Question NW2552 to the Minister of Human Settlements

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22 September 2023 - NW2552

Profile picture: Mphithi, Mr L

Mphithi, Mr L to ask the Minister of Human Settlements

With reference to her announcement at the Community Schemes Ombud Service Indaba that was held in Johannesburg on 3 to 4 August 2023, (a) how does she envisage that the Government will be empowered to force gated communities to procure services, such as security and gardening services, from black economic empowerment companies and (b) what are the further relevant details in this regard?

Reply:

1. There is no obligatory mechanism or legislative provision which empowers government and the Community Schemes Ombud Service (CSOS) to appoint black-owned companies or Black Executive Managing Agents to render services at gated communities. This means that this largely remains a voluntary scheme and the current statistics simply reflect that there has neither been a discourse on this matter nor an appetite to engage Executive Managing Agents from historically disadvantaged communities and other forms of procurement within the schemes such as the gardening, plumbing and other services mentioned in my speech.

A need to develop managing agents from historically disadvantaged communities is therefore an urgent requirement and as a result, the CSOS has already signed a Memorandum of Understanding with large-scale managing agents to possibly incubate and train the Previously Disadvantaged Individuals (PDI) / managing agents in implementing the transformation agenda. Over time and with Black Executive Managing Agents obtaining practical exposure through collaboration with experienced Executive Managing Agents, these executives will become empowered to independently offer these services to a variety of community schemes.

2. The Memorandum of Understanding will be implemented gradually with the large-scale managing agents in order to achieve the transformation imperative cited above.

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