Western Cape Department of Infrastructure response to oversight visit; DHS update Mawiga Ministerial Project and Mawiga Four Petitioners

Meeting report

The Chairperson struggled with connection issues, so Mr A Tseki (ANC) was appointed acting Chairperson.

Ms N Tafeni (EFF) submitted an apology, and Dr N Khumalo (DA) said she needed to be excused early.

Western Cape response to April oversight visit

Ms Kahmiela August: Chief Director: Human Settlement Planning, Western Cape Department of Infrastructure, presented responses the questions raised during the oversight visit to the province on 17 and 18 April. She was supported by Mr Roy Stewart, Chief Director: Land and Asset Management; Mr Brian Denton, Chief Director: Performance Management; Mr David Alli, Acting Director for Planning; Mr Louis Welgemoed, Regional Planner for the Breede Valley; and Mr Benjamin Nkosi, Director for Strategy.

Ms August said the list of questions sent to the Department had been grouped into topics to make the presentation easier to follow.

The presentation touched on the Integrated Human Settlements Strategy, delivery of targets, service delivery objectives and the Joint District and Metro Approach (JDMA).

The Committee was taken through the Provincial Housing Demand Database, budget and expenditure and the Title Deeds Restoration Project:

• Title deeds delivered since inception of TRP: Approximately 38 000
• Challenges:
  • Deeds Data dump – Provinces must obtain Deeds reports to verify transfers
  • Municipal Capacity – Municipalities do not have the required dedicated resources. Allocated funding cannot be used to appoint staff
  • Contested title deeds – original beneficiaries not in occupation to complete transfers
• The Provincial Minister of Infrastructure has approved a Title Deed Action Plan which addresses the challenges
• The Department is in the process of implementing that plan to reduce the backlog
• This will supplement the proposed Vulindlela plan (National Department of Human Settlements)

 Members were updated on mud houses and asbestos roofs:

• Existing approaches to upgrading mud houses:  Upgrading single houses in the tender of large housing projects as infills – Consolidation Subsidy used – Beaufort West Municipality
• The verification on asbestos shows that we have in the region of 84 577 units with asbestos roofs

The presentation addressed the conversion of hostels into community residential units and progress mae in upgrading informal settlements:

• Through the Informal Settlement Support Programme (ISSP) launched in 2016, the Western Cape province has exerted pressure on municipalities to accelerate informal settlements upgrading hence households in our informal settlements have enjoyed significant level of services in comparison. The Covid 19 circumstance has impacted the momentum and gains over the years
• The Department has identified and categorised informal settlements across the province, based on its settlement count, level of existing services, access to available land for decanting, availability of bulk services etc. Based on these assessments, each settlement is earmarked for either in-situ upgrading, relocation, basic services or full upgrade with formal sites
• Transversal coordination of interventions towards informal settlement upgrading through the Quarterly ISSP Forum
• Foster community participatory planning in the upgrading processes
• Build learning and Best Practice materials to enhance understanding of informal settlement upgrading
• Prioritise funding for informal settlement upgrading
• Utilise civil society/NGO to bridge the trust deficit in communities

Land invasions:

• The Department has two security service contracts in place to respond to land invasions threats
• These services come at a high cost: 2022/ 2023 expenditure R161.7 million
• The Department cannot extend security services to municipalities that struggle to fund their own appointments
• The Western Cape Government has established a Workgroup (province and municipalities) with a view to providing a centralised response to land invasions

 (See full details in attached presentation)

Discussion

Ms M Makesini (EFF) inquired about the existence of any plans to remove the asbestos from the houses, and when it was scheduled to be removed. She also expressed interest in knowing whether the Department intended to assist the people within the Housing Development Agency (HDA) bungalows, as she believed they deserved better.

Ms N Sihlwayi (ANC) acknowledged the presence of a budget for implementing the upgrading of informal settlements. However, she pointed out the difficulty in executing the upgrading process.

She said the presentation did not address the issue of mud houses. She wanted to understand the Department's strategy for dealing with mud houses and the measures they intended to take. She also questioned its strategy for addressing block projects, and suggested learning from municipalities that had successfully tackled similar issues to adopt a holistic programme.

She expressed concern about the situation involving people with disabilities, stating that families with disabled members faced dehumanisation. She mentioned a specific case where a double-storey house had been built, and disabled individuals were forced to sleep in the sitting area or confined to a room upstairs without any opportunity to leave. She believed that these individuals needed to be relocated to stand-alone houses.

Regarding the bungalows, she raised the issue of their dangerous condition, and questioned when they would be removed and the plan for their removal. She also mentioned another project in Worcester, which she claimed had inadequate toilets and bathrooms for young children. She questioned the approval process and the role of the NHBRC in allowing such dehumanising houses to be built for mere coverage.

Mr C Malematja (ANC) voiced his concern about families being left outside in the cold due to the project being blocked. He emphasised the need for a clear strategy and timeframe to resolve the issue.

Mr B Herron (GOOD) inquired about the seven municipalities mentioned concerning the backlog on title deeds. He mentioned a proposed policy on contested title deeds adopted by the city council in 2018 and sent to the Western Cape. He sought information about the outcomes of that policy and the proposed process plan, expressing uncertainty about whether the Western Cape Human Settlements Department had supported it.

Mr L Mphithi (DA) expressed his interest in understanding the historical challenges associated with the allocations received by the province from the national government. He also inquired about any specific incidents that had contributed to the process of addressing informal settlements. Additionally, he sought clarification on how the densification greenfields project would accommodate backyard dwellers.

Dr Khumalo noted that she had not encountered any informal settlement support programme (ISSP) teams that supported municipalities that faced challenges in utilising grants and implementing projects, whether in informal settlements or under the USDG. She wished to know the effectiveness of this mechanism in supporting municipalities to deliver projects successfully.

She also raised a query regarding land invasions. While acknowledging that the department was taking steps to address the issue, she sought information on the costs associated with securing these projects. She assumed that the cost of security impacted the overall project budget, and consequently affected the quantity of projects that could be delivered. If the security costs were included in the project budget, she was curious about the implications on project targets. On the other hand, if separate funds were sourced for security, she wanted to know the process for acquiring those funds.

The acting Chairperson posed a question regarding the block projects, and asked for clarification on the number of projects that had been quantified. Referring to the Breede Valley petition, the appointment of a project steering committee (PSC) had been mentioned, which could indicate that consultation with the committee was taking place, or that the counsellor was leading the PSC.

Response

Mr Alli expressed his desire to discuss the effectiveness of the ISSP. He explained that the ISSP coordinated various departments at the provincial level to intervene in informal settlements. They have observed a positive engagement from municipalities, with many submitting applications and following the provided guidance. In terms of effectiveness, non-responsive municipalities were being individually addressed. The ISSP dealt with applications based on the information received from the municipalities, sometimes assisting in compiling the applications and reviewing them to respond to funding requests. Progress had been seen in many other municipalities.

The Breede Valley was mentioned as a case in which the ISSP had provided support, and they had received an application for assistance.

Regarding food gardening, the ISSP took a transversal approach that involved different departments, which responded based on requests from informal settlement communities and the needs expressed by municipalities.

A series of meetings were held to discuss the requirements concerning the Knysna bungalow. Technical assessments, beneficiary assessments, and options assessments were needed to evaluate the availability of land for relocating the bungalow. The HDA was currently conducting these assessments and checking the feasibility of relocation. The final report mentioned earlier would provide clear guidance on the required funds and the urgency of the situation. By that Friday, they expect to have a clear plan for the first phase of intervention. The national department had committed emergency housing grants to fund the intervention in the Knysna bungalow.

Mr Rob Smith, Director: Grant and Municipal Performance Management, Western Cape Department of Infrastructure, addressed the topic of block projects. The national Department provided a list of projects, and an analysis was conducted to identify projects that had not received payments for several years. Among that list, they found 38 projects that needed to be closed or completed. Additionally, funding for title deed restoration needed to be resolved. Approximately 20 projects were related to planning, and there were emergency housing programme (EHP) and temporary relocation area (TRA) projects, as well as individual houses that had undergone rebuilds due to fire and flood damage. These projects need to be checked and signed off if completed.

While many projects on the list had been completed, not all transfers had been finalised. This was related to the title deed restoration programme. The main focus was on unblocking and progressing the 38 identified projects. Some of the reasons for delays include parts of a site being invaded or, in one case, a contractor terminating their involvement due to safety concerns in the airport precinct. The team would prioritise these 38 projects.

Mr Stewart responded to the backlog question, saying that the seven municipalities with outstanding issues were Saldanha, Knysna, Stellenbosch, Theewaterskloof, George and Drakenstein. These municipalities were ranked based on the number of outstanding matters, and the department prioritised their resolution. Addressing these issues would have a significant impact on reducing the backlog.

He said the City of Cape Town had provided a policy framework, which had been reviewed by the Department's legal services. However, both the Department and the City agreed that the contested title deeds issue could not be resolved solely through a policy framework because it was rooted in legal foundations. Various challenges would arise, such as subsidy allocations to no longer present beneficiaries, the nullification of existing deeds of sales, and other legal complexities. To address these challenges, the Department partnered with the Centre for Affordable Housing and established guidelines for handling these matters.

These efforts were aligned with the intentions of the national Department of Human Settlements, which had engaged with one of the municipalities in the southern Cape and was in the process of drafting a guideline. The focus was on formalising a legal document involving both the national Department and the City of Cape Town.

A decision had been made at the national level regarding land invasions, but the administrative process to determine the costs associated with projects had not yet been implemented.

The Department had completed the costing for the past financial year, which amounted to R160 million. Their main focus was on reducing the actual project costs. During the COVID-19 pandemic, they faced land invasions and project invasions, resulting in spending approximately R350 million. Through interventions, they managed to reduce this to R160 million, and they aimed to further reduce it by filling vacant units. The majority of costs were related to projects and vacant units, so filling those units would lead to cost reductions. They had their own response unit for land protection, and prioritised swift action to remove invaders. They were also in the process of capitalising on projects to return funds to the grant, but this was an ongoing administrative process.

Mr Denton addressed the qualifications for disability, mud houses, asbestos, and the 50/50 backyard question. He explained that the Department had developed provincial guidelines aligned with municipal allocation policies, prioritising disabled individuals based on national directives. They monitored the number of participants and applied national norms for house size (45 square meters) or additions to the house, depending on the severity of the disability. They also considered applications from households where a family member became disabled after the project was completed, and they updated the subsidy to accommodate necessary additions to make the house more comfortable.

Regarding mud houses in the Western Cape, a survey had identified 427 units, and the approach followed was to demolish the existing structure if the person qualified, and then build a house in accordance with national norms and standards. However, a challenge arises when some owners refuse to demolish their mud houses because they are often larger than the offered 40 square meter beam houses.

A survey identified 160 693 units, excluding privately-owned homes, regarding the removal of asbestos. Due to the high costs involved, an implementation plan was yet to be developed. Given the financial constraints, building houses for the next five years would not be possible. Therefore, clear guidelines were needed to determine whether asbestos should be removed only if it posed a problem. Some people had been living with asbestos roofs for many years, and the issue may be limited to areas where it was broken or where there were no ceilings according to old norms and standards. The significant challenge was the exorbitant cost associated with asbestos removal, as specialists were required, and disposal costs were approximately R50 000 per unit.

Regarding the 50/50 backyard policy, he said provincial policy guidelines were in place, and municipalities had the authority to implement the policy based on their local guidelines. The City had incorporated the 50/50 policy into their allocation policy. Although detailed information was not provided, it was explained that 50% of the beneficiaries came from informal settlements, while the other 50% came from backyards. This policy was integrated into the local guidelines of municipalities.

Mr Welgemoed responded to inquiries about the bathrooms in Worcester. He said the initial approved specification for the project consisted of a two-bedroom, 40 square-meter unit with a bathroom and an installed shower. The design team had included a shower tray in the design, resembling a raised shower, which served multiple purposes such as bathing a child and washing clothing. The inclusion of this feature was within the project's budget at that time.

The Committee expressed dissatisfaction with some of the responses, and decided to formally request further specific information through a written request.

Ms August said that the Department welcomed the specific questions and acknowledged that their previous responses may not have fully addressed the depth of information required. She assured the Committee that a comprehensive written response would be submitted after receiving the detailed questions, emphasising that their previous responses were not intended to show disrespect.

Progress report: MAWIGA Ministerial project and MAWIGA four petitioners

Due to the illness of the acting Director-General (DG), the Minister had made a request for Ms Lucy Bele, Acting Chief Financial Officer, to lead the DHS team.

The national DHS had held a meeting the day before, specifically focusing on the Breede Valley and the proposals put forward by the Department. They acknowledged certain weaknesses but agreed to have a discussion, led by the Deputy Director-General (DDG), engaging extensively with the Western Cape to explore possibilities for assistance.

They were aware that a team had been sent to the Knysna area to assess the bungalows, and they anticipated reviewing the report upon their return. The team had been instructed to prioritise the report in case of an emergency, as there was indeed a housing emergency. They were awaiting a response from the team.

The presentation they were about to deliver consisted of two parts. The first part involved addressing the 14 000 Mawiga, which were the individuals who had approached the national Department of Human Settlements. Additionally, there were four other petitioners included.

Ms Pamela Dili, Acting Chief Director: DHS, delivered the presentation.

Background

The MAWIGA Petitions Group consists of representatives of community members in Ga-Rankuwa Units 7 and 8, Mabopane M, S, U and X and Winterveld, who have been trying since 1990 to obtain title deeds to their properties on the basis of a Department of Local Government, Housing, Planning and Development Circular (Ref7/8/2/1) that provided for the disposal of all state-owned and subsidised properties constructed before 30 June 1993 in favour of their beneficiaries.

The Minister then declared a Ministerial Project to resolve ownership and transfer for 8 000 uncontested properties as phase 1 of the estimated 14 000 households affected. The project is progressing well, with conveyancers appointed and beneficiary verification almost concluded. The first batch of transfers will be lodged by the end of June 2023.

The four MAWIGA Petitioners are part of the MAWIGA Greater Community, whose properties were illegally sold and transferred by officials in the COT and the NWHC. This is the matter over which Parliament’s Human Settlements Portfolio Committee has been engaging the NDHS to resolve. This report provides progress on the action taken following the Portfolio Committee’s Oversight Visit conducted in the North West province on 31 March 2023.

In 2018, the Public Protector published a report (Public Protector’s Report 14 of 2018) on an investigation into allegations of maladministration by the NWHC and the COT regarding improprieties in the sales and transfers of properties by the Corporation situated within the boundaries of the City of Tshwane.

1. The findings of the Public Protector regarding the above-mentioned investigation were the following:
2. The COT Metropolitan Municipality, in failing to conclude township establishment, through the provision of an approved general plan, was guilty of maladministration in respect of all 4 complainants.
3. The NHWC, in failing to transfer the properties in the names of the beneficiaries, was guilty of maladministration.
4. There was improper conduct on the part of COT regarding fraudulent sales of three of the beneficiaries’ properties and failure to compensate the beneficiaries.
5. The full report on the investigation and findings of the Public Protector is attached.

The presentation took Members through the detailed progress actions taken on the four petitioners

It is recommended that the Portfolio Committee:

• Note the Progress Report on the MAWIGA Ministerial Project whereby Phase 1 of 8000 property transfers will commence by June 2023.
• Note the Progress Report on the actions pertaining to the MAWIGA four (04) petitioners’ subsequent to the Portfolio Committee’s oversight visit to the North West Province on the 31 March 2023.
• Notes that the ongoing consultation processes with the four (04) Petitioners and relevant stakeholders and that the Department commits to report progress quarterly until the matter is concluded.
• Note that the matter of the psychosocial support for the Petitioners is currently being addressed by the Department, through the appointment of a professional service provider through goods & services budget of NDHS.

(See attached presentation for details).

Discussion

Mr Malematja inquired about a situation where a lady had received two offers, one from the Department and another from the City of Tshwane. He wanted clarification on whether she could benefit from both offers, or if she would need to choose one.

He also asked if the Department had pursued legal action regarding fraudulent activities, emphasising that serious action should already have been taken, including obtaining a case number and making arrests.

Expressing his satisfaction with the progress made, he stressed the need to improve the sense of urgency. He pointed out that receiving the full report only a day before the meeting was not acceptable.

Chairperson Semenya acknowledged that the Committee themselves had not acted urgently in taking the illegal transfer of the petitioners' properties to human rights lawyers. However, they were facilitating a private meeting with the office of the Public Protector to align their efforts while finalising the case. They were committed to expediting the process, and suggested organising a meeting. Further, they intended to meet with the Special Investigating Unit (SIU) regarding the case, urging the SIU to take up the matter to ensure a swift resolution.

Regarding psychological treatment and engagement with social workers, Ms Semenya urged the departments to expedite the process, emphasising the impact on the well-being of individuals who had been suffering. Delays in addressing these matters only exacerbated the problems.

The Acting Chairperson suggested connecting human rights lawyers with psychosocial support to run parallel processes, and benefit from each other's expertise.

Ms Sihlwayi agreed that the presentation was good, but emphasised the need for two approaches. Addressing emotional issues would also contribute to addressing the physical needs of the affected individuals, such as their housing and land concerns.

Responses

Ms Bele expressed appreciation for the feedback, and assured the Committee of the team's commitment to improvement.

Ms Dili addressed Mr Malematja's concern by explaining that the lady in question was not accepting two offers. Due to the lady's issues with the property offers from the Northwest Housing Corporation, a parallel process had been initiated to explore what alternative options Tshwane could provide. However, the lady had agreed to proceed with the offer from the Northwest Housing Corporation.

Regarding the case number, Ms Dili said that the North West Housing Corporation had initially approached a police station. After considering all the facts, the police station suggested that the corporation open a case in the relevant jurisdiction where the incident had occurred. Currently, the corporation is in the process of following this recommendation.

Acknowledging the need for a sense of urgency, Ms Dili expressed their commitment to making substantial progress despite the complexity of the matters they were dealing with. She welcomed Chairperson Semenya's intervention and appreciated her suggestion to engage with lawyers for human rights, the Public Protector, and the SIU. She gave an assurance that they would update their reports and continue the dialogue on the progress of these matters.

Regarding psychosocial support, she said that the petitioners had expressed their preference for concurrent progress, rather than isolated psychosocial services. An agreement had been reached to expedite their issues so that the process could run parallel to the construction of their properties.

Ms Dili welcomed Ms Sihlwayi's emphasis on addressing emotional issues alongside physical progress, and acknowledged its significance.

Ms Bele assured the Committee that the message would be conveyed to the Minister and the acting DG. She expressed gratitude for the feedback, reiterating their commitment to work with a sense of urgency, responding to all raised issues and assisting citizens in obtaining adequate housing.

Committee reports on DHS's 2022/23 Q2 and Q3 performance

Mr Sabelo Mnguni, Committee Content Advisor, took Members through the reports.

Discussion

Ms Makesini noted that in the second quarter presentation, the Department had not mentioned some of the challenges, specifically procurement and political instability in the municipalities, resulting in the non-utilisation of the two grants.

The Chairperson said there was an issue they would not disclose, and recommended withholding funds until the Committee received certain responses. He suggested inviting the Auditor-General (AG) and Treasury to discuss this matter further.

He emphasised the importance of land acquisition, despite reaching targets. He requested a recommendation for the Department to make a presentation on the entire process of land acquisition, from beginning to end, including the time it takes. He highlighted that meeting targets, particularly regarding service delivery, would be challenging without efficient land acquisition.

A Committee Member appreciated the report and its clarifications, which supported decision-making. However, she sought clarification on certain issues. She inquired about the timeline for presenting the draft national rental housing plan to management, as she wanted to ensure there would be no delays in service delivery. Additionally, she asked for an explanation of the blocked project analysis not being approved. She agreed that recipients of funds should be aware that the criteria for receiving them were based on better performance compared to others.

Closing remarks

Ms Semenya, resuming her role as Chairperson, said they had received permission to submit their request for the study trip to Brazil. However, she acknowledged that there was a possibility that their request might not be approved due to their previous trip when they had still been part of the Department of Water and Sanitation. Therefore, she advised that they proceed with their submission and await approval or rejection.

Regarding the issues raised from the previous trip, she urged the Members to obtain the report from the administration for more detailed information.

She explained that they had conducted research on Kenya, Egypt and Brazil to identify a country from which Members could learn about addressing the challenges faced by South Africa. Among the options, they had concluded that Brazil was the best choice, with Kenya being the second best. However, they had decided to remove Egypt from the options due to technical problems experienced by other committees when attempting to visit the country.

The meeting was adjourned.