responding to a call to prioritise rural development, MEC for Housing Mrs Nombulelo Mabandla will launch three housing projects in Mbizana local municipality that will provide homes to over a thousand rural beneficiaries in Mbizana over the next two years. She will launch the projects in Mbizana local municipality on Friday, 10 July 2009 as part of her rural housing provision.
The provincial housing backlog is estimated at 797 932.
Of this number
* 26% of the housing backlog represents informal dwellings
* 6% of the housing backlog being backyard shacks
* 68% of the housing backlog entailing traditional dwellings, which according to Statistics South Africa are regarded as inadequate.
Rural households are poorer than urban households with many dependent on the state transfer in the form of pensions, welfare grants and income poverty relief and development projects for survival. These figures will guide the department in executing and accelerating rural housing during this term of government.
The projects to be launched include 800 houses already completed and now installing internal services, 100 under construction and a further 600 houses falling under new projects still to be constructed.
Over R40 million rands has been allocated in all these projects for Mbizana area.
Contact: Lwandile SicwetshaCell: 071 6711770E-mail: lwandileS@echousing.gov.za
Issued by: Department of Housing, Eastern Cape Provincial Government8 July 2009
Invitation sent 16 July 2009
Dear Lwandile
The MEC faces an enormous challenge to address the Housing backlog in the Eastern Cape. We would appreciate the opportunity to present a unique proven approach to the quality delivery of homes, by providing skill training and the prospect of owning their own sustainable business (See attached).
By combining moladi, the huge backlog of housing (“The provincial housing backlog is estimated at 797 932”) and the opportunity of training the local unemployed will result in a “Win Win” scenario for your Department and South Africa.
Our technology, born 23 years ago, is labour intensive, not dependant on skilled labour and a solution to the issues we face today We are passionate in what we do and how we do it - to get South Africa (Pty) Ltd working and create the 500,000 jobs that President Zuma promised - visit www.moladi.net.
As reference to our expertise and track record I have included the invitation received from Habitat for Humanity International to present moladi at the 2nd Asia Pacific Housing Forum to be held at the Asian Institute of Management in the Philippines in September 7-9, 2009.
You are also most welcome to visit our factory here in Port Elizabeth where we export our construction technology to more than 25 countries.
Regards
Hennie BOTES
Mobile: +2784
Office: +27413722152
http://www.moladi.net/
8 July 2009
Responding to a call to prioritise rural development, MEC for Housing Mrs Nombulelo Mabandla will launch three housing projects in Mbizana local municipality that will provide homes to over a thousand rural beneficiaries in Mbizana over the next two years. She will launch the projects in Mbizana local municipality on Friday, 10 July 2009 as part of her rural housing provision.
The provincial housing backlog is estimated at 797 932.
Of this number
* 26% of the housing backlog represents informal dwellings
* 6% of the housing backlog being backyard shacks
* 68% of the housing backlog entailing traditional dwellings, which according to Statistics South Africa are regarded as inadequate.
Rural households are poorer than urban households with many dependent on the state transfer in the form of pensions, welfare grants and income poverty relief and development projects for survival. These figures will guide the department in executing and accelerating rural housing during this term of government.
The projects to be launched include 800 houses already completed and now installing internal services, 100 under construction and a further 600 houses falling under new projects still to be constructed.
Over R40 million rands has been allocated in all these projects for Mbizana area.
Contact: Lwandile SicwetshaCell: 071 6711770E-mail: lwandileS@echousing.gov.za
Issued by: Department of Housing, Eastern Cape Provincial Government8 July 2009
Invitation sent 16 July 2009
Dear Lwandile
The MEC faces an enormous challenge to address the Housing backlog in the Eastern Cape. We would appreciate the opportunity to present a unique proven approach to the quality delivery of homes, by providing skill training and the prospect of owning their own sustainable business (See attached).
By combining moladi, the huge backlog of housing (“The provincial housing backlog is estimated at 797 932”) and the opportunity of training the local unemployed will result in a “Win Win” scenario for your Department and South Africa.
Our technology, born 23 years ago, is labour intensive, not dependant on skilled labour and a solution to the issues we face today We are passionate in what we do and how we do it - to get South Africa (Pty) Ltd working and create the 500,000 jobs that President Zuma promised - visit www.moladi.net.
As reference to our expertise and track record I have included the invitation received from Habitat for Humanity International to present moladi at the 2nd Asia Pacific Housing Forum to be held at the Asian Institute of Management in the Philippines in September 7-9, 2009.
You are also most welcome to visit our factory here in Port Elizabeth where we export our construction technology to more than 25 countries.
Regards
Hennie BOTES
Mobile: +2784
Office: +27413722152
http://www.moladi.net/
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