Showing posts with label human settlements. Show all posts
Showing posts with label human settlements. Show all posts

Biography of Tokyo Sexwale

ZAR.co.za - Biography of Tokyo Sexwale: "Sexwale"


Once an ANC activist, political prisoner and populist politician, leading businessman Mosima Gabriel (Tokyo) Sexwale is a man with a personal history as fascinating as the changes that have taken place in South Africa. He was once of the ANC's most ambitious politicians and tipped for great things. Nelson Mandela named him premier of the country's largest Gauteng province. Apart from his other qualities, personal courage alone made Tokyo Sexwale an extraordinary premier. From the beginning, during his first days in office in 1994, he ventured into hostels in East Rand townships where, before the elections, death tolls had sometimes risen to over 20 a day. Hostels were no-go areas for everybody save Inkatha Freedom Party warlords. But Sexwale ignored the risks. He left the Inkatha hostel-dwellers singing and dancing and agreeing to make peace with their neighbouring communities - which they did. Three months later South Africa's most conflict-ridden province descended into a calm broken only by the clashes of criminal syndicates. It must also have taken considerable nerve to have walked alone in the dead of night into a darkened, mutinous prison, lit only by fires and with injured people littering the floors, to negotiate the release of a white warder. When Sexwale came out of Modderbee on the East Rand at dawn that day in the middle of 1996, he left a peaceful prison - and he had the young warder safely with him. His bravery, and a belief that if a job were difficult then he personally should do it, sometimes frustrated colleagues. But if there are reservations about his leadership style among the many people canvassed on the subject, their judgements have been tempered by more than equal measures of praise. A senior aide who worked closely with him says:
"He has tremendous leadership ability, but often has difficulty in translating good ideas into action. He can see what needs to be done, but does not always trust those around him to carry out his plans."
In 1977 Sexwale was sent to Robben Island to serve a life sentence. He recalls one of his first impressions on arriving on the island and seeing Mandela:

"There is Nelson Mandela - the tall man amongst all prisoners on Robben Island - figuratively and literally. He was also taller than the jailers. Here is a man who, for 27 years, had to reshape himself, to emerge as ... some people call him, a saint. He is not a saint. He is fallible. And he's quick himself to admit whenever he has been rash, that he is also fallible. But in full glory you find Nelson Mandela towering above Robben Island. You meet him in the position of chancellor of the university of Robben Island."
Fellow Robben Island prisoner and close friend of Sexwale, Mzi Khumalo, formed the Pan African Mining Group with Sexwale and involved them both in mining and oil across Africa. He recalls a time there when prisoners became angry with elderly Rivonia trialist Wilton Mkwayi whose practice it was to squirrel away food to feed the pigeons. The birds would repay this kindness by defecating over the small recreation area the prisoners shared. Mkwayi had back problems, however, and was too frail to clean up the mess.The prisoners decided that they had had enough. They called a meeting at which consensus was sought on compelling Mkwayi to stop feeding the pigeons. Khumalo recalled the mood of the meeting.
"Tokyo disagreed with us; he said this man had been there for 20 years, and that the birds kept Mkwayi sane. I did my nut. Eventually Tokyo won the day; he offered to clean up the mess."
But the saga did not end there, Khumalo recalls with a laugh:
"Now, if Tokyo has one serious fault it is this - he loves to talk. So when the time came to clean he began, but some new people came into the section, so he put down his spade and went to speak to them, and the rest of us did the cleaning. He cleaned on other occasions; he does not shirk responsibility but if he can delegate he will."
A former Gauteng cabinet colleague expressed a slightly different view:
"He didn't always delegate, particularly if he felt he could make a stronger personal impact. However, he wasn't scared to take the rap."
Another close aide said:
"One of his biggest frustrations was that he went into government as a hugely successful mobiliser of popular support and a shrewd tactician, but he could not use that effectively in a government context."
To see Sexwale at a public event like the launch of Johannesburg's Inner City renewal campaign was to see him at his best. Switching between English, Afrikaans, Sotho and Zulu, he had the crowd laughing, cheering, pondering and applauding. No other politician could compete. Thabo Mbeki, who shared the platform with him, was well spoken in English only, and lacked the easy charisma so typical of Sexwale and Mandela. His style has not found favour with Thabo Mbeki of whom he said, "The president's shoes are huge and Thabo has tiny feet." (In 2001 Sexwale was accused, along with Cyril Ramaphosa and Mathews Phosa, of plotting to overthrow Mbeki from power. Sexwale denied the charges and all three received the backing of Nelson Mandela.)In the end, government stifled Sexwale, aides say. He too has acknowledged that he became exhausted by internal African National Congress intrigues.Khumalo says:
"One day he phoned me and asked me to come and talk. On the island it was our practice when discussing serious issues, to walk. We walked up and down, talking for about two hours. He told me he was thinking of leaving government for business, and I said, "Tokyo, Gauteng is too small for you."
Sexwale's primary interests are oil and diamond mining, for which he has concessions across Africa and Russia in a company he established called Mvelaphanda Mining (mvelaphanda is Venda for "progress").Not long after Sexwale announced his resignation from government, Harry Oppenheimer, patriarch of the Anglo-American and De Beers corporations, remarked at the opening of a diamond college in Johannesburg that few understood the local and international diamond-mining industry the way Sexwale did.Trained by the Soviet army during his Umkhonto we Sizwe days, Sexwale is reported to have networks among some of the major industry executives in the Russian state diamond company and has been offered concessions in the Federation. He has finalised diamond concessions in a number of Southern African states including Angola and is negotiating oil and diamond concessions in other African states.Finnish president Martii Ahtisaari approached him to be Finland's honorary consul-general in South Africa, and after Mandela gave his consent - there is little Sexwale does even now, without seeking Madiba's approval - the Finnish flag went up outside his Houghton home.Sexwale is a firm believer in economic patriotism:
"Japanese businesspeople work for Japan, the British work for Britain. The success of the African renaissance in repositioning our part of the world, depends upon economic patriotism. South Africans have to work for South Africa. Black business people will have to become economic freedom fighters in the true sense of the word. There needs to be greater opportunities for all, particularly in rural areas. Marx says if capital does not grow, it stagnates. We must see opportunities - and not only crises or global meltdowns."
He has a range of suggestions - from corporations freeing up their training centres at weekends for skills training and education to harnessing non-governmental organisations more effectively in developmental work.Sexwale has not made himself available for any elected ANC position; but he iremains active in his branch.
"A good leader must also be a good follower and as a member of the rank and file, I am prepared to be led. I love the ANC, it is a lifelong commitment to me. However, I am not cut out for government politics, it's too restrictive." As a successful entrepreneur Mr Sexwale is deeply committed to pursuing the dream of economic prosperity of the country's black majority. Relaxing at his office at home, his guitar and piano on one side, books lining the walls - a thick volume on Che Guevara wedged between a tome on The Competitive Advantage of Nations and Who Owns Whom - Sexwale muses:
"The challenge of existence is to fall in love with life and come to terms with all its joys and sorrows."Other famous quotes by Sexwale:
"The liberation struggle of our people was not about liberating blacks from bondage, it was about liberating white people from fear."
"Associate yourself not only with success but with failure too. Know your limitations, surround yourself with experts and good critics."
"If blacks get hurt, I get hurt. If whites get hurt, that's my wife, and if you harm coloured people, you're looking for my children. Your unity embodies who I am."

Tokyo Sexwale Announced as Minister of Human Settlements

Pretoria - Tokyo Sexwale has been announced as the Minister of Human Settlements.Announcing his new Cabinet on Sunday, President Jacob Zuma said the Department of Housing will be called the Department of Human Settlements to take on a more holistic focus.Going through the list of those who will take up seats in his Cabinet, Mr Zuma said: "Minister of Human Settlements - Tokyo Sexwale."A highly respected businessman, Mr Sexwale has held many senior positions in the African National Congress. He was imprisoned alongside Nelson Mandela on Robben Island were he was expected to serve a life sentence.As President of South Africa in 1994, Mr Mandela appointed Mr Sexwale as Premier of Gauteng.In 1998 he left public office and entered the world of business. He formed Mvelapanda Group, a Johannesburg Stock Exchange-listed BEE consortium.He also serves on the board of the 2010 FIFA World Cup Local Organising Committee.Mr Sexwale was named Tokyo because he enjoyed karate as a youngster. - BuaNews
Minister Sexwale, we at moladi congratulate you on your appointment to head the Human Settlements Ministry. We assure you of our support in your task to address the backlog and quality issues that you face - Congratulations!

moladi establishes construction training skills college


The backlog of houses in South Africa and the huge unemployment rate has prompted moladi to establish moladiCOLLEGE. The focus of moladiCOLLEGE will be to create employment and develop skills, creating an opportunity for Government to make good on its promise to deliver housing and create employment. moladiCOLLEGE has partnered with CETA (Construction Education and Training Authority) and Services SETA to train veterans


For more information visit www.moladiCOLLEGE.co.za

RDP house rented as shop

MEC throws man out RDP house:RDP house rented as shop

RDP house rented as shop

Mafikeng - A man running a shop from an RDP home he was renting in Coligny was thrown out of the house by a visiting North West MEC, her department said on Tuesday.Human Settlements MEC Desbo Mohono gave the businessman 14 days to remove his belongings from the house, which had allegedly been turned into a tuck shop illegally."Mohono made this startling discovery during her visit to Tlhabologang township at Coligny to assess progress on the 54 houses that were being constructed in the area," her department said in a statement.Mohono apparently told the businessman the house was intended for its rightful owner and not supposed to be a tuck shop."These houses belong to the needy. We will not allow people to use them for personal profit."The businessman told officials the owner of the house lived on the surrounding farms and that he paid him a monthly rental of R700.Mohono said after the businessman had been evicted the owner would be de-registered and the house given to another beneficiary on the housing waiting list.She indicated the owner would never get a government-sponsored house again.Department officials were attempting to find the owner before re-registering the house to a new beneficiary.

Keywords - RDP home, rdp housing, HOP huise, MEC Desbo Mohono, Human Settlements, beneficiary, towship, moladi solution, concrete home, formwork construction, rural housing solution, training, job creation

Housing need South Africa - 12 milllion people

Sexwale : 12 milllion people still in need of housing : South Africa

The SABC are reporting Saturday that Human Settlements Minister, Tokyo Sexwale, has confirmed that there is a backlog of two million housing units in the country.According to the Minister government still has to provide houses for 12 million people in South Africa.He was speaking at the launch of Tau Village, an inner city Social Housing project, in Pretoria on Friday and acknowledged that the government needed to meet people’s basic needs.The report also confirms that the residents of Tshabho - a village near Berlin in the Eastern Cape - have called on the Minister to investigate their housing project. While a company had been awarded a tender the project failed to take off. In addition that they have documents claiming to have finished their houses which was not true. According to residents' chairperson, Sizwe Yaka, several meetings have been held with the provincial department without resolving the issues.

Keyword - Human Settlements, Tokyo Sexwale, backlog, million, housing, moladi, concrete homes, sustainable development, South Africa, corrupt, fraud, SABS, basic need, job creation, houses, rdp, subsidy

RDP houses sold in contravention of Housing Act to be confiscated

RDP houses sold in contravention of Housing Act to be confiscated

RDP houses in the province transferred to beneficiaries less than eight years ago, which have been sold by their owners, will be confiscated and given to the needy, says Housing MEC Bonginkosi Madikizela.
Location specific audits have revealed that in some cases, as in George, up to 90 percent of RDP houses have been sold by beneficiaries, and a visit by former housing MEC Richard Dyantyi in 2008 revealed that up to 60 percent of RDP houses in Du Noon had been sold or let.
But Madikizela said the Housing Act stipulated that the RDP housing beneficiaries were not allowed to sell their houses within an eight year period, and his department was to audit the 101 000 housing subsidies granted since 2002.
“The houses that are returned to the Department in terms of the pre-emptive right clause (in the Housing Act) will be reallocated by municipalities to qualifying people in terms of the relevant criteria,” said Madikizela.
“We will find a way that government reclaim the houses (RDP) and give them to the needy.”
But he said the magnitude of the problem had to first be determined.
To this end his department was busy drafting terms of reference to appoint a service provider to analyse the status of all state-funded housing projects.
He said the survey to be conducted by an appointed service provider would also establish how many title deeds still needed to be transferred to beneficiaries and, where title deeds had not been handed over, what the reasons for the delay were.
“It is anticipated that this survey of our projects will be concluded by the end of the financial year (31 March 2011). However, once we have some preliminary data from this study we will already be in a position to start to plot a way forward in dealing with this matter.”
In Du Noon residents were scared to speak about the sales and ownership of RDP houses, saying they feared being killed if they spoke out about what exactly was happening.
Community leader Madlomo Ndamane said the sale of RDP houses was “a hot business” in the township.
“Its a big problem.”
She said beneficiaries sold their house, and then once they had spent their money, tried to reclaim it.
She also said there were people who were approved RDP house beneficiaries, but never occupied their house, suggesting that money could have exchanged hands and other people were given the houses instead.
Meanwhile, the City has admitted that it was battling to issue title deeds to approved RDP housing
beneficiaries in the metro.
Land acquisition specialist in the city’s housing directorate, Marlize Odendal said in many cases the occupants of RDP houses were not the official beneficiaries, which made it difficult for the city to issue title deeds.
“It’s a general problem (issuing of title deeds) and its country wide,” said Odendal
A senior city official in the housing directorate, who did not want to be named as he was not sure he was allowed to speak to the press, said the process of issuing title deeds in Du Noon was suspended last year as city-contracted workers received death threats from residents.
Blaauwberg sub-council chair Heather Brenner confirmed that city efforts to investigate “approved beneficiaries” of RDP houses in Du Noon had been continuously disrupted by people who did not want the project to move forward.
Brenner said of about 1000 RDP houses in Du Noon, half of them had been investigated and were occupied by official beneficiaries, but the remainder were unknown and under suspicion because residents there had threatened city contractors.
“It’s been a very frustrating exercise, true beneficiaries have been waiting for ten years to get their title deeds. They deserve them.”
Odendal said similar problems had been experienced in Gugulethu and Langa. — West Cape News

Keywords - RDP, illegal, confiscated, MEC Bonginkosi Madikizela, RDP houses, beneficiaries, Housing Act, human settlements, department, western cape, capetown

Squatter sites rise - informal settlements double

Squatter sites rise - informal settlements double

Squatter sites rise

The number of informal settlements in South Africa has doubled in the last 10 years.

Just last week about 100 households started erecting shacks across Main Reef Road near the Princess informal settlement in Roodepoort, western Johannesburg.
One of those hard at work was Tlotlo Sejamoholo.
"I was living on a plot but the owner sold it and we had to leave last week," he said. " That is why I am here."
Sejamoholo's neighbour, Josephina Mosulusi, said: "We are under constant threat from Metro police but we have nowhere else to go."
Other residents of the new shanty town said they moved from Princess because they were on a flood plain.
In 2001 there were 1 066 shanty towns nationally. That number has since risen to 2628 informal settlements "as at the 2009-10 financial year".
"This figure does not take into account any new or illegal informal settlements that emerged from the time the study was initiated and concluded. This figure is estimated to be nearer to 2700," said Chris Vick, who speaks for the national Department of Human Settlement.
Only about "721 informal settlements have been identified nationally for formalisation and upgrading with basic services by the various provinces and local municipalities", he said.
Gauteng has the highest number of informal settlements. At least 84 new informal settlements sprang up in the last five years - from 405 settlements in 2005. In January 489 were counted.
"Only 122 lend themselves to formalisation. To date 69 of the settlements have already been formalised and are now legally recognised as townships. That means people have a title deed registered in the name of the beneficiary," said Fred Mokoko, Gauteng spokesperson for housing.
"Settlements can only be formalised if the location of the settlement is complimentary to Provincial and Municipal Planning Policy such as the Spatial Development Framework (SDF) and Integrated Development Plan (IDP) in which municipalities amongst other things make provision for future housing planning.
"Settlements earmarked for formalisation will have to undergo not just an assessment from a planning policy or framework compliance point of view, but also suitability in terms of physical features such as the soil conditions, environmental sensitivities," Mokoko said.
"It would be important to acknowledge that as planning for a particular settlement is completed, and in the absence of stringent growth management measures in place, settlements continue to experience internal growth that often renders approved township plans obsolete. Such township plans will have to be amended or alternative plans must be put in place and often such dense settlements will have to be relocated elsewhere," he said.
Johannesburg municipality is carrying the heaviest burden with 180 shanty towns.
Currently, 25 percent of Johannesburg's citizens fall in the informal category which equates to about 200 000 households.

Keywords - Gauteng, informal settlements, moladi, rural development, concrete homes, backlog, households, Integrated Development Plan, Human settlements, shanty town, Chris Vick, Department of Human Settlement

Houses of horror - RDP housing corruption

Houses of horror - RDP housing projects corruption disappearance of millions intended for housing for the poor.

HIGH-RANKING Sundays River Municipality officials have been implicated in an extensive web of alleged corruption involving the disappearance of millions of rands intended for housing for the poor.



Allegations of gross mismanagement and fraud relating to four key RDP housing projects – for which more than R100-million was set aside in the once-thriving municipality – have been laid bare after a Herald investigation that was triggered by a government-initiated forensic audit in the newspaper’s possession.


So crippling has the alleged corruption been that the municipality’s accounts have been frozen.


The provincial administration has revoked its responsibility for any projects involving large sums of money, such as housing delivery, while it is placed under administration until it becomes functional again.


Government sources say arrests are imminent.


Tens of millions of rands have been paid to builders who were never authorised to become contractors on the RDP developments and who failed to complete the projects, while key officials have been accused of entering into “corrupt relationships” with councillors and their relatives by awarding them lucrative RDP home building contracts.


Top officials and councillors have also been accused of contravening the Municipal Finance Management Act by allegedly profiting from municipal building tenders – which they are accused of influencing for their own benefit – by awarding them to their families or companies they have shares in.


They, in turn, upped and left after completing only half the work.


Authorities are also trying to recoup up to R8-million which “vanished” from municipal coffers. The Herald has learnt the money was paid to contractors – who were never given the official municipal approval to work on the various developments – from a municipal account accessed by someone using the password of a former chief financial officer.


The projects at the centre of the cash scandal include those in Enon and Bersheba and Moses Mabhida in Kirkwood to which the Housing Department respectively granted R26.5-million to build 450 homes, and R45.7- million for 750 houses.


In Addo, a project in Nomathamsanqa township was granted R18-million for 300 RDP houses, while a stone’s throw away in Noluthando, R28-million was released for the building of 801 homes.


The projects, began between 2006 and mid-2008, should have been completed by now, but have ground to a halt. The Herald found hundreds of half-built homes throughout all four projects.


The figures are contained in a continuing forensic audit by the Housing Department, a report on which is in The Herald’s possession.


An inspection by the newspaper of the four housing projects revealed none were complete, with several hundred homes either half-built or mere shells with no piping or internal finishes such as ceilings. In many cases, houses lucky enough to have roofs did not have water or electricity or connection to sewerage pipes, effectively forcing the occupants to be reliant on a bucket system.


At least four councillors, two top municipal officials and several private contractors – some of whom are family of the councillors – are being probed in forensic investigations by the Special Investigations Unit (SIU), known as the Cobras, as well as the Housing and provincial Local Government and Traditional Affairs departments.


The Herald has learnt that the East London-based SIU – which two weeks ago seized and copied the hard drives of the municipality’s computers as part of its probe – has passed on its findings to the Directorate for Priority Crime Investigation, known as the Hawks.


Hawks spokesman Musa Zondi confirmed yesterday that the police unit was looking into three investigations regarding the municipality.


Former acting municipal manager Lungiswa Roji has also been suspended and is understood this week to be facing a disciplinary hearing for allegedly turning a blind eye to major irregularities by councillors and officials implicated in the scandal.


In March, Local Government MEC Sicelo Gqobana placed the Sundays River Municipality under administration and sent in Vuyo Zitumani as acting municipal manager to solve all the problems which had crippled delivery in the area.


Zitumani acted in a similar capacity in 2007 when she was made acting municipal manager of Mthatha for nine months.


Sources close to the businesswoman said she was shocked at the level of corruption within the municipality when she arrived four months ago.


“When it comes to officials (found to be corrupt), we will be hard on them,” said Zitumani, who yesterday refused to disclose the names of those implicated in the various probes.


“There are serious allegations which the SIU has reported to the MEC,” she said.


“We want to wrap up the investigations as soon as possible. The communities want to see action and are very eager to see an outcome.”


Zitumani said the area’s housing development status – allowing the municipality to oversee developments – had been revoked and was now in the hands of the provincial department.


She has also cancelled five housing tenders which were awarded irregularly.

Keywords - RDP, housing, housing for the poor, housing tenders, Municipality officials, corruption, millions, corrupt, builders, contractors, RDP developments, Top officials, councillors, human settlements, Housing Department, Local Government, MEC Sicelo Gqobana


Housing project hits dead end

News - Development: Housing project hits dead end

Launched amid much fanfare in 2007, the housing project to build middle-income houses in Joe Slovo in Langa has failed to deliver. Only 43 of the promised hundreds of houses have been completed, and even these stand empty months after their completion, with the criteria for acquiring a house having changed dramatically.The project, called the Joe Slovo Vision Village, saw a partnership between the government and First National Bank to build hundreds of homes as part of the government's N2 Gateway housing project.FNB invested more than R900-million in the N2 Gateway for the building of the bonded houses, some of which were to be built in Delft.

The Cape Argus has been unable to establish how much of the R900m has been spent as the national Department of Human Settlements has failed to respond to telephone calls and e-mailed questions.

Unveiling the project in June 2007, then Housing Minister Lindiwe Sisulu said the project would build 3 000 bonded houses as part of phase two of the N2 Gateway project, to benefit households with a joint income of between R3 500 and R7 500. Unit prices would range from R150 000 to R250 000.

FNB's Jan van der Walt explained that the bank had agreed in 2007 to develop and build approximately 550 housing units in the affordable range in support of the government's "Breaking New Ground" policy.But by today, only 30 prospective buyers have been approved by the bank. And the criteria that applicants have to meet to be considered as prospective buyers require a household income of no less than R6 500 (depending on the type of the unit), permanent employment, and an acceptable credit record.The prices of the housing units have also gone up, starting at R' 000, increasing in value and size up to R594 000.

Van der Walt said the initiative was to be integrated into and form part of the larger development known as Joe Slovo, the latter being one of the land development areas comprising the N2 Gateway project.But the community of Joe Slovo protested against the idea of such integration and staged mass action, which saw the vandalisation of construction and equipment in the first phase, at a cost of R2,2m.This was followed by a high court action, in which Sisulu was granted an interdict restraining the community from further destruction, or interfering with the development.Van der Walt said notwithstanding the court ruling, a decision was made to limit the development, and FNB would only proceed with the first phase, comprising 43 units."This necessitated a redesign of the development and, together with further delays that were experienced, led to a further indirect cost implication. "In total, an amount of approximately R22m has been expended on this development to date."One of the reasons for continuing the downscaled project was to allow FNB the opportunity to recover at least some of its wasted costs and expenditure, by developing units at prices which were inevitably more than the original affordability levels," he said. The 43 housing units had been completed with two types of tenure offered - sectional title and full ownership.Van der Walt said prospective buyers had been identified and provisionally approved to purchase and take transfer of the units, but transfer could not take place at this stage. This could happen only after all the relevant statutory approvals had been obtained.The land on which the development was built was also still owned by the City of Cape Town, and needed to be transferred to FNB or to the bank's nominees. This process was also under way.

Low cost housing developer - Seakay may go bust

Low cost housing developer - Seakay may go bust

Johannesburg - Seakay, the country's largest developer of low-cost housing, is edging towards liquidation after government failed to pay it R218m for contract work - an amount for which the construction firm is preparing to sue.
Gerry Holtzhausen, executive director for Seakay, told Fin24.com the company had delivered two summonses for amounts totalling R218m to government's department of human settlements, led by Tokyo Sexwale, for the non-payment of contracts for the last two years.
"At this stage we have our hands tied behind our backs. We can't get an overdraft facility and the NHFC [National Housing Finance Corporation] is also threatening to foreclose us and liquidate us," said Holtzhausen. The NHFC is a government created financing institution.
Seakay is unable to apply for another loan owing to existing debt of R128m from the NHFC. Seakay ceded its entire debtors' book as security and has none left to give other banks.
"Government is not paying at all - and I mean at all," said Holtzhausen in an interview.
"It is more committed to 2010 [than to housing and health] and it has had to 'top slice' departments [to fund and accelerate 2010-related works] so that they can't sit with egg on their face. All the money is going to 2010-related work," he said.
Seakay's summonses relate to construction work on the N2 gateway project in Cape Town worth R133m, and an R85m sum for the Gauteng department, even though the actual contract value is R100m. "Contracts signed with government say [it will] pay in 47 days," said Holtzhausen.
More than 80% of Seakay's business is exposed to government-funded work. About 10 000 jobs related to Seakay's contract work are at risk.
Sexwale may help
"We've worked our way through the ranks and gone very high up; we've now asked for a meeting with Sexwale," said Holtzhausen.
Government asked Seakay in 2008 to support its own expenses until after the 2009 April general election, whereafter repayment would be made.
According to Holtzhausen, about R2.2bn in funds was transferred from Gauteng's treasury and handed to the Gautrain development, a high-speed rail public transport system. "All departments in Gauteng are cash-strapped."
Seakay's growing debtors' book has also heightened employee stress levels. Holtzhausen has reported site vandalism as well as the kidnapping of a contract manager.
He said it was a Catch 22 situation: the group did not wish to antagonise government as it would need it as a future source of work, but it was a listed company with shareholders. "Many smaller construction companies have closed doors because of non-payment by government."
Sexwale may look kindly on Seakay's proposals, which include a one-bar (lump sum) payment a year instead of rolling money coming in every month. "If we get cash flow stream on 90 days, we can build twice as many houses in one year.
"Tokyo [Sexwale] is going to make an announcement on housing in the next 60 days. Hopefully he's taken our bait, and if that happens it'll turn housing delivery and Seakay around."

Keywords - Seakay, Tokyo Sexwale, bust, bankrupt, low cost housing, developer, Human settlements, liquidation, nhfc, National Housing Finance Corporation, forclose, Gerry Holtzhausen, non-payment, N2 gateway

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.

Housing or human settlements

Take back the power - Times LIVE

Dr Mamphela Ramphele says it is time for ordinary South Africans to once again seize control of their own destinies - and firmly remind puffed-up leaders that citizens are the real rulers of this country

We also need to change our development model as a society. A society of passive citizens waiting for delivery of services from government is a society at risk. Imagine how much of an impact we could have had on poverty over the past 15 years if we had involved poor people in the formulation and implementation of development projects in their communities!

Take housing or human settlements. The involvement of prospective house owners in the mapping of settlements, the laying of infrastructure, the building of houses, including all the finishing touches done under management and supervision of experts, would not just produce better houses and neighbourhoods. It would also provide a skills-training base for thousands of young people trapped in poverty. It could defuse the time bomb we are sitting on, of 50% of those aged between 20 and 24 who are wallowing in despair: not in school, not in training and not employed.

We also need to review our approach to social welfare. Our tax base cannot sustain 13 million welfare-grant recipients. Nor is it desirable to have so many people depending on hand-outs. Why not learn from Latin America and turn welfare-grant recipients, other than the severely disabled and the aged, into trainees for productive lives as skilled workers or entrepreneurs? The Grameen Bank in Bangladesh is another example of empowering poor people by giving them a leg-up and not just a hand-out.

Ramphele is former MD of the World Bank and vice-chancellor of the University of Cape Town

RDP houses from hell

RDP houses from hell - DA

Parliament for the People: Visit to RDP housing projects in Limpopo
On Monday, we visited a number of RDP housing projects in Limpopo along with DA Limpopo Provincial Leader Desiree van der Walt and DA MP Mpowele Swathe. We were also accompanied by DA MPLs Jacobus Smalle and Meisie Kennedy, DA Councillors Danie van Heerden and Moses Matlala, as well as a number of DA members and activists.
We visited three RDP housing projects across the province namely:
an urban RDP housing project in Mokopane in the Mogalakwena municipality;
a rural RDP housing project in the Motwaneng village in Marble Hall;
a rural RDP housing project in the Makurung village in Lepelle-Nkumpi.
Visit our Parliament for the People webpage on the DA Media Centre where we have uploaded a detailed report and photos
By far the most disturbing things we found at the three housing projects we visited were the following:
Houses have been built below ground level which results in sewage from higher lying extensions and rain water flowing into these houses;
Houses have been abandoned by beneficiaries due to this flooding;
Toilets have not been connected to sewerage pipes resulting in residents having to use the fields outside their houses and sewerage flowing into their houses through these open pipes;
No running water or electricity supplied to the houses;
Holes in the roof sheeting and no window panes in many of the houses;
None of the resident's have signed "happy letters" when allocated their houses - a prerequisite which beneficiaries are meant to sign before occupying their houses;
Slabs cast by contractors as far back as 2006 with no building taking place since then;
People who were thrown out of their houses, which were demolished and have not been replaced;
A number of RDP houses that have been half-built and are standing empty as a result;
A family of seven orphans who have been promised a house four years ago are still waiting for their house which has been standing for years without a roof or windows.
We spoke to many of the people living in these three housing developments who told us how government officials visited them before the elections and made numerous promises including supplying them with candles on a regular basis and also that it would start building houses for them from 1 May 2009 - which has not happened.
The situation we found in Limpopo means the following:
The housing backlog in the province continues to grow on a yearly basis;
Money is wasted on building houses that are never completed or occupied;
More money has to be spent to repair or rebuild houses that have not been properly built, resulting in houses costing way more than what was originally budgeted;
A large number of contractors are paid despite reneging on their contracts and no action is ever taken against them.
The people worst affected by the current situation are the ordinary South Africans we met during our visit who continue to live without proper shelter and access to basic services such as running water, proper sanitation and electricity.
It is imperative that both the National Department of Human Settlements and the Limpopo Provincial Department of Local Government and Housing urgently intervene in this regard to ensure that the incomplete houses in the three areas we visited, as well as the rest of the province, are completed, that action is taken against contractors who fail to fulfil their contracts, and that money is spent efficiently and effectively when it comes to the provision of housing.
The DA will therefore be taking a number of action steps at both a national level in Parliament as well as a provincial level through the Limpopo Provincial Legislature to deal with the current housing crisis in Limpopo. We will also conduct a follow-up visit within a year to see whether any improvements have been made to these three housing projects.
We will provide continuous feedback on outcomes of our actions steps as well as what we find during our follow-up visit on our Parliament for the People webpage.

Joint statement by Athol Trollip, MP, Democratic Alliance parliamentary leader, and Butch Steyn, MP, DA shadow minister of human settlements, October 21 2009

Human Settlements - housing officials cited on R18m fraud

1300 housing officials cited on R18m fraud

THE Department of Human Settlements is disciplining more than 1300 housing officials who defrauded the housing subsidy system to the tune of R18million.

Human settlements director-general Itumeleng Kotsoane told Parliament’s human settlements committee yesterday that the special investigations unit had finalised 513 cases involving civil servants – many of whom were convicted.

The errant officials who “defrauded the housing subsidy system” have signed more than 1440 acknowledgements of debt to the value of R18399778 .

The officials have paid government back R1,8million so far, Kotsoane said. A further 795 officials are currently facing disciplinary action. Kotsoane told the committee that the spiralling costs of housing material posed a “huge problem” to the government.

He said the Competition Commission’s investigation of possible cartels in suppliers of construction materials such as stock bricks and cement will help reduce the costs of building houses in the future.
Meanwhile, members of Parliament urged Kotsoane to check that quality houses are being built as a way of preventing service delivery protests.

Committee chairperson Nomhle Dabuza said the human settlements department had also failed to monitor what happens to new housing projects.

The Housing Development Agency

The Housing Development Agency


The Housing Development Agency - HDA -was launched earlier this month to gain land for housing development. It will also assist in achieving government's target of eradicating slums by 2014.
Since 1994, the Government has built 2,7-million houses providing shelter to over 13-million people. By the end of this month, about 2,8-million houses would have been built, providing shelter to more than 13,5-million people. It is expected that the HDA will fast track housing delivery.
The HDA has already established four projects in the county: one in KwaZulu-Natal, Gauteng, Northern Cape and in Limpopo.

To view the interview with Mr. Taffy Adler click here - Video

Human Settlements increases referrals from Presidential Hotline

Human Settlements increases referrals from Presidential Hotline

7 October 2009

Media statement by Chris Vick
Special Advisor to Human Settlements Minister Tokyo Sexwale

The Human Settlements Department has increased its call centre capacity in response to the number of queries that are being channeled through the Presidential Hotline.

The Human Settlements National Call Centre has been in operation since 2003 and, like the Presidential Hotline, is toll-free - operating on the number 0800 146 873.

At the beginning of September, in anticipation of an increased number of calls, the Department added an additional six lines to its 0800 number, and employed six new call centre operators.

By the end of September, approximately half the number of calls being received by the Human Settlements call centre were referrals from the Presidential hotline. The majority of calls came from people living in Gauteng and relate to the demand database/“waiting lists”, and the status of subsidy applications.

We are obviously keen to ensure that we have the capacity to receive, process and respond to public queries - whether it is in the form of phone calls, e-mails, letters or walk-ins. We will continue to monitor traffic, to ensure we are geared to provide an efficient and effective response.

"provide an efficient and effective response"? - deliver quality homes addressing the backlog?

Low cost housing developments - moladiVILLAGE

A Pattern Language

We begin with that part of the language which defines a town or community. These patterns can never be "designed" or "built" in one fell swoop- but patient piecemeal growth, designed in such a way that every individual act is always helping to create or generate these larger global patterns, will, slowly and surely, over the years, make a community that has these global patterns in it.
Do what you can to establish a world government, with a thousand independent regions, instead of countries.
Independent Regions
With each region work toward those regional policies which will protect the land and mark the limits of the cities.
The Distribution of Towns
City Country Fingers
Agricultural Valleys
Lace of Country Streets
Country Towns
The Countryside

Connect communities to one another by encouraging the growth of networks.
Web of Public Transportation
Ring Roads
Network of Learning
Web of Shopping
Mini-Buses

Between the house clusters, around the centers, and especially in the boundaries between neighborhoods, encourage the formation of work communities;
Work Community
Industrial Ribbon
University as a marketplace
Local Town Hall
Necklace of Community Projects
Market of Many Shops
Health Center
Housing Inbetween

Within the framework of the common land, the clusters, and the work communities encourage transformation of the smallest independent social institutions: the families, workgroups, and gathering places. the family, in all its forms.
The Family
House for a Small Family
House for a Couple
House for One Person
Your Own Home

This is how developments must be done!!

Alternative Construction Technology - Low cost housing visit by Nomhle Dambuza

Daily Dispatch Online 2009/10/06

PARLIAMENTARIANS got a first-hand account of life in East London’s low-cost housing projects yesterday at the start of a week-long trip around the province.
Chairperson of the portfolio committee on Human Settlements Nomhle Dambuza said she was pleased with the progress in delivering RDP houses, but unhappy with the living conditions in places like Ducats and Duncan Village.
Dambuza said the provincial Department of Housing needed to unblock all projects that were halted because of poor workmanship and shift towards building sustainable human settlements where people had jobs and proper sanitation facilities.
“They are still using the old method of building houses, and the issue of sanitation is a mess. Something has to be done by the end of the week because it is a health hazard, ” she said.
Dambuza was speaking at a community meeting in Ducats outside East London, where emotional residents expressed frustration.
Resident Zukiswa Siwendu said she had lost two children in consecutive years because they had no clinics or ambulances to take them to hospital.
“We do not have clinics or mobile clinics here, the closest one is in Nompumelelo in Beacon Bay,” she said.
Siwendu said the scarcity of water and proper toilets were also a problem, because everybody shared the same tap and used long drops for ablution facilities.
“When the toilet gets full, we have to scoop everything out with a bucket and dump it in the bush, which causes an unbearable smell,” she said.
Another resident, Bonisile Ngqoyiya , said government should first finish all houses that were badly built before attempting to build more.
“The first RDP house that was built here has big cracks in the walls, even though there is an old woman living in it,” he said.
Ngqoyiya said local RDP houses were built in 2002, but were still unfinished seven years later.
He said the area did not have a proper dumpsite or refuse collectors, so people threw garbage onto the pavement where children played.
“We have been asking the municipality to collect the rubbish for years, but no one seems to care,” he said.
The committee will visit projects in Port Elizabeth, Cala, Queenstown, Whittlesea and Ugie during the week, and present a detailed report to Parliament. -
By GCINA NTSALUBA — gcinan@dispatch.co.za

afrol News - UN voices concern over SA housing riots

afrol News - UN voices concern over SA housing riots: "UN-HABITAT"

27 July - The United Nations agency tasked with promoting adequate shelter for all has voiced alarm at the riots over housing and basic services that have engulfed many South African townships over the past week.
Demonstrators protesting over the state of their housing, water, electricity and sanitation services have clashed with police in townships across the country, with dozens of people arrested and large amounts of property looted or destroyed.Daniel Blau, the Director of the Regional and Technical Cooperation Division of the UN Human Settlements Programme (UN-HABITAT), said on Friday that while food riots were not uncommon in Africa, it was unusual to have such protests for better housing and services.“While the Government of South Africa has provided important subsidies for social housing in recent years, the global crisis affects directly the urban poor in this country,” he said.“That crisis was ignited by the mismanagement of the United States housing finance sector. It has now an impact on the housing conditions of the African poor. Housing is increasingly at the core of economic and social development,” he also added. The UN agency has recently committed to ensuring better protection of land and property rights for people uprooted from their homes in Africa, which hosts nearly half of the total number of displaced persons worldwide.UN-HABITAT and the International Conference on the Great Lakes Region (ICGLR) also signed a Memorandum of Understanding earlier this month committing them to this common goal. Anna Tibaijuka, Executive Director of UN-HABITAT, said she hoped the new agreement will be an opportunity to “work together to mobilise resources and help the significant number of displaced persons in Africa.”The two institutions will work together to promote the creation of proper legal and institutional frameworks so that countries can be better prepared to protect the rights of displaced populations and to find durable solutions with regards to land and property issues. In 2008 there were an estimated 11.6 million internally displaced persons in Africa, nearly half of the total number of displaced worldwide.

Thubelisha Homes Closure Report, Joe Slovo Informal Settlement briefings, Management Committee appointment | Parliamentary Monitoring Group | Parliament of South Africa monitored

Thubelisha Homes Closure Report, Joe Slovo Informal Settlement briefings, Management Committee appointment Parliamentary Monitoring Group Parliament of South Africa monitored


Summary:
The Committee noted that Thubelisha Homes was due for closure on 31 July 2009. The Acting Chief Operations Officer explained that its mandate had been changed in 2006, and in 2007 it was set up as a Section 21 Special Purpose Vehicle company, to procure housing stock in line with Servcon’s rightsizing programme, and with a set closing date. However, Cabinet had not approved the mandate, and National Treasury refused to approve its full funding requirements, so it had become technically insolvent. It was granted a life line to sustain itself until closure, which would take effect on 31 July. The Board was dysfunctional as it did not have a quorum. Thubelisha had a troubled history from the start, due to under costing and its involvement in the N2 Gateway Project, which was dogged with political problems. Members asked questions about the funding to Thubelisha, both by way of the Municipal Infrastructure Grant, and the life line, the appointment of the Acting CEO for another year, whether Thubelisha had charged a management fee, why the mandate was extended in light of Thubelisha’s historically poor performance, its current achievements, and the progress of the closing down.The Committee was given a briefing on the closing down process, which noted that four task teams had been created. The staff complement had already decreased from 250 to 140 due to resignations, and only 40 of these staff were still not guaranteed of job transfers. Unfinished projects were to be transferred to Provinces. All financial reconciliations would be fully investigated and completed after 31 July. Members asked questions about the closing-down time frames, whether all employees should and would be given job transfers, the reasons why financial reconciliations were not yet completed, why provinces were unwilling to take on staff, how many matters would be taken over by the Housing Development Agency, and the reasons for Thubelisha’s failure. Members had not realised that the closure would be as complex, and the Chairperson noted that there seemed to have been many misunderstandings. Future service agreements would need to be more carefully drafted. Provinces must be told that they could not take on projects without staff.The Regional General Manager of Thubelisha gave a presentation on the status of and problems surrounding the Joe Slovo informal settlement. Residents were boycotting payment of rent, claiming that it was exorbitant, and had staged a protest march. Members noted that there had been many complaints, initially, of defects in the rental units, and asked whether these had all been identified and corrected, whether there was any other good reason why residents could withhold rent, what remedies were provided for non-payment, whether the difference between anticipated and imposed rentals was a factor, whether the rental units were viable, how many of the original intended beneficiaries were housed in these units, how many were given to people from other areas, and whether the residents were employed and able to pay. Members were handed a document outlining the history of the Court actions and decisions of the Constitutional Court in respect of the Joe Slovo area, noting that the Constitutional Court had ordered that residents must be relocated to temporary residential areas, and had imposed conditions on the temporary residences. This was due to begin by 19 August, but Thubelisha, the Minister and MEC could not meet this deadline, and had suggested a start date of 19 October. Two representatives from the Joe Slovo Task Team who were present expressed their concern that there had been no engagement with residents on the dates, and called for meaningful future engagements by the Housing Development Agency. The Chairperson acknowledged their concerns and asked that the Department deal with the issues immediately, and report back to this Committee on progress after the recess. She said all parties had contributed to the current problems, and not only Thubelisha could be demonised. Conflicting information had made it difficult to know what had happened, and the Department must report back to the Committee on the current situation.A management committee was elected, consisting of four ANC and three opposition members, for the Committee. Members also adopted the Minutes of meetings on 24 May and 28 June
Minutes:
The Chairperson noted that the meeting would be structured around the closure plan for Thubelisha Homes. She explained that Thubelisha Homes (Thubelisha) had been the provincial implementation agent for the formerly-named Department of Housing (DOH) in terms of two mandates. The Minister had announced that the entity would be wound up on 31 July 2008. Today the Committee would hear about its wind-up plan, the current position of the organisation and the future of its employees, on which certain commitments had been made by the Minister. Thubelisha Homes (Thubelisha) Mandate Presentation Mr Mano Pillay, Acting Chief Operations Officer, Thubelisha Homes gave a very brief background presentation on the entity to benefit the new Committee members (see attached document). Thubelisha Homes was a Section 21 company that had been founded in 1997 as a Special Purpose Vehicle to procure housing stock in line with Servcon's 'Rightsizing' programme. On 1 July 2006 its mandate was expanded to include the upgrading of informal settlements, the unblocking of housing projects, the fast tracking of emergency housing solutions, and leading the development for the Government's Mega Projects. However, the expanded mandate was not approved by Cabinet, which led the National Treasury to reject Thubelisha's budget requirements from 2006/2007 onwards. This in turn led to the insolvency of Thubelisha. A life-line had been thrown to the company when the MinMEC agreed to let Thubelisha utilise the interest income on advance payments from Provinces, which had been enough to cover the bulk of the entity's operational expenses. DiscussionMs M Borman (ANC) had asked for clarification on the numbers of R6.3 million for 2009/2010 and R6.6 million for 2010/1011 asking if these were the numbers that were the “life-line” referred to. If so, she asked how was the money being spent.Mr Pillay responded that the R6 million, which was payable to Thubelisha for 2009/2010, represented only a portion of the entity's operation costs. The sum was not related to the “life line” but had been awarded by the National Treasury, and he did not know how National Treasury had arrived at the specific numbers.Mr A Steyn (DA) asked why Thubelisha's Chief Executive Officer (CEO) had not stayed on to see the process of the wind-up through, and why an Acting CEO had been appointed.Mr Pillay said that Thubelisha had had an acting CEO since 2007, when the previous CEO had resigned. It was the Shareholder's responsibility to fill that position and to decide on how to do this. Thubelisha's Board had become dysfunctional in August 2008, as a number of resignations resulted in there being no quorum. Since a new board had not yet been appointed, the accounting officer, in terms of the Public Finance Management Act (PFMA) was now the Acting CEO. Mr Steyn asked how the Minister could have awarded the extended mandate, including the N2 Gateway project, to Thubelisha, when it had delivered very poorly, delivering only 13 000 homes over six years on its previous mandate. Mr Pillay said that at the time that Thubelisha was established, it was projected that the rightsizing programme should be completed in March 2006. Once that had been done, Thubelisha was expected to close, since, as a SPV, it had a finite lifespan. However, the Minister then thought in 2006 that Thubelisha could add value to the housing environment, which was the reason for the mandate being extended.Mr Steyn asked why the National Treasury had not approved the funding.Mr Pillay said he had been led to believe that this was due to the non-approval of the mandate by Cabinet. Ms A Mashishi (ANC) wanted bulletin three in the presentation clarified.Mr Pillay said that the fast tracking of emergency housing solutions related to situations such as widespread fires or other emergencies within informal settlements, although in fact there had not been many other emergencies apart from fires.Mr R Bhoola (MF) wanted to know more details about the funding. In respect of the “life line”, he asked, if it was used, what percentage this would offset from National Treasury, and whether the life line had assisted in Thubelisha concluding the mandate. He also asked when Thubelisha had found itself in trouble, and whether this was right from the outset or after the completion of certain projects.Mr Pillay gave some background information before answering the specific questions. He said that the reason for many of the board members’ resignations had been the problems with the funding and the company's technical insolvency. During the MinMec meeting the funding problems had been discussed. The only viable way to keep Thubelisha as a going concern was to utilise the interest income on advance payments. After the close down on 31 July 2009, all the money that had been forwarded to the entity by Provinces would be returned. The “life-line” funding had enabled Thubelisha to deal with close down costs other than the large accounts such as creditors, Voluntary Severance Packages (VSP) and retirement funds packages, which were to be covered by other funding, as would be explained in the second presentation.Mr Pillay said that many would have argued that Thubelisha had been in trouble from the onset. He conceded that for Thubelisha only to have right-sized 13 000 houses in six years was not an admirable achievement. However, it had been a very difficult environment to work in. Right-sizing meant that dwellers had to downsize, often from a house of 90m2 to a house of 30 m2, and the beneficiaries were reluctant to move. At the end of the period only 50% of the targets had been met. For the rest of the cases Government had had to pay out banks to allow beneficiaries to remain in their original houses. The Chairperson wanted to know more about the unblocking of housing projects, asking how many projects there were and how many had been successfully unblocked.Mr Pillay said that about thirty stalled projects had been unblocked. These had been very difficult to manage. There had to be audits performed on all units, estimating the spend, and rectifying houses and other aspects. Unfortunately it would take a long time to get those projects dealt with. There had also been a problem with Provinces’ willingness to cooperate, although some had been helpful. It had be pointed out that the last year had been the most successful one in the lifespan of Thubelisha, with 8 300 houses built, which was only 600 short of its target.Mr Steyn said that when the Housing Development Agency (HDA) had given a presentation to the Committee, it had been indicated that the CEO of Thubelisha would be transferred to HDA, which contradicted what was now mentioned. Mr Pillay responded that Mr Steyn's question about the CEO’s position was very valid. He did not know why the statement had been made that the Acting CEO of Thubelisha would be transferred to HAD, when Mr Pillay had in fact signed a contract employing the Acting CEO for another year. Mr Steyn also commented on a more general note, saying that this Committee had been under the impression that the mandate given to Thubelisha was approved and above board. Mr Steyn said that Thubelisha was doing work on behalf of the Provinces, and therefore the Provinces should be paying a management fee that should cover the operating costs. If such fees had been charged perhaps the insolvency could have been avoided.Mr Pillay responded that Thubelisha had charged a management fee on some of the projects. Other projects had been fully subsidised from the provinces. Ms Borman said that if the amounts provided by the National Treasury and the life-line were separate amounts, then the Committee needed details on the life line. She pointed out that even if Thubelisha did not know exactly how National Treasury had arrived at its final figure, there should be a business plan that outlined the required amounts. Mr Pillay said the interest income had been about R2 million a month. There had been a business plan outlining the required funding, but this had requested an amount of R130 million. This was the reason why he was unable to say why National Treasury had fixed the amount of R6 million.Ms Borman asked whether Thubelisha, having been given the rightsizing mandate, had realised how difficult it would be, and whether it had assessed its ability to successfully complete the mandate.Mr Pillay explained that when Thubelisha was given the mandates, it was assumed that it would be able to complete them. After the expiry of the first mandate Thubelisha had been trying to reinvent itself, and trying to survive so that it would not lose about 70 staff members. It had, in those circumstances, been willing to take on projects that no one else would touch. Mr E Mtshali (ANC) asked why Thubelisha had continued its work if the Cabinet refused to approve its mandate.Mr Morris Mngomezulu, Acting Chief Director, National Department of Human Settlements, said that when the Minister had given Thubelisha its new mandate a submission had been made to the Cabinet for Thubelisha to take on the emergency housing. This outlined, either explicitly or implicitly, other aspects of the mandate including the unblocking and upgrading of housing projects. The Cabinet had approved the submission made by the Minister and the Department had assumed that this had been a blanket approval of the whole memorandum. The National Treasury did not consider that this mandate included the Mega Projects, since they had not been explicitly mentioned in the submission. The Department, on the other hand, did consider that the Mega Projects fell under the housing project upgrades. When Cabinet had approved the emergency housing mandate, Thubelisha had been awarded R50 million to increase its capacity to handle the new mandate. National Treasury was responsible for funding the operating costs, but had only awarded Thubelisha part of its requirements, to match the part that Treasury considered was included. Mr Mngomezulu said that this begged the question why, if the mandate was not regarded as approved, any funding was awarded to Thubelisha at all. Here it seemed that National Treasury had been exercising its authority over the Department. There had been discussions between the Minister of Housing and the Minister of Finance, but the issue had not been resolved when the previous Parliament’s term had ended. Another issue that had not been mentioned was that the business model of Thubelisha had given trouble from the start. There had been an under-costing of projects from the beginning, and the fact that the entity got involved in projects that no one else wanted to be associated with also indicated that there was something wrong with the business model. The Department had tried to assist Thubelisha, and had encouraged it to change its business model. A final point to be taken into account when assessing the performance of Thubelisha was that when the N2 Gateway Project had been assigned there had been three parties; being the provincial, the national and the local authorities. Although he did not want to go into the political aspects, the change of administration of the City of Cape Town had also impacted on the project.Mr Mtshali asked at what stage Thubelisha had realised that the national government had refused to approve the mandate, and what had been done about it.Mr Mngomezulu replied that the project had been a flagship of the former Minister and Government, and there was a desire to see it succeed. The N2 Project was unique in that three parties had been involved, and the decision of one party not to pull its weight would not result in the project's discontinuation. There had been realisation of the difficulties but also the hope that those difficulties could be overcome. The N2 Gateway project had been initiated a while back, but the funds that were due to Thubelisha had been withheld, and only paid this year.Thubelisha Homes: Closure ReportMr John Duarte, Acting CEO, Thubelisha Homes, said that the Closure Plan for Thubelisha had been prepared in September 2008 and had been approved by the Minister on 15 December 2008. The implementation of the closure process had commenced on 9 March 2009, with the National Department (formerly named Housing, now named Human Settlements) guaranteeing the closure costs. Four task teams had been established to close down the different areas of Human Resources, Projects, Facilities and Assets, and Finance and Accounting. He reported that in respect of the closure of Human Resources, a number of staff had resigned during the past year, resulting in the number of staff decreasing from 250 to 124. Out of those 124 current staff members, 40 had not yet been guaranteed another job. The Facilities Task Team had cancelled all rental agreements, had finalised negotiations with Nashua and Telkom, and dealt with relocation and sale of furniture and movable assets. The Projects Task Team had planned meetings with the different Provinces to discuss the transfer of projects. Draft cession contracts were now being approved by the legal team. Creditors would be notified about the closure of operations by 31 July 2009, and the key focus of the Projects task team would be to deal with the financial reconciliation of all projects after 31 July. In the area of Finance and Accounting the National Housing Finance Corporation (NHFC) loan had been repaid. Thubelisha was still waiting to receive R60 million from Municipal Infrastructure Grant (MIG) debtors. It was in negotiation with South African Revenue Services (SARS) regarding VAT recovery. Claims had been submitted to the Department for the first portion of the closure cost, but no amount had been received as of yet. Thubelisha needed to bring the financial records up to date, analyse and collect all debts, settle the interest on the NHFC loan and negotiate the future of MIG debtors with the HDA. DiscussionMr Steyn wanted to confirm that as of the end of the month Thubelisha would not exist. Mr Steyn asked, in view of the previous statement that the CEO had been given a contract for one more year, how long the closure period was expected to be, and how this compared with the initial timeframe.Mr Duarte said that the law required that the operation had to have an accounting officer. Seeing that the Board was dysfunctional, the CEO had taken over the Board’s responsibilities and needed to be in place to sign off on the finalisation processes. The CEO had been appointed internally in this instance because of the lack of a Board. Mr Steyn said it was of concern that the staff levels had voluntarily dropped; he noted that it was likely that the most skilled individuals had left, and that was why there was difficulty in transferring the remaining 40. Provinces had accepted transfer of the projects but they still did not want to take Thubelisha staff on board. Although he did not want to see people becoming unemployed, it must be questioned whether Thubelisha had a duty to continue to provide staff that were not competent with jobs and salaries.Mr Bhoola noted, in respect of employment, that if 31 July was the last day of operations then it was important for employees to know if their employment would continue. He noted the comment that the staff in KwaZulu Natal would only be transferred if their salary payments would also be transferred, and he asked what would happen if this was not achieved.Mr Duarte said that there would be no more Thubelisha staff employed permanently from 31 July. Any staff dealing with the winding up would be employed on a contractual basis, and some had been kept on because they had institutional knowledge that was important to finalise the closure. He agreed that it was often the less skilled staff who had not been transferred, but said that this did not render them any less important. The closure of Thubelisha had not been their fault, and it was the employer's responsibility to take care of them. In respect of those in KwaZulu Natal, he said that the provinces had changed their minds; KwaZulu Natal, having initially said that it would take on Thubelisha staff, had refused to sign to do so. Similar problems had arisen with almost every other agent with whom there had been negotiations. Mr Steyn said that he was willing to bet that no Department dealing with housing was fully staffed since all appeared to have vacancies, and therefore he stressed that he could not understand why they had been unwilling to accept Thubelisha staff. He also pointed out that the vacant positions were already funded, so there seemed to be no reason why those provinces should insist that the Thubelisha salaries also be transferred. Mr Steyn asked whether the R60 million of MIG funding excluded what had been received earlier this year.Mr Duarte said that MIG funding had always been a problem. The normal financial year ended in March. However, now it was necessary to provide closure accounts to all parties and it was important that these were correct. This meant that complex analyses had to be done in areas where there was a possibility that something could be overlooked. He cited, as an example, a project in Mandela Park, which currently had 50 foundations, 20 walls and various other items, and all of these had to be analysed and quantified correctly so that when the Provinces took over the projects all information was correct. It had to be accepted that this was a complex voluntary liquidation process. Mr Pillay added that the MIG funding mentioned by the Department had related specifically to the NHFC loans that Thubelisha had taken out a few years ago to fund some of the MIG expenses. The R60 million did not relate to that at all, but was funding that was owed to Thubelisha for work that had already been done. Mr Steyn was worried by the statement that creditor and debtor analysis was still ongoing, as he would have expected this to have been done earlier; the majority of it should already have been finalised so that Thubelisha could get a clear picture of its status. It was also worrying that the Committee was not being provided with the full picture. Ms Borman asked within what time frame the task team in charge of finalising the winding up was working. He commented that it was important that the final creditor and debtor statement was produced in order to provide an insight into future balances and settlements.The Chairperson said that Thubelisha was still awaiting approval from National Treasury about transfers, but no timeframe had been mentioned within which the matter was to be finalised. Mr Duarte responded to all the questions on time frames together. As a Section 21 company, Thubelisha had to adhere to the PFMA, which meant that the closing down procedure was complex. It had been agreed that the operations would be closed down on 31 July 2008. It was not possible to give an exact time frame by when the smaller task teams would be able to wrap up. For example, in the Human Resources area, the final taxation, VSPs, UIFs, reconciliations and other matters still had to be done, which meant that the task team would be busy for another 30 to 90 days. Thubelisha was a relatively large company when judged by cash flow, but it had a relatively small number of staff, which added to the complexities in shutting down. Mr B Dhlamini (IFP) asked the Department what indications there were that things would be done in a different way now that the HDA was to be taking over Thubelisha's mandates. Mr Mngomezulu said that the N2 Gateway Project had provided many lessons to be learnt. It could already be seen at Zanemvula, which had been much better implemented. The Department believed that with the transfer to HDA there would be a great improvement. Not only staff, but also expertise needed to complete the projects would be transferred. HDA would be run in a different way from Thubelisha, since lessons had been learned from the problems with Thubelisha and Servcon. The Committee could rest assured that there would be an improvement.The Chairperson asked how many of these projects would be transferred to the HDA, and what timeframe the HDA had to complete these projects, so that the Committee could continue to carry out its oversight duties. Mr Duarte said that Thubelisha had not prepared an analysis of the projects to be transferred for this presentation, but would gladly revert with those details. It was fortunate that the closure had informally started a long time ago, when Thubelisha had stopped taking on new projects. This had decreased the operational sustainability due to the decrease in investments, but it had also resulted in staff leaving and costs decreasing, which had contributed naturally to the closing down progression. The projects that were transferred would be outlined in the closing down report. Corporate governance would be honoured as a third party company had been brought in to ensure proper procedures. A closing down Committee had been established, with representation from the Department, National Treasury and Thubelisha, as well as various watch dogs to ensure that the process was carried out correctly. Thubelisha was appreciative of all the questions asked during the meeting because some of them had highlighted sensitive areas that might needed to be reexamined..Mr Steyn asked if anyone could say why Thubelisha had failed and what was responsible for the difficulties.Mr Duarte responded that the failure had been due to poor internal management. Thubelisha had been successful in the last year, which meant that it must previously have had a capacity for success.Joe Slovo Residents' protests: Briefing Prince Xanti Sigcawu, Regional General Manager: Western and Eastern Cape, Thubelisha Homes, gave a briefing on the march the previous week by protesting Joe Slovo residents. Some residents, who were currently residing in Thubelisha's rental stock in the N2 Gateway Project Phase One, had marched to express dissatisfaction with the rentals they were paying. He noted that before these residents had been allowed to take up occupation in the rental homes, a company had been appointed to screen all beneficiaries’ financial capacity to pay the rental of the different units. After being approved, these beneficiaries would also have signed a contract agreeing to pay the amount of rental, so it was clear that the people now protesting were defaulting on their agreements. There had been structural defects with the units initially but these had all been corrected, and now residents were expected to comply with the contracts they had signed. DiscussionMr Steyn said that the first concern was that the current tenants were not the ones whom the N2 Gateway Project was supposed to benefit initially. Secondly, the people who had been screened and deemed qualified to pay rentals had boycotted doing so due to the structural defects of the houses. It was crucial to ensure that all these defects had in fact been corrected. If so, and there were no defects that would justify non-payment, then the law should be allowed to take its course, because Government could not afford to lose any more money on the rental units. Money should instead be spent on building houses for those who were initially supposed to have been the beneficiaries of the units, but who had now had to wait for an additional two or three years. The fact that there had been structural defects also lowered his confidence in Thubelisha's capacity. That aside, he believed that the Committee should do a site inspection to ensure that all defects had been attended to.Ms Borman said that the problem was that people were desperate for houses and it was important to be extremely careful in the criteria used when allocating houses. Her concern was that the final list of beneficiaries had not been properly screened. She noted that having one structural defect often led to the appearance of others, and she agreed that it was very important for the Committee to pay a visit to the site to ensure that there was nothing currently wrong with the units. Mr Dhlamini said that the situation at Joe Slovo was not unique. Many people wanted houses but they did not want to pay the rent, or they wanted to buy units. People were desperate and would often do anything to make themselves appear as qualified for the house, whether or not they could afford to keep it. It was the Committee's responsibility to determine if the Department was providing a service that was needed, since there were generally problems with rental stock. Mr Bhoola was curious to know details of the agreement between the beneficiary and Thubelisha Homes, asking what legal action could be taken in terms of non-payment. Although the Committee had to be sensitive to the human factor, clearly it could not allow a culture of non-payment to take hold. He suggested that clarity was needed whether the non-payments had been due to residents having to pay to fix their own defects, or if they were due to a general inability to pay. The Chairperson asked about the initial version of the building plan for the rental stock. From previous reports it had been suggested that it was to be an affordable housing rental stock, and that people would qualify to rent the houses if they earned at least R1 200 a month. However, when the programme was actually implemented, the minimum salary requirement had been raised, so that it was then stated as between R1 500 and R7 500 per month. She asked whether Thubelisha was sure that all those who entered into the agreements were indeed qualified to benefit from the programme. She also noted that changes in the programme had led to other changes, including the design of the houses, and asked that this be further explained.Prince Sigcawu commented in general on all the questions. He said that Thubelisha could not be held responsible for the poor quality of the Phase One units, since it had only got involved in the N2 Gateway Project in 2006, when Phase One was 95% complete. He said that the screening process was reliable in that the company used had performed similar services in other campaigns and had always completed its mandate successfully. The contracts specified the legal action that could be taken in terms of non-payment, and those who refused to pay had to be evicted. However, before taking steps to evict, it was important to engage with the residents so that they understood the gravity of the situation. Thubelisha had engaged with residents extensively in this manner, but had up until now been unsuccessful in getting residents to pay the rent. In order to further emphasise the seriousness of their situation, eviction letters had been sent out to the residents, but these too seemed to have no effect. After closure of Thubelisha, the task of collecting rent would be transferred to the HDA, who were currently negotiating with the Cape Town Housing Company to run the project. Prince Sigcawu said that in respect of the rental model, a survey had been done, before the units were completed, indicating that the units would cost between R160 and R650 a month. After the completion of the units, it became clear that they had been more expensive than projected, and as a result the rental amounts were raised to between R500 and R1200 per unit. Residents would obviously have to be earning in proportion to what they would have to pay on rental. The rental model had been brought in by the Social Housing Foundation and employees from the Department of Housing (as it was then named). He said that the design of the houses Joe Slovo Phase One had not changed. Mr Mngomezulu added, specifically addressing Mr Dhlamini's question, that the provision of rental units was much more expensive than providing ordinary Reconstruction and Development Project (RDP) houses, and in addition the running costs were higher. The units had been intended for employed persons who had relocated to the city. Other urban dwellers should be afforded ordinary houses. Mr Steyn said that since the units had proved more expensive, and the rentals had increased, there had also been a change in beneficiaries. When the Committee had last visited the area they had seen expensive German sedans parked outside the houses, and had queried this, to which the Department had responded that those renting the units were not the people originally on the waiting list for housing, but were employed people. Mr Steyn asked how large was the percentage of defaulters, since he suspected that there had been a concerted effort by all the tenants to get their housing for the lowest possible price. Mr Steyn also noted that there was no confirmation that the complaints list and the defaults had been attended to. He also enquired if there had been any additional complaints that Thubelisha had perhaps deemed it not necessary to respond to.Mr T Botha (COPE) commented that Mr Dhlamini's question was very pertinent, since this situation did not affect rental stock. The Department had invited the private sector to build affordable houses, in order to address a market whose affordability problems would otherwise not be addressed. However, once people were given houses, they were either unable or refused to pay for them. Servcon had been created in order to help with the normalisation of payments and to ensure that houses were only given to persons who, based on their earnings, were shown to be able to afford the bond payments. Because there were people who could not pay bonds, the Department then decided also to provide rental stock. People moving into the units had found fault with them, were unwilling to pay the rental, and in most cases nothing was done about it. The Department now had to find some way to stop the political mobilisation against payment of rentals. The N2 Gateway Project had had very little to do with affordability and much to do with the politics of Cape Town. There had been tension between the national, provincial and municipal departments, which had resulted in costing problems, as well as contractors going on to site before proper contracts were put in place. The one thing that could be learnt from the N2 Gateway Project was how not to do things. Mr A Figlan (DA) asked why people were refusing to pay rent, whether there had been any communication between Thubelisha and the N2 Gateway tenants, and whether any repairs had been carried out. He pointed out that he had visited the development two or three times and noted that many of the residents were not employed or working. Mr Bhoola said that the original intended beneficiaries had been given false expectations that their rental would be between R160 and R500. This had subsequently been increased. He asked if the people who had qualified for the higher rental were the same beneficiaries, or were different ones. If they were different, then he asked what was being done for the people who were initially expecting to be housed.Mr Mtshali asked who was responsible for the cost of repairing structural defects. Mr Dhlamini pointed out that in 1996 large contractors were employed to develop low cost housing. This had been badly done, and the State had had to intervene to rectify their mistakes. After that, commercial contractors had refused to touch that market. In order to entice commercial contractors back to work on these projects, Government had changed the plans for the market to include rental stock and better quality houses. When the commercial contractors did return, they did so on their terms, not wanting to build the cheaper units, unless this was done in terms of the mixed development concept. This meant that the development of housing was not driven only by the needs of the people, but also by the needs of the large developers. The Department needed to explain its financial model, so that problems similar to Joe Slovo could be avoided. Mr Dhlamini concurred that some people did not want to pay for housing. This may be so, but they had also been given the expectation that rentals would be between R160 and R600, when in fact they then rose to between R500 and R1200. He said that promises were being made to the people, and they must be fulfilled.Ms Mashishi said that there were a number of contradictory remarks. The Department had said that the residents were employed, but Mr Figlan said that he had observed that this was not so. She asked if a proper quality monitoring had been done.Mr Botha pointed out that people had to be working in order to qualify to be allocated rental stock. If they were not working, then there was something wrong with the process. He said, to clarify the points made by Mr Dhlamini, that at one stage the larger contractors had stopped building in this market but that the Department had tried to get them back because the small contractors were not able to build at the rate that the Government wanted houses delivered. The housing mix had then been implemented, so that there would be a cross subsidisation of the infrastructure cost. On that basis, the commercial contractors had agreed to come back. It was expected that those moving into the houses would be paying for their accommodation. Government only subsidised the indigent. It was unfair to lambast the commercial contractors, as they had been invited to participate on specific terms. This was a political issue since Government and politicians gave conflicting signals in this area.Prince Sigcawu said that Mr Botha’s comment indeed did answer Mr Dhlamini's question. He said that there had been constant communications between the tenants of Joe Slovo Phase One and Thubelisha. Many of the flats were now being sublet. The default rate was between 75% and 80%. The expectations created in terms of the initial rentals did not apply to the residents who were now in place, and who had been screened for their ability to pay the higher rentals. He was not aware of any complaints that would justify residents not paying their rents. The contractors had had to pay for the costs of the structural defects, and Thubelisha had compiled a report on how it had attended to defects, which would be forwarded to the Chairperson. Mr Pillay added that the capital grants were given to Thubelisha for repairs and maintenance of the units, but that these grants only covered the initial period. If Thubelisha did not receive the due rentals there would inevitably be a deterioration of the area, since the cost of the maintenance was about R300 000 a month and Thubelisha had been receiving about R40 000 a month in rentals.Ms Borman asked if there were any controls in terms of the subletting and if tenants had been told during the screening process that subletting was not allowed.Prince Sigcawu replied that the rental contracts did specify that residents were not allowed to sublet the flats, but as alluded to previously, there had been some political problems with the matter, sometimes even to the point where Thubelisha could not even carry out its administrative tasks. Mr Figlan said that there had been a split of 70%:30% in residency between local residents and others. He suggested that perhaps some people had become unemployed and asked if adherence to the original allocation may have resulted in the current problems.Prince Sigcawu responded that this was not the case. Thubelisha had abided by the policy that 70% of the houses were to be offered to local residents of Joe Slovo, and the remaining 30% to residents of Langa. However, some from the local community who had qualified for the rentals had declined to move into the new units. Thubelisha had then offered those declined houses to people outside, such as those from Nyanga and Gugulethu. Residents who were unemployed and not earning anything were given free housing. Joe Slovo Constitutional Court Case: BriefingPrince Sigcawu said that he had provided an eight page document for the Members to read and that he would only highlight the most important aspects. He noted that Thubelisha, the National Minister and the Provincial MEC had originally challenged the residents of Joe Slovo in a Western Cape court and won their case. An appeal was lodged, which found in favour of Thubelisha, the Minister and the MEC. However, the Constitutional Court was then requested to rule on the matter, and, on 10 June 2009, laid down certain conditions, such as that the residents had to be relocated to temporary residential areas. These areas’ units must be 24 m2, should have electricity, there must be tarred roads, and other conditions. The relocation should begin by 19 August, but unfortunately Thubelisha, the Minister and MEC were not in a position to meet that deadline. The lawyers for Thubelisha and the lawyers of the Joe Slovo residents had met and it had been suggested that the relocation should start on 19 October. The document provided was self-explanatory, save that he asked that paragraphs 26, 27 and 28 be deleted, since they were not applicable. He suggested that the Committee should ask any questions to clarify the matter.The Chairperson of the Task team for Joe Slovo noted that Thubelisha had been ordered by the Constitutional Court to consult with Joe Slovo residents, and the due date had been the previous day. He said that he could not understand how the date for the relocation had been decided before Thubelisha had engaged with the residents.The Chairperson noted that she had not been aware that the Joe Slovo Task Team were present in the meeting, and confirmed that the Committee needed to hear the questions of the residents and ensure that they were addressed.Mr Mtshali suggested that the Department and Joe Slovo Task Team should be given the opportunity to engage, but that the Committee should not intervene in this process.The Chairperson said that the Committee would offer the Department the opportunity to engage with the residents, and would monitor to ensure that this was done. She pointed out that Members, having been appointed to represent the electorate, had a responsibility to listen and deal with their questions very thoroughly. Mr Mzwanele Zulu, Spokesperson for the Joe Slovo Task Team, said that it was important that the new Housing Development Agency should meaningfully engage with residents of Joe Slovo so that the houses were not further delayed. The issues being discussed today should never have been allowed to arise. RDP houses should not have been delayed as they were by a lack of transparency and meaningful consultation. All residents needed to be consulted on housing developments, so that marginalised people were allowed to be part of the development and were empowered, not forced to the outskirts of the city. Relocation had been an apartheid policy that should not happen in a democratic South Africa. The Chairperson responded that the Committee took these views seriously and needed to establish a timeframe. When Parliament reconvened in August, the Committee would follow up that the Department had indeed discussed the matters raised by the Joe Slovo residents. At least half of the matters brought up should have been dealt with. The need for consultation was not even up for debate.The Chairperson commented that there were many lessons to be learnt from the N2 Gateway Project, and these should be applied by all to ensure that a similar situation did not recur. The Committee had believed that the process of closing down Thubelisha would be more simple, but this was clearly not the case. It was also evident that there had been many misunderstandings between the parties involved. In the future the service level agreements must be clear, so that everything could be more easily understood by the Portfolio Committee. The Chairperson said that it was also clear that all parties involved had contributed to the “current mess” and Thubelisha could not be demonised as the only perpetrator. A special report commissioned by the Department had made it clear that the environmental assessments had not been done, that there was conflicting information, making it difficult to know what had really been happening. The Committee should request the Department for a report on the current situation, since the Committee would advise and assist the Department as part of its oversight. The Committee had not been informed that the Thubelisha Board was dysfunctional. Provinces should be told that they could not take on projects without also taking on Thubelisha staff. It was the responsibility of the Government to retrain employees to ensure that they were skilled. The Chairperson also said that after the recess the Members would visit the N2 Gateway Project.

"He conceded that for Thubelisha only to have right-sized 13 000 houses in six years was not an admirable achievement"

What does this mean? Simple - Thubelisha annual running cost for SIX years devided by 13, 000 houses = a massive amount of Rand on top of the subsidy amount

What is the cost to the South African tax payer???? Sick...