Meeting Summary
Department of Human Settlements briefed Members on its international commitments and agreements. The Department had to serve the interest of the country through international advocacy and technical assistance. Some of the South African priorities of foreign policies were strengthening South-South and South-North co-operation, and consolidation of the African agenda. The Department had made agreements with, among other countries, Angola, China, Cuba, Denmark, and the Netherlands. It had also made an agreement with YouthBuild International in collaboration with the National Youth Development Agency and Habitat for Humanity in Gauteng. In this Agreement 176 young people had been trained in construction related skills and 100 units had been completed. The Department had participated in international debates and obtained a finer understanding of Human Settlement issues that did not rely on Northern perspectives and expertise.
The Committee was really concerned about an agreement with China as Members found out that the houses were for sale and the Chinese brought their own material for building and were not prepared to transfer skills to South African citizens. The Committee also noted that most of the agreements were never tabled before Parliament. The Chairperson believed that the Department was not doing its job properly and that led to the Department not reporting sufficiently to the Committee.
Meeting report
Introduction
The Chairperson opened the meeting by recapping on what the meeting was about. She reminded the Committee and the Department of Human Settlements (DHS, the Department) what it had requested from the Department. She also informed the Committee that the Department had apologised for not submitting the quarterly report to the Committee.
Department of Human Settlements briefing
Ms Monika Glinzler, Acting Chief Director: International Relations, DHS, stated that the rationale for international co-operation in human settlements was to receive technical assistance and knowledge on international best practise. Another motivation was to form part of international debates on human settlement issues to defend our constitution and policies and to provide leadership and an example. DHS wanted to develop an international programme with dual functions to serve the interest of the Department in achieving its mandate of creating sustainable human settlement. It had to serve the interest of the country through international advocacy and technical assistance. Some of the South African priorities of foreign policies were strengthening South-South and South-North co-operation and consolidation of the African agenda. South Africa also prioritised participation in the global system and strengthening of political and economic relations.
DHS pursued and built relationships with partners and donors. DHS was seeking partnerships for building institutional capacity in Africa to deal with human settlements issues. The Department had made agreements with, among other countries, Angola, China, Cuba, Denmark, and the Netherlands.
The Department’s Memorandum of Understanding with Cuba was that South Africa was to benefit from 53 Cuban engineers and architects who had to work in seven provinces in phase 1. By 2011 there were 23 Cuban technical advisors employed in South Africa. These Cubans had to provide training manuals for builders. On the other hand South Africa was required to resolve all issues related to the implementation of the Cuban Technical support programme. South Africa had to manage the content of the programme through the national committee to insist that the envisaged skills transfer took place.
Over R1 billion in guarantees, loans and investments into the social housing sector in South Africa was one of the benefits that were derived from the agreement on co-operation in social renting housing with the Netherlands. Four Dutch advisors assisted in social rental housing programme implementation support. South Africa had to learn from the Dutch model and experience. In this agreement South Africa was required to prepare and implement annual implementation plans. South Africa had to hold regular oversight committee meetings on implementation had to fund the in-country costs for short term technical advisors, for example transport and accommodation.
R20 million for energy-efficiency in low income housing in the N2 Gateway project was in the Department’s Memorandum of Understanding with Denmark. This project was entered into by the National Treasury. South Africa was to find innovative ways in which to finance energy-efficient improvements. South Africa was required to deal with difficult implementation issues due to pilot project location and the context of human settlement development in N2 Gateway. This project was seriously hampered due to delays in the construction of houses on the chosen site.
The Department benefited from low income houses constructed free by the Chinese government to be sold as affordable housing and proceeds were to fund further low income housing projects in Thaba Chweu municipality. The Department had to learn from the Chinese construction techniques in terms of reducing waste, reducing errors and high quality construction for low cost. South Africa was required to oversee project implementation as the Municipality had failed to make significant progress in the 10 years the agreement had been put in place. The Department also agreed to reduce the number of units to be constructed from 400 to 170 for the housing project in Graskop to accommodate quality improvements and escalating input costs.
The Department’s Memorandum of Understanding with YouthBuild International (a United States organisation funded by the US Department of Labour) provided an opportunity to pilot the youth in human settlements in cooperation with the National Youth Development Agency (NYDA) and and Habitat for Humanity in Gauteng. DHS was required to undertake activities to mobilise and train youth in construction and related skills. DHS was also required to provide skills and roll-out the model beyond Gauteng. Currently in this project 176 youth had been trained in construction-related skills and 100 units had been completed.
The Department had participated in international debates and obtained a finer understanding of human settlement issues that did not rely on Northern perspectives and expertise. This also gave practitioners and academics and community organisations the opportunity for knowledge exchange and networking platforms. South Africa had to participate in working group meetings in accordance with the India, Brazil and South Africa Dialogue Forum (IBSA) schedule of meetings and had to host meetings and lastly undertake actions as determined by the work plan of the working group. The 2012 work programme had to be finalised during the 2011 summit meeting.
A memorandum of understanding on co-operation between South Africa and Angola in the field of human settlements offered the chance for growth of South Africa’s construction and property developments sector. Technical visits had been undertaken by both parties to exchange information and experience.
In the United Nations Human Settlements Programme (UN-Habitat) agreement South Africa had to translate International policy direction into South Africa’s human settlements policy. South Africa had to also subscribe to UN-Habitat norms and standards and to support South-South initiatives.
An agreement had been entered into between South Africa and Norway to pilot the co-operative model. The Norwegian Federation of Co-operative Housing Associations was tasked with being the implementation partner on the Norwegian side. 1 000 units had been developed. Finance was accessed through a donation from the Norwegian Aid Agency. The targeted beneficiaries in this agreement were households with R1 200-R3 500 income and female head households. There were some challenges faced: sustainability, turn-around strategy, over-reliance on donor funds and a change in donor environment which made it more difficult to access the donor funding.
Discussion
Mr K Sithole (IFP) wanted to know who was benefiting in the R1 billion guaranteed loans. He also wanted clarity as to how much was used by the Department of the R17 Million that South Africa was given by Denmark. With the China Mpumalanga Graskop Housing Project the Department had stated that China was going to build 200 houses but, in today’s presentation, the number had decreased to 170. Mr Sithole wanted to know why there was a decrease in the number.
Ms Glinzler explained that agreements with components were managed by the National Treasury and the Department would be given a certain percentage of the money annually; that was what was happening with the R17 million from Denmark. The money was not used on building the houses but was used on energy enhancements. She said that one of the delays in the China project was caused by lapsing of time while looking for certain expertise. Lastly Ms Glinzler promised the Committee that she was going to check and then inform the Committee why there was a decrease on the number of houses on the China Project.
Ms M Njobe (COPE) wanted clarity on the clearance of the material in the Graskop project as to whether the Chinese brought their building material and what was that building material. Ms Glinzler mentioned the youth programme in Johannesburg in her presentation. Ms Njobe wanted to know when the youth programme going to be introduced into other provinces. She also wanted to know as to where the Innovation Cuba houses were built in South Africa as per agreement with Cuba. She asked if there was a lesson from Angola’s human settlements. She asked the Department to explain why the Norway project had failed.
Ms Glinzler stated that in the agreement the Chinese had to bring their material because there was no money transferred from China to South Africa.
Ms A Mashishi (ANC) wanted to know which cities benefited in the City Alliance Projects.
Ms Glinzler mentioned the cities of Tshwane and Port Elizabeth as some of the cities that benefited from the City Alliance Project.
Ms D Dlakude (ANC) wanted clarity as to whether there was a clause in the original agreement on the Graskop housing project stating that China was bringing its own material. Secondly she wanted to know if the houses built by the Chinese were user friendly in terms of accommodating disabled and old people.
Mr A Steyn (DA) had noticed that in most of the agreements into which South Africa had entered, South Africa was a beneficiary and not a donor; he wanted to know if there were agreements in which South Africa was a donor. He asked the Department to explain how the transfer of skills was managed. He reminded the Department that the Committee was still waiting for proof that the energy efficiency solar systems that were installed in the housing project with Denmark in the Eastern Cape Province were working properly. During the Committee oversight visit to that project Members noticed that the solar energy system was not installed in the proper direction.
Ms Glinzler stated that there were very few agreements where South Africa was a donor. She mentioned an agreement between South Africa and Democratic Republic of Congo but the agreement had already expired. The second agreement was between South Africa and Angola.
Mr Steyn asked how the Angola human settlement agreement was facilitated by South Africa. He wanted to know when the youth project was completed.
Ms G Borman (ANC) asked if the list handed by the Department to the Committee was a complete list of all the agreements that dealt with human settlements between South Africa and other countries. She wanted clarity as to why the China housing project took so long to be completed. She asked the Department to explain how was the money from Denmark used and if it was accounted for. Ms Borman also wanted to know which criteria were used in drawing a Memorandum of Understanding which would benefit our country focusing on things like creating jobs and transfer of skills.
Mr J Matshoba (ANC) wanted to know why the Cuban houses in the Sakhisizwe municipality at Elliott in the Eastern Cape were not finished.
The Chairperson asked the Department to explain to the Committee the role of the World Bank in the human settlements projects. She also wanted the Department to provide the Committee with explanation on the role played by South African architect designers on assisting in the designs of houses in those different projects. She also wanted to know the impact of the Cuban training that was given to South Africa while it was not accredited in South Africa. The Chairperson asked the Department to supply the Committee with the list of the locations where the seven housing co-operatives were situated.
The Department could not answer all the questions because the Committee kept on interrupting them with more questions.
The Chairperson told the Department that it had to do its job accurately and properly in order for the Committee to assist it. She also explained that the Committee did not call the Department because it wanted information but it wanted to see the Department explaining its actions and giving reasons for its decisions, because the Committee did have means to get all the information needed.
The meeting was adjourned.
