Minister of Human Settlements 2013 Budget Speech & Responses by ANC, DA, and IFP
Briefing
22 May 2013
Minister of Human Settlements, Mr Tokyo Sexwale, gave his Budget Vote Speech on the 22 May 2013
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1. Introduction
In his inaugural State of the Nation Address (SONA) President of the Republic, Mr Jacob Zuma made three pronouncements in respect of the then Department of Housing. These are, name change from housing to human settlements, policy change and the practicalisation of this new paradigm to transform the landscape of housing in South Africa forever.
Over the last four years, we remained seized with the implementation of this new mandate (Outcomes 8). Without any equivocation we state: A firm foundation has been laid towards a sustainable and integrated human settlements objective: Vision 2030.
Consequently, we have a comprehensive strategy premised upon three segments: Housing for the poor; for the GAP Market; and for the middle to the high income earners.
2. Implementing the Vision 2030 Strategy
2.1 Housing for the poor – grant beneficiaries
The main focus of our housing delivery strategy remains the poorest of the poor, many of whom are in and around informal settlements. At this stage, the following message must be clear: Our government does not build slums, imikhukhu, amatyotyombe! These squalid areas have their roots in the Wars of Dispossession, the 1913 Land Act whose centenary is commemorated this year and in subsequent apartheid policies. These policies gave rise to landlessness and joblessness which saw, and continues to see, the destitute escaping rural poverty towards urban areas.
Let me repeat what I said at the Nelson Mandela Metropolitan University concerning slums.
“They are essentially shanty towns littered across all provinces particularly around the more affluent Metros and municipalities. This therefore results in a situation of the classic undesirable urbanisation, which is driven less by economic growth and more by the rural-urban migration of the poor and jobless.”
Question: What steps have we taken to address this? As stated, our focus remains the poor. Over the last four years, our department has thus far, delivered, through grants, over 750 000 houses and housing opportunities.
This has made it possible, during this term of government, for the total housing provided since 1994 to break for the first time, into the 3 million units threshold for those earning from R3 500 to zero; to be precise 3,3 million houses and opportunities now at the cost of R85 000 each towards breaking the backlog of 2,1 million houses for 8 to 10 million people.
2.2 GAP Market Housing – The financially assisted.
The second element of our strategy concerns financial guarantees for affordable housing. This policy for citizens who earn above R3 500 to R15 000 was announced by the President in his 2012 SONA. The department’s task is to implement this Finance Linked policy which covers housing for, amongst others, school teachers and principals, police and members of the armed forces, nurses, firemen, prison warders, and blue collar workers. The good news is that this is now a reality and is being rolled out in all provinces via the National Housing Finance Corporation (NHFC).
Our implementing agency is the National Housing Finance Corporation (NHFC) through a financial instrument called FLISP – Finance Linked Individual Subsidy Programme. This supports all qualifying beneficiaries with the certainty of being granted loans, bonds or mortgage facilities by Banks and other financial institutions.
At this amount, beneficiaries have an option to buy an existing house, to build a new one or to purchase land. Therefore, to all those people lost in the GAP Market, earning too much to qualify for an RDP house and too little to access Bank finance we say: Rest assured. This government cares – we back you to get your bond!
2.3 Housing for middle to high income earners
We rely upon three instruments which are the Home Loans and Mortage Disclosure Act, the Community Schemes Ombuds Services Act and the Estate Agency Affairs Act. Thanks to the sterling work of the EAAB Administrator, Mr Taswell Papier, this structure has been stabilised.
In summary, the three elements of our strategy are all critical and applicable for different requirements within the comprehensive human settlements environment. Quite clearly, the continuous allocation of grants for free housing to the poorest of the poor is unsustainable going forward. Strictly speaking, this is more of a welfare programme approach than a long lasting housing policy as this programme is driven by the triple evils of unemployment, poverty and inequity. For as long as this is the case, so long shall this programme remain because we as the ANC government are committed to the poor and shall not abandon them through no fault of their own.
It stands to reason therefore, that given the current socio-economic circumstances, the most optimal and practical human settlements strategic approach is that of the enhancement of the Finance Linked programme.
It is noteworthy that the assistance we provide to our citizens in this regard – black and white – empowers them to become real estate owners; to become real participants in the capital markets as asset owners; real players in the property market as sellers or buyers; as well as in the financial markets where they can borrow against their assets to advance other economic interests. The need therefore, to speed up the issuing of Title Deeds to home owners can never be more emphasised.
3. Integrated human settlements development challenges
3.1 Deracialisation of Residential Areas
Top of the list of all budgetary challenges that confront the entire country is that of having to tackle the unique question of deracialising residential space. This, more than anything else, reflects the real evil of apartheid social engineering which motivated the United Nations in 1973 to pass a unanimous resolution declaring apartheid a crime against humanity. To undo this will take gigantic efforts over a long period, requiring major resources.
At this stage, it is noteworthy to indicate that the United Nations Habitat has requested South Africa to host its next conference on human settlements issues later this year.
Our residential deracialisation strategy is underpinned by seven elements.
3.1.1 Firstly, Deracialising White Suburbs by continuing to oblige Banks through Home Loans and Mortgage Disclosure Act (HLAMDA) and to provide loans to black people desiring to purchase property previously exclusive white suburbs.
3.1.2 Secondly, Inner City Housing
Spearheaded by our agency, Social Housing Regulatory Authority (SHRA), the department has over a period been purchasing many high rise buildings in the centres of major towns and cities. They are refurbished and transformed from office space to rented family units, some with an option to buy. This social housing is popular amongst young couples, students and single mothers.
3.1.3 Thirdly, Inner City Land
Through our Housing Development Agency (HDA), the department has acquired land parcels inside the cities from other government departments and State Owned Enterprises. These strategic pieces of land have been used for settling families.
3.1.4 Fourthly, Outer City Districts
Outer City Districts within the immediate proximity of city boundaries is land which is acquired from other Departments, or in partnership with the private sector, for housing construction. This is earmarked at integrating people within the expanding outer city parametres, a walking distance to vital amenities and facilities.
We congratulate companies that have come on board the Each-One-Settle-One campaign by building thousands of homes upon our subsidies for their employees, particularly in the mining industry.
3.1.5 Fifthly, “No-Man’s-Land”: Town and Township
The evil utilisation of land as a buffer by the architects of apartheid resulted in the creation of “no man’s land” between Johannesburg-Soweto, Cape Town-Gugulethu, Pretoria-Mamelodi, Durban-Umlazi, Port-Elizabeth-KwaZakhele, to name a few, resulting in the black areas having little or no amenities and facilities.
Our approach is to focus on building integrated human settlements in this space to locate people closer to the towns and cities.
3.1.6 Sixth, Townships Upgrading Strategy
It is inevitable that the black townships which were created as a reservoir of labour far away from white cities must be upgraded to improve the quality of life of the inhabitants. On our part, we empower municipalities through the accreditation process by giving them direct funds and authority to construct human settlements within their jurisdiction.
It is for this reason, among others, that in partnership with the Department of Higher Education and the Nelson Mandela Metropolitan University, we launched a four-year Bachelor’s Degree in Human Settlements Development, the first of its kind, which will later extend to Masters and Doctoral levels. The same degree will be offered by the Universities of Fort Hare and UNISA in the future.
3.1.7 Seventh, new non-racial towns and cities
Our mandate is to establish new non-racial towns and cities to concretise the principle of a united people in non-racial residential areas.
The new town of Lephalale – Joe Slovo City –under construction in Limpopo, driven by the economies of the Medupi Power Station, is an example in point.
3.2 Other Human Settlements development challenges
3.2.1 Other challenges confronting us are about greater coordination together with other related government departments responsible for big ticket items like bulk services, electrification, water and sanitation, sewerage plants, roads, transportation, etc.
The Presidential Infrastructure Coordinating Committee (PICC) whose efforts are beginning to bear fruit is the answer to the required coordination.
3.2.2 It is unacceptable given the fact after the passing of budgets by this House, we always speedily transfer funds to provinces and accredited municipalities. Many of them discharge their responsibilities perfectly well and are applauded. Yet some fail to spend.
Where some of them do, they sometimes resort to fiscal dumping which often results in shoddy workmanship leading to the wasteful practice of rectification amounting to billions of rands. The newly appointed Board of the National Homebuilders Regulatory Council (NHBRC) carries a huge responsibility in respect of safeguarding proper procedures in the construction industry countrywide.
Furthermore, mindful of the positive work by the Portfolio Committee led by Chairperson Dambuza in its oversight responsibilities, I urge the committee, including the Select Committee to redouble its efforts in coming down hard upon those responsible. On our part, we have taken some of the severest actions against those who engage in shoddy workmanship or fail to adhere to norms and standards on, for example, sanitation.
It is totally unacceptable that although we provide funds, responsible government entities and certain municipalities fail to even build a simple toilet whilst there is a serious stench of the bucket system in some parts of the country. Where they are built, some are left uncovered such as in the recent scandalous cases in Makhaza and Moqhaka, in the Western Cape and Free State respectively, even prompting the Human Rights Commission to get involved!
Our response of taking away funds from poor performers, as required by the law, will continue but is inadequate. Capacity issues need to be addressed. Most importantly, political parties must ensure that their deployees are capable – and there is nothing the matter with cadre deployment - and in turn such deployees should select appropriately qualified employees for the public service.
Our commitment and resolve to rooting out and exposing corruption remains undiminished. We continue to take a dim view of those housing beneficiaries who are engaged in double dipping – a practice of people coming from other parts of the country where services such as sanitation and housing have already been provided for them, yet they flock to informal settlements. This is wrong.
Others engage in the corrupt conduct of selling their houses before the expiry date, including to foreigners, with the help unscrupulous lawyers and fly-by-night estate agents. This is fraudulent. We implore members of civil society to expose such chance takers who, like many we have caused to be prosecuted, should face the full might of the law.
4. Budget focus 2013/14 to 2015/16
The department has been allocated a budget of R28.1 billion for the 2013/14 financial year representing an increase of R2,9 billion. The allocation is expected to grow to R32,7 billion in 2015/16. The conditional grants to provinces constitute a R53, 7 billion over the Medium Term Expenditure Framework (MTEF) period while the Urban Settlements Development Grants to municipalities will be receiving an allocation of approximately R30 billion in three years of MTEF.
The conditional grants and transfers to Human Settlements Institutions constitute 97% The total capital grant allocation amounts to R26.1 billion which consists of the Human Settlements Development grant of R16.9 billion, the Urban Settlements Development Grant of R9 billion and the Rural Households Infrastructure Grant of R107 million in 2013/14.
To conclude, the National Development Plan states: “The inefficiencies and inequalities in South Africa’s settlement patters are deeply entrenched. Bold measures are needed to reshape them.”
In the context of all we have articulated, the 2013-2014 human settlements budget is important to the extent that it’s a continuation of the critical stimulus we provide to the total economic development of the country. Our budget should be seen as a catalyst in this process including job creation through our twin empowerment and construction programmes of Women and Youth Builds.
Incrementally throughout our term, the budget has been earmarked primarily to address the poorest of the poor. In continuing to do so, let there be no doubt that our quest is not to be patted on the back for chasing numbers at the cost of quality.
We are mindful that in addressing the unique challenges of reengineering integrated human settlements in our country, there can be no socio-economic equality without providing our people with quality. On this, there is no compromise.
I thank you.
Speech by Hon Gloria Borman during the Budget Vote Debate on Human Settlement
Hon Chairperson, Hon Minister and Deputy Minister, Hon Members, distinguished guests, in November 2010 I travelled with a lady on a flight to Durban. We discussed the process for her employee Khanye to follow in order to apply for an RDP house. Living conditions where she was were not good - her young daughter was raped and one of her children could not live with her because there was no room for him. After attempts to see the councillor, unanswered phones in the housing department, meeting with the chairperson of the housing committee, the city manager and finally in desperation the Minister, I had to apologise that none of us in our high powered positions could assist Khanye to apply for an RDP house. This was the final e-mail I got from her in November 2012:
"The ward councillor has informed Khanye that in order to be considered she has to erect a shack of some sort. Khanye has been investigating opportunities which are not entirely suitable nor cheap, but I am happy to say that with our assistance, she has arranged for an area to be cleared, where she currently dwells under a friends roof. She has asked a neighbour to dig her a hole for an ablution which he did yesterday and this cost her R150.00? Tomorrow, if all goes according to plan (and hopefully it is not a scam), a "zozo" type hut will be erected on the cleared area and she will be the proud owner of a shack?
I still pray every night that she will be picked out from the crowd and find herself going `home` at the end of a long working day."
Thousands of people like Khanye are desperate for a house. But Mr Chairperson, it is not only the Khanye`s at the bottom of the pile who struggle to get a house. I want to focus today on what is called the `gap` market, those people who earn too much to qualify for an RDP house and yet they do not earn enough to qualify for a bond. The beneficiaries I am focusing on are our teachers, nurses, police, small business owners.
In his February 2012 State of the Nation address, President Zuma introduced the concept of a Finance Linked Individual Subsidy, known as FLISP, for people earning between R7000 and R15000 per month with a maximum subsidy of R87 000. FLISP assists people to make a deposit who can`t afford monthly repayments on a full mortgage bond.
Let me use an example. A property is selling for R300 000 - the maximum allowed under this scheme - you meet the qualifying criteria for the full subsidy of R87 000 - now you take R300 000 minus R87 000 (the subsidy) leaving a bond of R213 000. The bond repayments now become affordable! So FLISP is the department`s way of bridging the gap. The scheme is available through the National Housing Finance Corporation.
Chairperson, owning a property makes you stand 10 feet tall - it gives you dignity. For most people it will be their biggest investment. The latest research into the provision of affordable housing in the so-called `gap` market in South Africa shows that it is an important facilitator for opportunities and wealth creation. The study found that those who obtain homes in this sector move beyond viewing them as a mere shelter. Instead, their homes become assets which they can then use as collateral to obtain loans. This empowers them for entrepreneurship, job creation and access to higher levels of education. Increasing entrepreneurship in South Africa will also lead to increased employment, a key contributor to job growth globally.
The Estate Agency Affairs Board also has a very important role to play in FLISP. During a presentation to the Human Settlements Portfolio Committee, we established that they will be working with the NHFC to promote this market. They are ideally placed as they take their road shows out to include a special focus on the `gap` market. Estate Agents can identify properties falling within the R300 000 category and compile a data base of people in the `gap` market who qualify. Currently property investors are buying up these properties but this is an opportunity for the `gap` market to buy into the property market. Parliament will be working closely with the Board to ensure that opportunities are opened up for this market. The best of all is that the structure is all in place and will not cost the department anything.
Chairperson, I now want to move onto social housing. The Social Housing Regulatory Authority are producing excellent results in providing rental accommodation. It is estimated one in five South African households live in either formal or informal rental housing accommodation.
The influx of people from rural areas is leading to an ever increasing demand for rental accommodation.
Madulammoho, meaning living together, is a registered non-profit (section 21) social housing institution that was established in 2004 and operates seven housing projects in the Johannesburg inner city. It pioneered what is called the "stepped approach to housing", providing people with alternative housing options at different rental levels. It demonstrates that as people are supported and their skills are developed, they are able to earn more and, as a result, their housing options improve. However if incomes decline, tenants may need to seek a reduced alternative.
It provides for simple shelter, transitional housing, communal housing and social housing. This stepped approach provides for people earning between nothing and R7500 - the accommodation meets the needs of the people.
The ANC congratulate Madulammoho on winning two Govan Mbeki awards in 2013.
Corruption and maladministration is rampant in the housing sector and the ANC commends the Minister and his department for steps taken to root it out. Procurement, tenders, beneficiary lists, poor quality housing, have led to more than 50 housing projects with the value of R4, 2 billion being investigated. Nearly R30 million, lost through corrupt activities, has been recovered. There is still a long way to go but it is a start.
Former President Nelson Mandela during his acceptance of the Nobel Peace Prize in 1993 said: "We live with the hope that as she battles to remake herself, South Africa will be a microcosm of the new world that is striving to be born. Let it never be said by future generations that indifference, cynicism or selfishness made us fail to live up to the ideals of humanism which the Nobel Peace Prize encapsulates."
Chairperson, may I address the Minister: Your department has been `remaking` itself. Can you assure this House that future generations will not blame us for failing them in the delivery of `human settlements` because of our indifference, cynicism or selfishness. The Khanyes, the teachers and nurses are depending on you.
You dare not fail them and we as parliament dare not fail them!!
Stevens Mokgalapa, Shadow Minister of Human Settlements
Highlights:
The Department underspent approximately R4 billion of its budget last year;
Together, the Eastern Cape and Limpopo have failed to spend R578 million of the funds allocated to them;
Only R2 billion of the R7 billion allocated to the Urban Settlements Development Grant (USDG) has been spent;
Almost a billion rand is wasted on rectification every year;
93% of the Western Cape’s Human Settlements’ is spent on people earning less than R3,500 pm;
The amount of toilets in Western Cape informal settlements have more than tripled (10,591 to 34,225) ensuring access to sanitation for over 88% of its population;
The Western Cape already leads the county with 99.1% of households having access to piped water and 96.9% to toilet facilities.
Thank you, Chairperson, Minister, Deputy Minister and esteemed guests
Over the years, the DA has not only acknowledged every South African’s Constitutional right to adequate housing, but strived to deliver access to housing opportunities to all of those within its constituencies - 93% of the Western Cape’s Human Settlements’ R1.7 billion budget is spent on those earning less than R3,500 pm.
During this time we have come to realise that housing is a complex issue and that the national government’s ‘one size fits all’ approach to subsidised housing is unsustainable and in need of bold reform.
Chairperson, allow me to highlight some of the concerns I have with the Department of Human Settlements.
Last financial year the Department once again failed to achieve what were unrealistic and unachievable targets. Even the Auditor-General has highlighted the fact that the Department's failure to adhere to ‘smart principles’ has led to poor planning, immeasurable and unachievable targets and rampant underspending.
The Department underspent approximately R4 billion of its budget last year. The Eastern Cape and Limpopo are two major culprits and together have failed to spend R578 million of the funds allocated to them.
Informal settlements continue to mushroom at an alarming rate throughout South Africa and the Department has failed to reach its upgrade targets. Only 141,923 (35%) out of 400,000 households earmarked have been upgraded and over R886 million of the Human Settlements Development Grant (HSDG) has been returned to our National Treasury - which is a travesty considering the daily service delivery protests we all witness.
The Urban Settlements Development Grant (USDG) still persists to be underspent and unable to deal with basic service delivery backlog in metros. Of the allocated R7 billion, municipalities have only managed to spend a mere R2 billion.
The infamous Rural Households Infrastructure Grant (RHIG) is another programme that fails to impress. Since its inception in 2009, it has suffered from chronic underspending and claims to have ‘saved’ R164 million this past financial year, yet there are thousands of people in rural South Africa who are still without basic sanitation. The programmes appointment of six new service providers was too little too late since the grant will effectively come to an end next year, without its purpose served.
Chairperson, the Department’s inability to monitor and evaluate its programmes to ensure that the funds transferred to provinces and municipalities are properly spent is a serious and expensive problem. More oversight is needed by the Department to ensure that the money transferred is actually spent on delivery. Even the Financial and Fiscal Commission (FFC) agrees that the Department needs a realistic revision of its targets, in line with funding, performance, costs and capacity.
Chairperson, the Departmental Internal Audit Committee has also highlighted the challenge of supply chain management, lack of internal controls, lack of adherence to National Treasury regulations and the ineffective IT and data systems, as well as the ineffective risk management. And most importantly, that performance targets are not measurable. How can the Department ask for more funds or reward its employees if it cannot measure their performance?
Minister we agree that the gap market and the Finance-Linked Individual Subsidy Programme (FLISP) is long overdue and the future of housing in South Africa. However, only 57 applications from all 13 provincial projects were approved in the last financial year which is unfortunate considering the demand for this service. We would like to see this programme rolled out and opened to the public and not restricted to its current provincial project-linked implementation.
As a counterpoint, the allocation for People’s Housing Process (PHP) in the Western Cape has increased from 25% of the province’s Department of Human Settlements’ budget in 2010 to 40% in 2012/13.
We acknowledge that over 7,000 hectors of land across South Africa has been released for housing development but we are concerned that the amount of land released has not led to significant housing developments on the ground and feel that the Minister needs to engage the Public Works minister on this issue.
Chairperson fraud and corruption remain a major source of concern. The fact that there is no corruption hotline to report corrupt activities shows your Department’s lack of commitment to fight this scourge. Supply chain management - especially the awarding of tenders - remains a problem. Recently the Public Protector has revealed that almost 10% of complaints received by her office were related to corruption and maladministration in low-cost housing delivery. The findings included:
Disproportionate numbers of procurement contracts awarded to the ANC members;
Bills received for houses that were not built;
Municipal inspectors failing to issue occupant certificates;
Corrupt activities in allocation of houses to friends/families;
Shoddy workmanship, the illegal sale of land and houses and illegal fraudulent allocation of houses to government and municipal officials remain huge problems.
We welcome the work done by the Special Investigating Unit (SIU) to root out corruption within the Department. We are however concerned about the recovery strategy as it allows convicted officials to simply sign Acknowledgement of Debt (AOD) agreements and continue working for the Department. We would like to see this policy reviewed and officials found guilty of corruption dismissed. Also, that the Minister work closely with public service and administration and the Department of Co-operative Governance and Traditional Affairs (DCOGTA) to deal with – and possibly blacklist – provincial and local government employees who are found guilty of corruption.
I have conducted nationwide oversight visits and unearthed shoddy workmanship; dodgy contractors who do not deliver are bailed out by the government’s rectification programme, wasting tax payers’ money in the process. We need to hold contractors accountable by recouping funds, blacklisting, and making them pay for rectification. Poor workmanship is corruption and almost a billion rand is wasted on rectification every year.
Chairperson, sanitation remains one of the biggest shames of this Government and Department. Twenty years into our democracy and there are still people using the bucket system, pit latrines and resorting to open defecation. 2.2 million South Africans still dream of owning a toilet. When will people’s dignity be restored? The government failed to eradicate the bucket system by 2007 and will again in 2014. In the meantime, people’s rights are being violated and they are being forced to use the bush, plastics - some even get electrocuted while relieving themselves and others like the residents of Moqhaka are charged for sanitation services they have never received.
Here are the facts on Sanitation in South Africa:
4.8 million South Africans still use open defecation and the bucket system;
1,092 million people use the bucket system;
2.7 million people have no access to toilets, and 1 million people use other means;
1,000 deaths are caused by 7 waterborne diseases at an annual cost of R8 billion to Department of Health.
According to the World Health Organisation (WHO), worldwide parasitic worms infect more than 1 billion people and 1.8 million children under the age of 5 die every year due to inadequate sanitation, hygiene and unsafe water. According to UNICEF more than 15% of girls in developing world are absent from school due to lack of adequate sanitation.
There are streets in the North West literally flooded with sewage and reports of communities with two thousand people sharing two toilets.
Minister, people are literally dying from lack of adequate sanitation and it is time you did something about it.
Dry aerobic sanitation is cost-effective, provides healthier and safer environments, and can save water. There are many alternatives that the Department can explore. However, it seems that there is a lack of will within your Department.
Minister, sanitation is your legacy. We are still awaiting legislation from your Department regarding the mandate of sanitation and want to know how many more people should die, children get sick, or Human Rights Commission recommendations and reports be brought to government before you act on this important national issue? The Human Rights Commission in essence is doing your job, Minister.
I would like to take a moment to point out that the Western Cape already leads the county with 99.1% of households having access to piped water and 96.9% to toilet facilities. To ensure that everyone has access to basic services, the Access to Basic Services Programme was launched in January 2012 and by December 2012, the program had ensured that an extra 4,185 households, or 10,995 people, have benefitted from access to clean water, and an extra 3,170 households, or 8,225 people have benefitted from access to sanitation.
The amount of toilets in The City of Cape Town’s informal settlements have more than tripled (10,591 to 34,225) over the past six years, ensuring access to sanitation for over 88% of its population.
We welcome the City of Cape Town’s initiative to address the bucket system by using Portable Flush Toilets (PFTs) to ensure that its citizens’ dignity is restored and upheld while long-term alternative solutions are sought.
The DA agrees with the NDP on the need to have inclusive development by ensuring that the apartheid spatial patterns are reserved. We need effective urban development and coordination of planning for housing provision and infrastructure support for bulk and basic services. That’s why we support a need for a paradigm shift and adoption of innovative alternative housing options; not the current one size fits all policies.
DA alternative policy proposal are:
Smart settlements should be developed for energy efficiently and environmental sustainability;
Site and service with incremental top-up structure that is supply driven;
Encourage self-help building mechanisms;
Consideration of different forms of tenure and incentives other than ownership;
Rental option (most renters are low income earners);
Housing vouchers that enhance accessibility and affordability;
Investment intervention programmes that stimulate increased investment into housing e.g. tax rebates.
Different households in different housing circumstances require specific housing interventions. The state must clarify its role in access to housing.
Poor planning, lack of capacity, alignment, coordination and infrastructure are just some of the Departmental issues prohibiting public opportunities to housing access.
During a recent visit to my constituency I had a public meeting in a Tshwane informal settlement (Tswaing View), where one of the community members community said: "We were promised a better life in 1994 when we voted for the ANC but live under inhumane conditions like this; no water, no electricity, no toilets. The ANC has let us down.”
This, Minister, is an outcry from the people of South Africa who feel that government does not care about them and has neglected them. They still dream of the better life they were promised. And where you have failed to deliver on those promises, we will hold you accountable.
I thank you.
Patti Duncan, Shadow Deputy Minister of Human Settlements
Highlights:
There are numerous vacant posts within the Department of Human Settlements' top tiers;
Supply chain management is ineffective;
There is a noted lack of a functional IT unit ;
There is a noted lack of a Monitoring and Evaluation Unit;
To date, thousands of beneficiaries are still without title deeds and houses;
The Western Cape has reduced its Title Deeds backlog to 28%, and has issued over 20,000 Title Deeds in the process.
Chairperson, the fourth Parliament is nearing the end of a five-year period that has been marked with both successes and failures within the National and Provincial Government spheres.
Over the years we have had the opportunity to measure the performance of leaders across these spheres, especially their commitment to accountability and delivery, and whether they had the political will to transform the Human Settlement’s sector. And today is such a day.
Honourable Chairperson, the Minister of Human Settlements, Tokyo Sexwale, paid the Portfolio Committee on Human Settlements a visit on 15 May 2013, and provided an overview on critical issues which were seen as real challenges for the Department in the financial year under review.
The first issue I want to address relates to the funding model on programmes within the Human Settlements Department. At the moment there are a myriad of funding laws and policies under one department while the actual function is under another, and although a basis has been laid in terms of policy, the above still tends to have a negative impact on the current funding model. Chairperson the Minister and his department need to be proactive and ensure that all relevant departments are held accountable until a new approach can be brought about, if any.
Let me remind the Minister and the Department that in my speech last year, I said that South Africans deserve better, particularly the delivery of quality housing for all through an integrated approach across governmental departments. Human Settlements, is only one of many departments within government that is meant to deliver sustainable livelihoods to South Africa’s citizens. So Chairperson, the Minister and his Department must further ensure that Inter-Governmental Relations (IGRs) are affective. After all, they play a crucial role in any well-coordinated delivery strategy and can be the difference between failure and success.
It was quite encouraging when the Honourable Minister said that the power of accountability was in planning and I absolutely agree with him. However, after almost two decades some of the most critical issues which relate to a sound and well-planned administration are absent within the Department. Key posts in the top structures are still vacant, supply chain management is ineffective, there is a noted lack of a functional IT unit as well as a monitoring and evaluation unit.
This is unacceptable considering the high levels of unemployment which persist in our country, particularly among South Africa’s qualified youth.
The next challenge within the Department is the huge Title Deeds backlog. Chairperson we acknowledge the fact that in terms of the RDP housing developments, municipalities are at the delivery point. However, the Department should strictly monitor and evaluate municipal progress and failures made to ensure money provided for this purpose is used in a responsible manner. If not, measures have to be put in place to curb unnecessary delays. The Department should also engage with relevant stakeholders to find innovative and effective solutions and applying them.
Chairperson, housing challenges can be reduced if the registering of RDP houses and developments was quicker and more effective.
According to the Housing Act, beneficiaries must receive title deeds within three months of handover, and may not sell these homes within eight years. Illegal occupancy of RDP houses is a serious problem and the Department needs to assist and ensure the rightful beneficiaries are traced and their title deeds handed over, as well as take action against those who illegally sold RDP houses.
To date, thousands of beneficiaries are still without title deeds and houses, while heartless opportunists exploit their desperation by “buying” and “selling” RDP homes and stands illegally.
This is in stark contrast to the DA-led Western Cape, where its Department of Human Settlements initiated a study in 2011 to determine the extent of its Title Deeds backlog. Since then, the province has reduced its Title Deeds backlog to 28%, and has issued over 20,000 Title Deeds in the process.
I wish to thank both the Public Protector and South African Human Rights Commission (SAHRC) for highlighting this issue in their respective presentations to the Portfolio Committee. It is commendable that our Chapter 9 institutions play their role and hold government to account on behalf of all South Africans.
I have taken the opportunity to write a letter to the Public Protector in which I formally requested that a full, national investigation be conducted - including all nine provinces and the country’s 283 municipalities - to determine the backlog in the transfer of title deeds.
Chairperson the national Title Deeds backlog is currently prohibiting thousands of South Africans from owning property and participation in the mainstream economy. These deeds provide holders with security, proof of residence, collateral when procuring loans and credit, and allow them to invest in their future.
Honourable Minister, I urge you to tighten the efforts on the title deeds backlog to ensure that all our people benefit economically and have an opportunity to rise above all expectation for a better tomorrow in a greater and prosperous South Africa.
Enkosi.
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Budget Vote Debate 31 - Human Settlements |
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