Hansard: NA: Mini-plenary 4

House: National Assembly

Date of Meeting: 18 May 2021

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Minutes

UNREVISED HANSARD

MINI PLENARY - NATIONAL ASSEMBLY TUESDAY, 18 MAY 2021

Watch video here: Vote No 33 – Human Settlements

 

 

PROCEEDINGS OF MINI-PLENARY SESSION – NATIONAL ASSEMBLY CHAMBER

 

 

 

 

Members of the mini-plenary session met on the virtual platform at 14:00.

 

 

The House Chairperson Mr M L D Ntombela took the Chair and requested members to observe a moment of silence for prayer or meditation.

 

 

The Chairperson announced that the virtual mini-plenary sitting constituted a meeting of the National Assembly.

 

 

APPROPRIATION BILL

 

 

Debate on Vote No 33 – Human Settlements:

 

 

The MINISTER OF HUMAN SETTLEMENTS, WATER AND SANITATION:

 

Chairperson, hon members, Director-General Tshangana, heads of

 

provincial departments and other officials, Chairpersons and Members of Boards and Councils of Human Settlements Entities ladies and gentlemen, in our first tenure at housing, until the global financial crisis disrupted our strong economic growth trajectory, resulting in ever more constrained fiscal resources, we had created a globally enviable momentum in providing housing to our people. When the financial crisis struck in 2008-09, we had already built some 2,2 million houses and delivered 624 000 serviced stands, representing some 2,8 million housing opportunities and were recognised by the United Nations as a great success.

 

 

In total, between 1994 and today, we have been able to deliver just more than 5 million subsidised housing and housing opportunities. We can safely say that no other country has delivered this number of houses freely. We are very proud of our achievements, very proud too to have been recognised by the United Nations as a world leader in this respect. This means that well over a third or 35,1% of South African households have benefited from government’s housing interventions. To give you a more graphic picture of what government has done and continues to do, 35,1% of our population of 60 million is equivalent to more than 21 million

 

people. I need to emphasise this. We have assisted 21 million people in this country to have houses. Out of this, we have make sure that we are providing housing and housing opportunities.

 

 

This is an amazing feat for a technically young democracy such as ours. We regard ourselves as world class leader in our delivery. But, here is the nub of our problem. We have the unfortunate position that those people who previously I had lived by decree are under the apartheid regime restricted to the rural areas and now they are finding their way into migrating in droves to the cities in search of work and a better future. And so they should.

 

 

So, while we gloat about our successes, the thing that stands out for anyone is the growing informality in our urban areas, which is estimated now to be about 2,2 million households and steadily rising. The reason why the informal settlements come to mind when thinking of human settlements is because naturally we concentrate on those things that jar our sense of what is right and our sensibility than that which we have succeeded in. This means our biggest challenge therefore is to ensure that every indigent household has decent shelter, and

 

this is very often deflected by the criticisms that we have and it deflects from our successes. We have been very successful housing 21 million people in the time that we have been in government is success with gloating over and over about on a daily basis.

 

 

We will overcome our problems of informality in time it remains a nightmare made worse by the fact that we continuously receive undocumented migrants from neighbouring countries seeking employment here in our country. We spend a great deal of our time to resolve this problem. The need for housing of our people is long and growing with 2,2 million households still living in informal settlements and when you consider the migrants from neighbouring countries seeking employment, then you can understand the nightmare that we have to deal with year in and year out and it is very often very much in your face.

 

 

A few years ago we chaired the UN-Habitat Conference here in South Africa and the conference came to the conclusion that actually urbanisation is an international phenomenon and the only thing we can do is to plan for it – we cannot wish it away. We cannot stop it. We do not have the resources nor the

 

number of houses to accommodate those who migrate to urban areas. But, if planning is the only solution, it could well mean reconsidering where we develop our industries and our economic nodes. It would mean that housing cannot be planned for in isolation of all the other facets that give dignity to life, as is defined by the concept of human settlements. It also means that we cannot develop industries without considering where the workers will live.

 

 

The big demand for housing will continue to be in the urban and economic centres of our country. This means that in order for us to make a significant break, we need to plan for this. We would like to make sure our urban areas look like we do care for them. We would not want them to look like them 10 years back.

 

 

How will our cities look like in 10 years’ time? We need to plan for that. How would we like our people to be housed in 10 years’ time? We need to plan for that. We might not have the necessary resources, but foreseeing and planning for a problem is a problem half resolved. Here comes the most difficult part though. We would like to think that every citizen has the best interest of the country and its people at heart. But in some

 

of our informal settlements we have people who use the space to take advantage of the most disadvantaged amongst us, who tried to cheat the system, tried to cheat this day and tried to cheat the community. They benefit from shack farming and have perfected the art, making it very difficult to break the back of informality. We have people who have benefitted from being given a house. Then we also have the other side – dishonesty, when people who have benefitted from a house immediately sell it and return to the informal settlement, creating a vicious cycle of poverty and informality.

 

 

In these situations, we are hard at work, trying to see how we can break this cycle. How we can find legal means to strengthen our ownership and make sure that our people are traceable and that they value what we give them. We have a pre-emptive clause in our legislation that bars people from selling their houses before a period of eight years and before they have proof that they can afford a different house. This legal requirement is very rarely adhered to.

 

 

We look forward to a time when we can enforce laws that require municipalities to check and know their constituencies. We must tighten our legislation on ownership. It is at this

 

stage that I have to point out that the houses that we give out free to our citizens are meant for South Africans only. It is their constitutional right. It is part of government’s means of reparation. It is what the Freedom Charter enjoins us to do. We will continuously urge our people to ensure that they keep their houses for the required time. It is an asset that no other government gives out freely, no other government in the world. And any for the other nationalities that live in our country, we have a thriving industry of private rentals that caters for all the income bands. We encourage non-South Africans to consider this avenue. Our free products are only for South Africans and may not be sold to non-South Africans. This means we must provide greater numbers of rental stock where non-South Africans can rent.

 

 

Now, when you consider the statistics SA results, two things are clear – one, our people are selling the assets we give them. Secondly, there is an explosion of informality in our urban areas. You don’t need statistics; it is visible to all of us on a daily basis as we go on with our business.

 

 

Despite these gains, the need for housing is still large, and growing. We need to ensure that those 2,2 million households,

 

or roughly 12,5 million people in South Africa still living in informal dwellings have decent shelter. This figure represents the challenge we have, because not only are we building in line with our needs register, it means having to deal with the horrifying effect of an upwardly moving target of informal settlements.

 

 

The huge challenge we face makes our remarkable and celebrated delivery go almost unnoticed. But for the optimists out there, like me, more than 21 million of our people live in government subsidised housing and we should never lose sight of this, because it is taxpayer’s money invested in those who are less fortunate. And no country has such a record.

 

 

The current need for gap housing is one that we are now resolving. We would like to invite the private sector to join us and invest in rented especially on social accommodation.

But I am also happy to announce that the secondary layer of delivery has laid a solid foundation.

 

 

The Human Settlements Development Bank has been established and its role is to assist our first time buyers and working- class people to purchase their own houses. This programme is

 

called Finance Linked Individual Subsidy Programme, FLISP, and in one of his wittier moments, the Minister of Finance indicated that he himself did not know what FLISP was and he urges us to put it simply and he said, if you say to me this is a help me buy a house scheme I would understand it better and we agreed with him. So, we have the FLISP programme. We can’t change the name because this is what is recorded in our legislation but what it means is we help you buy your own house, especially if you are referring to first time buyer. We have now launched this project through the Housing Bank for those persons earning between R3 500 and R22 000. Those persons qualifying are urged to approach the bank for loans or any bank. The type of houses that we are able to finance through this programme have the potential to change the face of the country, especially for the low income earners. The bank will do this by mobilising a wide range of funding and providing bonds for what would normally have been an un- bankable sector of our society.

 

 

Last week I was treated to the most amazing delivery of a FLISP housing project. It is called the Sky City Housing Development Project, it is a remarkable development, otherwise given to the un-bankable sector. You will find this place in

 

Alberton, in Ekurhuleni, please find it you’ll be amazed on what it is that we are able to provide our people. It is a very exciting project for human settlements and I am extremely glad that the bank and Cosmopolitan Projects have been showcasing what is possible and I thank them for this.

 

 

We look towards the Housing Bank to play a central role in accelerating delivery of catalytic or mixed-income housing projects, affordable rental stock, otherwise called social housing and possibly student accommodation if the Minister of Higher Education allows us to do that in his space. The bank will therefore be the key and central funding institution for human settlements development sector and the market.

 

 

By mobilising a wide range of funding, including banking and non-banking funding sources, the bank will leverage grant funding from various fiscal grant allocated to us to attract other sources of funding. This will create the necessary funding scale which will undertake these large projects that we hope to roll out.

 

 

The government’s financial resources have been more and more constrained, thus limiting the capacity for delivery. Covid in

 

particular has worsened an already poor prognosis. In the three years preceding Covid crisis, a cumulative reduction of some R14,6 billion has been cut from the capital budget for housing. We dread further inevitable reductions; given the fiscal constraints that the government faces.

 

 

For our part however, we are making sure we deliver and open housing opportunities across the value chain. In particular, we are determined to help create wealth by extending asset ownership to every South African, including removing the impediments to home ownership. This is a critical way to economic inclusion. People must own land, and they must own their own homes. Having studied our successes and setbacks, we have now concluded our new additional programme – that of releasing land, putting in infrastructure and allowing our people to build their own houses. We believe that this policy shift is long overdue and we have taken advantage of the processes of the land redistribution to request that all urban state land should be released for social housing. This would allow working people to live near their place of work and be able to walk to work.

 

It makes for inclusive societies, which is our ultimate goal. The land release programme has been put in place by the department and details of thereof will be released in due course. The delivery of social housing as an instrument for affordable rental is through 32 entities managing a total of

40 316 social housing units across 191 projects. This number is expected to increase substantially with 53 contracts currently managed to deliver 16 000 social housing units.

 

 

In addition, 75 projects with a potential yield of more than

 

30 000 units are registered on the social housing pipeline for future delivery. Our affordable rental programme is doing well. This year alone, despite Covid-19, Social Housing Regulatory Authority, SHRA, completed 3 009 social housing units compared to the previous year’s 2 002 houses. The SHRA further accredited 1 944 social housing entities during the past financial year. We were, like all other delivery systems, severely hampered by the pandemic. We hope to pick up on lost ground and make peace to deliver even more as we go ahead.

 

 

Now, at this point Chairperson, I wish to take this opportunity to restate what I said last year in this House

 

about Social Housing and the Affordable Rental Relief Programme. I indicated in 2020, and I quote:

 

 

This rental relief is solely aimed at assisting tenants in formal affordable rental housing to meet their monthly rent obligations. Of course, means testing will form part of necessary criteria to determine those who can be assisted. An amount of R600 million is allocated for this purpose.

 

 

For those who might not be familiar with the language that we use, affordable rental housing is government’s subsidised rental housing managed through the Social Housing Regulatory Authority. We did not mean general rental. It cannot mean general rental; whichever way you may interpret it. General rental out there, that’s outside of what we term affordable housing that is regulated by and supported by SHRA is in the private rental space. We cannot interfere with the private space. So, the category that we identified is the affordable rental sector. That is the language that we use. The private sector has no project for affordable rental housing and we have no jurisdiction over the private sector housing rental. When you hear the term affordable rental housing, it is our

 

programme managed by SHRA. We did indeed request R600 million to assist those who find themselves in distress in our housing institutions. This we did in our 2020 budget which is what I have just quoted now. However, the Minister of Finance, in his Adjustments Appropriation approved R300 million to SHRA and the remaining R300 million to the Housing Bank. These amounts have now been transferred to the two entities. Therefore,

R300 million to assist those who rent from the state to offset the impediments caused by the pandemic.

 

 

The policies and qualifications are available from SHRA. Similarly, R300 million was allocated to the NHFC which is our bank to offset the debt incurred by its own clients. The amounts were not allocated to these two institutions to use for rental relief in the private sector, but within the sector we are responsible for.

 

 

I want to emphasis this, we cannot and do not regulate rental for the private sector. We regulate that which is under our jurisdiction. Our people should not allow those who are ignorant to mislead them in anyway.

 

Chairperson, in the 2020 budget statement I announced that we would allocate R4,6 billion for provinces and metros respectively towards upgrading of informal settlements. This year, there are 679 informal settlements planned for upgrading by the provinces and 344 informal settlements targeted by metropolitan municipalities. We’ll monitor the progress very closely as it has become practice, if the money is not used by the third quarter, we have the right to have it re-allocated the damage in the past and we will do so in that particular instances. We urge all municipalities; we urge all people who received our allocation to make sure that the money is used or else we will take it back from them.

 

 

Over the next three years about R10 billion has been ring- fenced to accelerate the upgrading of informal settlements countrywide. The rapid growth of informal settlements in all major cities and towns which I reflected on earlier have necessitated a review of funding frameworks.

 

 

The department has created a dedicated Upgrading of Informal Settlements Grant Funding Framework exclusively set-up to address adequately the upgrading of this challenge in our country. We are confident that these strategies and

 

interventions will simultaneously add to the much-needed stimulus to our Economic Reconstruction and Recovery Plan to revive industries and the economy, especially the construction industry.

 

 

The pandemic highlighted and intensified South Africa’s structural inadequacies and the potential to address these depends on the implementation of key reforms outlined in the Economic Reconstruction and Recovery Plan of 2020. Our economy was already in recession and 7% of our economic decline in 2020, undoubtedly exacerbated by the pandemic, led to many businesses, especially those in the construction industry shutting their doors.

 

 

We would like to make ourselves available to assist them to get back to work. An indaba is planned with our construction sector to see how we can assist them get back to work. The construction sector contributes 3,9% to South Africa’s GDP and employs 1,3 million people. However, over the last year this sector has experienced hardship as a result of severe disruptions.

 

The pandemic plunged many human settlements projects across the country to a halt and during these challenging times we were compelled to re-evaluate our contractual provisions and obligations including incorporating health and safety measures to comply with the pandemic.

 

 

Our primary objective remains the transformation of human settlements into liveable and sustainable spaces through spatial targeting and consolidating of investment. The Department of Human Settlements resolved to refocus its programmes on: Firstly, upgrading of Informal Settlements. Secondly, Integrated Residential Development Programme.

Thirdly, significant increase in the affordable rental housing stock. The main strategy is to expedite the implementation of the programmes by releasing service sites and support beneficiaries to build utilising a range of programmes such as the PHP, which is the Peoples Housing Process, Individual Subsidy Programme and FLISP. The plan is to establish and enhance the existing housing support centres in order to focus on supporting matters related to real estate and housing construction.

 

Targeted infrastructure investment is critical for economic growth as well as contributing towards social protection and community development. The focus is on infrastructure development to support both economic growth and enhance social protection is enshrined in our plans for this year, especially to enhance social protection.

 

 

An area-based approach has been adopted for the development of human settlements as such 136 areas throughout the country have been identified to address the legacy of apartheid spatial planning and to centre investment in areas of potential economic development.

 

 

We have declared these as Priority Human Settlements and Housing Development Areas. One-hundred and thirty-six areas was published on 15 May 2020, based on an extensive consultation process conducted with provinces and municipalities.

 

 

In the last financial year, in partnership with the provinces and municipalities we completed 19 development plans for our priority development. In the current financial year, we intend to complete 47 development plans. This would ensure the

 

mobilisation of investment from not only human settlements but other government departments, municipalities and the private sector in these areas. Human settlements budget will be allocated for investment in these areas with 30% in the current financial year and 60% by 2024. In subsequent years we plan to increase this to between 70 – 80%.

 

 

Chairperson, Covid-19 resulted in a business climate that is not conducive to credit access to many borrowers in the FLISP target market. However, during 2020-21 financial year, the NHFC will make sure that 2 815 applications for FLISP are processed. We are on course with these and 2 120 have already approved. The total value that we have put aside is

R111 million. This has triggered over R1 billion value in home loans approved by different banking institutions.

 

 

The HOUSE CHAIRPERSON (Mr M L D Ntombela): Thank you very much, hon Minister.

 

 

The MINISTER OF HUMAN SETTLEMENTS, WATER AND SANITATION: I can

 

see you are getting very impatient with me, Chairperson. Thank you very much for the time you have given me. Thank you, sir

 

The HOUSE CHAIRPERSON (Mr M L D Ntombela): The time has running out unfortunately, hon Minister. Thank you.

 

 

Ms M R SEMENYA: Thank you very much, Chair, greetings to the Minister, Deputy Ministers, members of this august House, ladies and gentlemen, it is an honour for us to participate in this Budget Vote. Hon Chair, National Democratic Revolution, NDR, is not complete when poverty, unemployment and inequality still define the majority of our people. Our people have no place to stay, they have to travel long distances to work and some of the clinic are still very far. These may sound like a cliché, but it is a fact that apartheid thrived on spatial segregation.

 

 

Hon Chair, the problem is compounded by the high unemployment rate, low economic growth and the negative impact of Covid-19 in dense areas, rapid urbanisation and unlawful occupation of land. It will take time to reverse the situation. The biggest human settlement development challenges in South Africa, is the form and the location of land development and human settlement projects that do not often responds directly to government’s commitment on spatial intent and transformation.

 

However, the Medium Term Strategic Framework, MTSF, 2019-24, responds to the call as it’s operationalised National Development Plan, NDP, Vision 2030. The MTSF calls for a co- ordinated integrated cohesive National Spatial Development Framework and regional level interventions to unlock opportunity for redress and eradication of environmental risk and other vulnerability associated with poor human settlement conditions.

 

 

The state of the nation address 2021, and the economic recovery, reconstruction and recovery plan, called for integrated service and transformation in all places. The state of the nation address 2021, also announced a massive human settlement development across the country, such as human project in Gauteng, that would cater for more than 60 000 households.

 

 

Budget Vote 33, and its associate strategic annual performance plan, responds to the Vision 2030 MTSF as and the state of the nation address. In fact, it brings these plans to bear as it provides simple, measureable and time bound performance indicators and targets. For this reason and others, the ANC supports this Budget.

 

The ANC has been consistent on the need to provide suitable integrated human settlements that encourages social cohesion, allocated in close proximity, economic opportunity and social amenities. People should stay closer to where they work. It is unfair to expect people to travel more than two hours to work. Providing decent housing and shelter for our people is a centre of the National Democratic Revolution.

 

 

Since 1994, the ANC has focused on people who cannot afford to provide for themselves, built basic free homes, upgrade houses and services in the informal settlement, and work towards restoring dignity and improving the livelihoods of South Africans. Hon Chair and members, the Freedom Charter captures the ANC’s commitment to provide houses, comfort and security.

 

 

The ANC did not only stop at committing safety and comfort, but also mandated itself in dismantling segregation, spatial patterns to create integrated and sustainable communities, where our people will live close to socioeconomic activities. These social contract remains our inspiration and a strategic guide to realising a better life for all.

 

The Covid-19 pandemic has impacted significantly to the economy and has forced us to adopt a new normal that we have never anticipated in our lifetime. Housing is one of the key solution in the fight against the spread of Covid-19. For instance, people should isolate in their own homes. In this regard, we have witnessed a massive rollout of emergency housing across the country. Yes, they are not the Rolls-Royce of housing, but they have necessary amenities such as water and sanitation, which are key in fighting against the spread of Covid-19.

 

 

Hon Chair, allow me to zoom in some of the key aspects of the Budget Vote 33. Our people would like to know how much is allocated for this budget and how it will improve their lives. Budget Vote 33 seeks to facilitate the creation of sustainable human settlement and the improvement of the household quality of life.

 

 

It is worth mentioning that we are pleased to learn that the department plans to co-ordinate and partner with provinces and municipalities on the upgrading of informal settlements and provision of affordable rental housing, among many other programmes. This is evidenced in the fact that around 97% of

 

this Budget Vote will be disbursed through transfers, subsidies to provinces and municipalities and other entities.

 

 

We appreciate the R1,2 billion increase that Budget Vote 33 received for the year under review, which brings the total budget for Human Settlement to R31,6 billion.

 

 

We commend the department for renewed focus on upgrading of informal settlements, the introduction of the new established informal settlement, and the upgrading partnership grant.

These grants will go a long way in upgrading and formalising informal settlements over the medium term.

 

 

It is worth pointing out that the grants will deliver 180 000 stands with access to municipal services to our communities across the province and the metros. We condemn the provinces that are using human settlement grants to fund compensation of employees. In this regard, the National Treasury must continue to penalise provinces that are not complying with the condition of these grants.

 

 

We appreciate the introduction of the people’s housing programme, which will improve the lives of our people, for the

 

better. The department will utilise land that is ceded to them in the process of land redistribution, to use for the peoples housing programme. This programme will allow people to build their own houses, enable skills development and empowerment.

 

 

The department must embark on roadshows to market this programme to our people, so that they can take full advantage of this programme. In the midst of these challenges, the department and supporting entities have been hard at work, ensuring targets are achieved and the implementation takes place.

 

 

We applaud the Minister for declaring this 136 priority housing development which she has reported on now. Let me give credit where it’s due. The delivery of social housing and rental housing units in priority housing development areas of

3 463, ... [Inaudible.] ... represent 12% success rates of the intervention.

 

 

In addition, the 682 newly constructed and upgraded community rental unit is a great achievement towards sustainable human settlements. The delivery of title deeds remains a challenge and we hope the department will develop mechanism - working

 

with provinces and municipalities - and deal with the challenges and make sure that our people get what they deserve, because the ANC government is intended to give them dignity.

 

 

Our support for this budget is not a blind support, without condition. We accept that this is a plan and it has to be implemented. We will be there as the portfolio committee overseeing the implementation of this Budget Vote. In this regard, the department must accelerate the issuing of title deeds, support provinces and municipalities in order to utilise the Provincial Emergency Housing Grant and the Municipal Emergency Housing Grant expeditiously in order to prevent land invasion.

 

 

Chairperson, we do note that the department is far from where it should be, but the progress is being made to advance and facilitate the creation of sustainable human settlements and improvement of households’ quality of life. Through our oversight and accountability tool, we will ensure that the department, through this budget, advances and transform the lives of our people through impact driven targets and output

 

that ensures that we provide equitable spatial housing transformation and transform the lives of our people.

 

 

We do not have time to grandstand. We want to congratulate the Minister and the team. We ask the Minister to work hard to capacitate entities and some of the section of the department for them to be able to meet the requirements as outlined in the plans. Thank you very much, hon Chair and members.

 

 

Ms E L POWELL: House Chairperson, every year at this time,

 

members of this House are subjected to long ... [Inaudible.]

 

... queries and endless list of promises from incompetent and

 

compromised Ministers, while the reality on the ground to see South Africa sinking into an ever deepening a burst of

poverty, malnutrition and despair. Whilst members of the ruling elite stretch around and designer clothes varied by

very important person, VIP, security and expensive German cars

 

to Lekgotla and summits. The reality of daily life for millions of South Africans becomes more and more horrifying.

 

 

From the ... [Inaudible.] ... streets of Makhana, where raw sewerage runs through the town to the semi constructed, and the abandoned housing projects in Alfred Nzo to the derelict

 

wreck that now defines the EThekwini city centre. From the children playing in the dust of our nations, ever swirling slums, to the distort looks of despair on the faces of mothers and fathers who have to beg at car windows to feed the hungry families.

 

 

The crisis that looms outside the walls of the ANC’s gated

 

ministerial housing compounds intensifies. For most the deep suffering of our nations, poorest citizens are simply

impossible to ignore, yet somehow the ANC’s wilful contempt of

 

our citizens and their complete failure to do what is right, and just for this nation endures. Despite a triple junk rated

economy, a failed government staffed by incompetent cadres and the systemic looting that now defines our state characters.

The ANC continue to deny any involvement in the cause and effect of their failed policies.

 

 

House Chairperson, it is common course that South Africa is currently led by out of touch elites who spend more time stuffing political war rooms, disguised as advisory panels and rapid response task teams, than actually focusing on the business of saving South Africa from the economic carnage that it now confronts.

 

Millions of rands of taxpayer’s money is spent every year by departments such as this, hiring incompetent ANC cadres to reward patronage and execute the internal strategies of the ANC’s warring sides. Look no further than the R14 million spent in this ministry on the salaries of ANC connected

national rapid response task team members, the likes of Rhodes must fall, leader Chabane ...[Inaudible.] ... and compromised

ex PAC leader Thami ka Plaatje. Many of these members were employed by the ministry despite not even having submitted

Curriculum Vitae, CVs.

 

 

 

senior ANC cronies, the likes of Bathabile Dlamini, Menzi

 

Simelane, Stevens Nkululeko ... [Inaudible.] ... Susan Shabangu Boy Mkhize, all been hired by the hon Minister’s

office during her time, most likely in order to execute the nefarious political agenda of the ANC’s factional wars. But

those cadres do not have the necessary training to get the job

 

done effectively, and so this year the department will spend almost a quarter of a billion rand on external consultancy services, an increase of more than seventy percent, adding salt to the gaping wound, While our national unemployment rate harbours at 42%. The ministry rallies to defend the expenditure of millions of Rands on Cuban engineers, gas

 

lighting the nation into believing that these deals were cut on the basis of skills transfers. All the while, our engineers sit at home.

 

 

Hon members, this situation will abound for as long as the ANC

 

remains in power. And despite the list of more hollow promises for the upcoming year, reciting before the House today the

delivery targets promised during Human Settlement budget speeches in previous years have yet to be fulfilled. In the

2019-2020 financial year, more 36 000 of the promised

 

sustainable human settlements were not delivered. The 106 informal settlements, which was more than half the annual

target, were not assessed for feasibility, 183 informal settlement upgrading plans again more than half the annual

target were not developed, the planned upgrading of 17 300 informal settlements and more than 15 700 planned subsidy

housing opportunities did not materialise of the plan to

 

deliver 4000 private affordable rental units, more than 3000 to have these were delivered. Why? Because the national housing finance corporation did not submit their business plan.

 

Despite Human Settlements having a dedicated title deeds grant which is now are being scrapped. The department was also only to able to deliver 28 000 title deeds in the 2019-20 financial year. In the same financial year, the in the Western Cape the target of 7000 was exceeded and more than 8490 title deeds

were delivered.

 

 

 

This DA led province has now also developed a smart ... [Inaudible.] ... to speed up the process even more. Well COVID

provided a useful smokescreen for department’s failure to hold

 

the provincial governments and entities accountable. The reality is that the end of this financial year only briefly

coincided with the onset of COVID.

 

 

 

Hon members, the Auditor General’s findings in regard to this department have been even more concerning. According to the

outcome of the last audited financial year. The only

 

provincial department have received an unqualified audit without findings, was the Western Cape. No surprises there. Not a single entity obtained a clean audit. The Auditor General’s first special report on governments, financial handling of the COVID-19 crisis was scaving at the onset over the crisis the hon Minister established a Human Settlements

 

command centre to manage the emergency densification, to which hundreds of millions of Rands were reallocated.

 

 

The AG's report, which analysed this command centres work made a number of blistering observations, including that not one,

that did not ensure the provincial and local governments were delivered in ensuring that residents in informal settlements

were resettled in areas where social distance could be observed. To the speed at which the implementation of the

densification progress did not take the necessary urgency into

 

account three. Three, in some instances the occupants of the completed ... [Inaudible.] ... with families whose names did

not appear on the housing subsidy system. And ... [Inaudible.]

 

... were occupied prior to the official handover by some

 

people who were not the intended beneficiaries when questioned on these findings in portfolio committee the Director General

of this department himself, acknowledged that national housing

 

policy had been widely flouted in the provision of emergency housing.

 

 

Despite the litany of damning outcomes, hon Minister Sisulu’s department was unable to give the portfolio committee any evidence of Section 65 consequence management for what appears

 

to be patent, fruitless and wasteful expenditure and irregular supply chain management processes.

 

 

Chairperson, to highlight what these values mean in reality, members will recall that in last year’s budget speech the hon

Minister told the nation that the Department of Human Settlements was on site, building 1000 tiu’s Duncan village,

yet almost a year later, after 11740 units announced for emergency delivery in this area, less than half have been

completed. This is despite the village being home to more than

 

20 000 informal dwellings in Gauteng. The deadline for 1000

 

... [Inaudible.] ... Mamelodi was extended twice and by

 

November, less than a quarter of units had been completed, while not a single beneficiary had received keys.

 

 

The tiu’s built the Thulani hostels in Limpopo through the

 

eyes of the nation when the premier arrived at the handover

 

ceremony, to find 40 units resembling tin shacks built at a cost of more R64 000 each. ... [Inaudible.] ... avenue emerge emergency housing project in KwaZulu-Natal, KZN, not a single beneficiary from the Kennedy Road informal settlement has yet been allocated a unit and retaining walls have now collapsed due to poor structural works.

 

The failed housing development agency, which has recorded more than R131 million in irregular fruitless and wasteful expenditure, has delivered nothing but controversy since being appointed by the Minister to lead the d densification programme. This is as a result, ongoing political

interference.

 

 

 

House Chairperson, in May last year, shortly, after millions of rands were redirected to this entity, Minister Sisulu

personally appointed the Chief Financial Officer, CFO, of the

 

entity, a multi-millionaire who was reportedly embroiled in the Bathabile Dlamini linked The South African Social Security

Agency, SASSA, grants scandal. Shortly after instructing this appointment, the hon Minister then blocked the ...

[Inaudible.] ... board’s recommendation to appoint a suitably

 

vetted candidate, to the position of Chief Executive Officer,

 

CEO, again, directly appointing a CEO, the post for six

 

months.

 

 

 

Following a report of the AG, raid on the premises by the hawks in December, and a number of tender related prior requests submitted by the DA. The hon Minister was then forced

 

into a corner and under the belated guise of accountability, fired the CFO and terminated the secondment of the CEO.

 

 

Most interestingly, honourable members in the Eastern Cape, a company trading as NJR projects, was awarded a contract by the

... [Inaudible.] ... a for the construction of the R85 million Duncan village housing project, none other than Edwin Sodi,

who was arrested in September last year in connection with the ace Magashule linked Free State asbestos tender, was a

registered director of the company at the time. The DA has

 

referred this matter directly to the Special Investigative Unit, SIU.

 

 

House Chairperson, as a result of the mismanagement of

 

millions of rands by the ANC, and the ever deepening economic crisis. The Department Human Settlements is now having to put

measures in place to immediately downscale the delivery of

 

houses. Provinces have been notified that housing projects planned for the next year will only be supported on the basis of limited conditions. The national department has also instructed provinces to provide evidence of measures taken to downscale the delivery of units. Provinces and municipalities have already had to deal with the series of major budget cuts,

 

impeding their ability to meet the growing housing demand. The truth is that under the ANC is incompetent and kleptocratic leadership South Africa has run out of money and it is out of options, instead of right sizing the civil service and privatising state-owned enterprises, SOEs, as every ratings

agency has urged, the ANC-led government is retaining a bloated civil service and bailing out SOEs while making major

cuts to critical frontline services.

 

 

 

A government that takes money away from formal housing in

 

order to bank role vanity projects, like South African Airways, SAA, simply cannot claim to be acting in the best

interests of our people. Hon members, the ship is sinking but thankfully alongside the ANC.I thank you.

 

 

Mrs M R MOHLALA: Chairperson, we reject Budget Vote 33 on Human Settlement, one of the critical weaknesses of the department is the lack of sustained oversight over its entities which as a result move on aimlessly creating fertile ground for looting of resources. Chairperson, more than two million people in this country are living in infested and flea-ridden informal settlements, and some live in back rooms and shacks 27 years after the dawn of democracy.

 

For 27 years, this government has failed to solve the issue of apartheid spatial planning, which has caused a mismatch between the location of housing and employment opportunities, which also contributes to and is a direct result of income inequality. As a result, two-third of South Africans rely on public transport to their workplaces, everything. Public transport still imposes huge social and economic costs on poor household. Social housing is a nightmare on the lives of the majority of our African people, who are being threatened every day of evictions due to the inability of paying their area rent payment.

 

 

Minister, your department has committed to the people that those who are unable to pay their rentals during the COVID-19 pandemic outbreak, the department will take care of them through rental relief scheme. But nothing has happened up to so far. What is the cause of delay for the R600 million COVID-

19 rent relief payments to beneficiaries’ informal settlements under government provisions? The Minister, should the undertake an assessment of the capabilities of entities undertaking work on its behalf.

 

Minister, Communicare and non-profit company based in Cape Town, historically stole social housing properties during the apartheid government, and to date they are still incorrupt ownership of these social housing properties and land.

Minister, this very same non-profit company has taken legal action through court to claim area rent that accumulated during COVID-19. Tenants were issued with rent interdicts, and arrears summonses for the rent. How was it allowed that Communicare has come to be in possession of such a huge portfolio? Not only that, Minister, you have also failed to lead any transformative programmes in your portfolio.

 

 

The Estate Agency Affairs Board, an entity in human settlement, regards the estate agency sector as the least transformed into the country. The numbers paint a picture of stubbornly white dominated industry. Over ninety per cent of the estate agents in this country are still white. When will your department work on transforming this sector, to create a conducive environment for black people to be drawn in the value chain, and to grow into sustainable entities?

 

 

Chairperson, the Annual Performance Plan shows that this department has failed to reach some targets they have set

 

themselves. Money is returned back to Treasury, due to officials in municipalities and provinces who lack capacity to take the money where it is needed. Cadre deployment is the order of the day, while our people are languishing on inhabitable informal settlements.

 

 

This department is moving with the slow pace on securing land parcels for future housing development in the country.

Minister, the Annual Performance Plan also shows that the Department of Human Settlement is relying heavily on consulting firms across the board, instead of building its own capacity to perform its mandate. This government is failing to make any significant impact on middle income household housing needs. The majority of government employees, educators, nurses, police officers, miners and many more whom I did not specify them and were on my list, are living without proper houses due to unaffordability status in the gap market. This department is doing nothing about that. The indignity and suffering caused to the people for the use of the bucket systems and pit latrines has still not yet been resolved to date. The Minister maintains that the bucket eradication process will be transferred to the housing development agency. But yet the portfolio committee has not seen evidence of an

 

agreement between the department and the housing development agency on the transfer of these critical programmes. We reject this budget vote. Thank you.

 

 

Ms S A BUTHELEZI: Chairperson, the IFP has consistently raised the problematic and slow pace of implementation of projects by this department. In November 2020, the country’s estimated housing backlog stood at 2,6 million. This is a devastating state of affairs with some families waiting over 15 years to receive adequate housing. The department is failing dismally at meeting its constitutional mandate to ensure access to adequate housing for all and as a result the department is failing to guarantee dignity and security to the most vulnerable members of our communities.

 

 

At this point with such an excessive backlog, it is difficult to attribute this failure to a simple clack of resources. This backlog speaks to an unsustainable and ineffective system of delivery that needs a massive overall immediately. Further, as a result of Cabinet approved budget reductions of

R40,6 billion over the Medium-Term Expenditure Framework, MTEF, period, the department’s allocation will decrease at an average annual rate of 1,1%. These reductions will largely

 

impact conditional grants to provinces and metropolitan cities for the development of housing and related infrastructure due to government’s imperative to reduce public spending. Once again, our indigent will bear the brunt.

 

 

The IFP remains concerned by the lack of attention paid to our people’s living and housing conditions. The lack of implementation and accountability have been exposed by the lockdown regulations and the requirements to keep our people safe during the pandemic.

 

 

According to Statistics SA’s 2018 General Household Survey, 14% of South African households are in informal settlements. As a means to address these living conditions, the IFP welcomes the department’s plan to upgrade informal settlements to provide security of tenure and basic services to poor and underserviced households.

 

 

In 2019, President Ramaphosa announced the establishment of the Human Settlements Development Bank. The aim of this bank is to expand the delivery of houses in the country with a target of 500 000 houses by 2024. According to the most recent reports, the establishment of this bank is at an advanced

 

stage, which hopefully means that more South Africans will have secure and adequate housing. While the IFP welcomes this development, it remains to be seen whether it will alleviate the backlog with expedience or be marred by scandal as with other financial initiatives.

 

 

The IFP wishes to reiterate its stance on the apparent abolishment of the Title Deeds Restoration Grant. The decrease in funding is worrying as there is still a major backlog of title deeds that needs to be issued. Some of our citizens have passed away without receiving their title deeds, affecting the lives of their dependents. The previous and current pace at which the department is working is unacceptable. We once again call for this title deed programme to meet all its targets and to put this issue to rest over the next two years. The IFP supports the budget. I thank you.

 

 

The HOUSE CHAIRPERSON (Mr M L D Ntombela): Thank you, hon Buthelezi. Hon Buthelezi, it’s not unparliamentary to show your face. It’s actually a healthy parliamentary exercise. We now move to the hon Mey of the FF Plus.

 

 

Afrikaans:

 

Mnr P MEY: Die bevolkingsaanwas in Suid-Afrika word net groter en groter. Daar is inwoners wat tot 10 jaar en langer wag vir hul huise. Dit het dringend tyd geword dat die ANC regering sterk standpunt, teen verskeie faktore wat bydra tot hierdie groter en groter-wordende agterstand, inneem.

 

 

Een van hulle is die bevolkingsaanwas in Suid-Afrika. In 2020, in China was die bevolkingsaanwas 0,3%. In Suid-Afrika was dit 1,28%. Dan kyk jy na ekonomiese groei in China. Dit was 6,1%. In Suid-Afrika was ekonomiese groei slegs 1,5%. Onder dié swak ekonomiese groei kan geen land so ’n vinnig groeiende bevolkingsaanwas regverdig nie. Wat is die antwoord?

 

 

Ons moet hierdie boodskap aan alle mense in Suid-Afrika verkondig, dat daar wel kleiner gesinne moet kom. Ek dink dit is baie belangrik. ’n Ander ding is die invloei van mense uit Afrika. Ek het gehoor wat die Minister sê dat mense buite Suid-Afrika is nie geregtig op behuising nie, maar een ding wat ons moet onthou is dat baie van hierdie mense word Suid- Afrikaanse burgers en die meeste van hulle kom na Suid-Afrika omdat hulle nie die nodige werk in ander dele van Afrika het nie, of hulle het nie genoeg kos nie, nog minder behuising.

Vra u byvoorbeeld vir enige Zimbabwiër, waarom is jy in Suid-

 

Afrika? Dan is die antwoord, Zimbabwe kan ons nie van huise, werk of kos voorsien nie. Die vraag aan die ANC regering is die volgende. Is dit regverdig teenoor die mense van Suid- Afrika? Werkloosheid en hongersnood neem by die dag toe by ons en ... word van hul huise ontneem.

 

 

Ons besef egter dat COVID-19 ook ’n rol in die vertraging van die bou van huise gespeel het maar dit alleen is nie die rede nie. Wat is die oplossing? Die VF Plus het in 2020 ’n beroep op die Minister van behuising gedoen om alle staatsgrond om die metros te identifiseer, en van landbou na residensiële eiendom te ontkoppel. Die VF Plus het met waardering kennis geneem van die Minister dat 14 000 ha grond beskikbaar is, maar om dit te ontkoppel neem tuseen vyf en sewe jaar, wat glad nie toereikend is nie. Die VF Plus doen ’n beroep op die Minister om alles in haar vermoë te doen om die ontkoppeling te bespoedig, al moet daar ook ’n wetswysiging plaasvind. Ek wil graag die woorde van die Minister in haar toespraak herhaal.

 

 

English:

 

Ours should be to provide the infrastructure, the services and subsidies.

 

Afrikaans:

 

Ek stem 100% saam, maar ongelukkig is die probleem dat die grond nie vinnig genoeg geïdentifiseer word nie.

Infrastruktuur bestaan nie en mense gaan beset grond onwettig wat aanleiding gee tot groot onsekerheid by die inwoners van Suid-Afrika.

 

 

Indien grond geïdentifiseer is, kan staatsbeplanners voortgaan om grond beskikbaar te stel vir ontwikkeling. Sodoende kan onwettige besettings verhoed word. Waar grond nou onwettig beset word, ignoreer munisipaliteite dit en groei dit so vinnig dat dit ook ’n las vir die publiek word omrede paaie versper word en ... [Onhoorbaar.] ... gebrand word. Dit vind dwarsoor Suid-Afrika plaas maar in die Nelson Mandela Metro, tussen Uitenhage, Despatch en Port Elizabeth, waar ’n nuwe teerpad sowat twee jaar gelede gebou is, het duisende plakkers onwettig die grond beset, en omtrent elke week word persone verhoed om van Uitenhage, Despatch na Port Elizabeth te reis. Dit is totaal onaanvaarbaar en die oorsaak is dat die munisipaliteite absolute niks gedoen het om dit te verhoed nie. Ek wil net weereens vir u sê dat hoe gouer ons vinniger beweeg met die bou van huise, hoe gouer sal hierdie probleme opgelos word.

 

’n Ander probleem is dat, as gevolg van die brande op die paaie, vind polarisasie al hoe meer plaas in Suid-Afrika. Om vir iemand ’n huis te gee met ’n titelakte beteken so baie want dan het jy toegang tot finansiële instellings en dit is, nie net alleen vir die eienaar nie maar ook vir die nageslag, ’n groot bate. Die VF Plus ondersteun nie die verslag nie. Ek dank u.

 

 

The DEPUTY MINISTER OF HUMAN SETTLEMENTS, WATER AND SANITATION

 

(Ms P Tshwete): Thank you, hon House Chair. Chair, in the interest of time, allow me to confirm that all protocol is hereby observed. The existence of COVID-19 which started at the beginning of the last financial year 2020-21, presented us with two sharp contradictory effects. These contradictions are death in our sector and immediate family, as well as doing business differently using technology. We would like to convey our deepest condolences to all those who have departed.

 

 

We had also planned a number of face to face activities as the department, which includes training and capacitation of women, so that they can directly participate in the construction of houses, outreach programme that involves housing handovers, issuing of title deeds and conferences. We then commenced with

 

our virtual provincial road shows, where we met with organised women across the country. This presented us with an opportunity to interact and establish facts around the participation of women and youth contractors in the construction of houses through the implementation of 40% set aside for women and 10% for youth contractors.

 

 

After meeting with women from all provinces, we then decided to meet with MECs along with the organised women, to further identify challenges in the implementation of women and youth set aside. In this we observed that, seven out of nine provinces are not implementing the set aside for women and youth contractors as expected. In this regard, let us congratulate Mpumalanga and Limpopo provinces for their commitment in the implementation of this directive.

 

 

In moving forward with this very important task, we had gone back to the provinces and asked that, they develop plans that will respond to these challenges in order to fully unleash the implementation of the directive. That is exactly what we will be monitoring in the current financial year.

 

Yesterday we had a meeting with the chief executive officers, CEOS of the National Home Builders Registration Council and the Construction Industry Development Board, together with women representatives from Limpopo to discuss challenges around the development and grading of female contractors. We have agreed that, the Construction Industry Development Board will expedite the grading of lower grade levels to women and youth contractors to higher levels. On the other hand, a lot of good work has been done through our entity, the National Home Builders Registration Council, where 2 270 women have received training on various technical areas.

 

 

We will also be introducing a module of finances to capacitate women and youth contractors, as this has been identified as a need by the training participants. However, we can have all the training in the world, but if the training does not provide work for women and youth contractors, it becomes a pointless exercise. We need to confront this challenge between training and practical placement of contractors. We have also agreed to hold an urgent workshop which will audit the challenges experienced by women contractors across the country. This will enable us to respond appropriately going forward.

 

The other aspect that requires our immediate attention, is the late payment of women contractors by provinces and municipalities. This kills the emerging women and youth contractors. All provinces and municipalities must adhere to this principle of paying service providers within the 30-day period. Additionally, the department is working with the gender-based violence forum desk, with gender-based violence, GBV victims who are in need of urgent housing assistance. It is for referral purposes and to provide assistance through Emergency Housing Programme.

 

 

We are extremely excited with the fact that; the Informal Settlement Upgrading Partnership Grant comes into effect this year. I know that, this has been a worry of the portfolio committee. We are saying, this grant will support 1 500 informal settlements that we have identified to be upgraded to level three over Medium Term Strategic Framework, MTSF.

 

 

The informal settlements programme is fully funded and therefore means, provinces and municipalities must plan and implement the programme without delay. It is our desire that, the household in the identified settlement the has security of tenure, water and sanitation. We will closely monitor that

 

women and youth contractors are given an opportunity to participate in the upgrading of informal settlements programme.

 

 

We also undertook provincial roadshows where we specifically met MECs to discuss the performance of provinces across the programmes. We took keen interest in the performance of provinces. As a result of this important action, we embarked on roadshows that were directed at those identified provinces, in order to assist them in coming up with a recovery plan towards achieving their quarterly targets. The Eastern Cape and the North West provinces are some of the provinces where we made direct interventions in assisting to resolve their challenges on performance.

 

 

Hon members, in our last year’s statement we indicated that, the Title Deeds Restoration Funding was in its final year in 2021. Again, the portfolio committee was a bit worried about this. We are now saying, the funding for title deeds will come from Human Settlements Development Grant, therefore we are not stopping it.

 

We have again made a commitment to put this programme as part of our focus areas and indeed, we did so; 100% we did so Portfolio Committee of Human Settlements. Hence we can report to this House that, there were about 32 community outreach and information sessions conducted during the last financial year.

 

 

This took place in four provinces where about 17 sessions included handovers of title deeds as follows - listen chairperson of the portfolio committee, I know this is a worrying factor to you. In Gauteng 5 619 deeds were issued, the North West 808, the Northern Cape 156, but in KwaZulu- Natal 3 000 title deeds were successfully handed over in the last three months. We would like to congratulate KwaZulu-Natal on showing us that, this can be done speedily. Therefore, other provinces must do the same.

 

 

Having said so, the slow pace of registration and issuing of title deeds to our housing beneficiaries is of great concern to us. We have since started a conversation in the Minmec to secure the necessary turnaround strategy. We are on record stating reasons for challenges around the provision of housing for our military veterans. The Deputy Minister of the Department of Defence and Military Veterans and I have had

 

numerous engagements on this matter, and some proposals have been put on the table for consideration. Also, with the establishment of the Tash Team of Military Veterans, that is led by the Deputy President David Mabuza, we are hopeful that all matters related to military veterans will find expression.

 

 

Hon members, under the leadership of Minister Sisulu, we are prioritising destitute families for provision of houses. We have participated in many programmes aimed at housing the destitute families which include the elderly, people living with disabilities, child-headed families. Last Friday we had the pleasure of being invited by the MEC of Human Settlements in the Eastern Cape, Ms Nonceba Kontsiwe where we handed over houses to two elderly, 91 and 94-year-old and the child-headed families situated in Amahlathi Local Municipality.

 

 

Hon members, as the deployee and political champion of the Central Karoo District in the Western Cape, I had numerous visits to the Beaufort West Local Municipality where we have been exposed to real life challenges that require our immediate attention. The Director-General, DG Mbulelo Tshangana, had already met with all accounting officers from

 

the province and the municipality to draw up a plan for intervention.

 

 

IsiXhosa:

 

Siyaqhuba asimanga.

 

 

English:

 

Hon members, in March this year, we have done something very progressive where we initiated a programme that involved Deputy Ministers from different departments on a visit to communities of Cofee Bay and Thafalehashe.

 

 

The HOUSE CHAIRPERSON (Mr M L D Ntombela): Hon Tshwete, hon Deputy Minister, thank you very much. Thank you very much Deputy Minister, I would have loved to ... [Interjections.]

 

 

The DEPUTY MINISTER OF HUMAN SETTLEMENTS, WATER AND SANITATION

 

(Ms P Tshwete): Thank you very much Chair.

 

 

Rev K R J MESHOE: House Chairperson, the vision of the Department of Human Settlements is noble: “a nation housed in sustainable human settlements and improved quality of household life.” And the ACDP agrees with this. We welcome the

 

focus on upgrading informal settlements, and affordable housing and rental programmes – as well as the department’s stated promotion of security of tenure.

 

 

In order to achieve the 2030 NDP goals of transforming our human settlements into equitable and efficient spaces that are close to workplaces, social facilities and essential infrastructure, the Department of Human Settlements and its entities need capable leaders and proper financial management. The new budget, which is R31,55 billion in 2021-22, is up by R1,2 billion from the last financial year, is most welcome.

 

 

Most of the increase will go to Programme 3, that will be dealing with informal settlements. The ACDP will watch with great interest to see how many, and which shack dwellers would benefit from this increase as many empty promises have been made since the dawn of democracy. We will also bear in mind the promise made by the President during Sona this year of homes for 68 000 Gauteng households.

 

 

I wonder if the Minister is able to give us a progress update of how many, if any, of the 68 000 Gauteng households the President promised, have at least a foundation in place? We

 

know the desperate and appalling conditions that many residents of Alexandra township live under. The precious people of Alexandra deserve answers to what happened to the R1,4 billion of taxpayers’ money that was allocated for the Alexandra Renewal Project, ARP. This money was supposed to be used to develop the township and build houses for residents who are living in very unhygienic conditions.

 

 

We know that there has been allegations for a number of years that most of the R1,4 billion has gone missing with little or nothing to show for it, and nothing has unfortunately been done about it. Most people who know about this ARP – the Alexandra Renewal Project, are very disappointed that Treasury has not demanded full accountability for the missing funds.

Even though the Minister told us ... [Time expired.]

 

 

Ms G K TSEKE: House Chair, I am hon Tseke G K. Good afternoon Minister Sisulu, hon Members of Parliament, Human Settlements family, hon Chairperson, the ANC supports Budget Vote No 33 which is Human Settlements. Indeed, it has been a challenging year ever since the tabling of the 2020 budget spending. And the priorities have changed significantly due to the advent and the spread of COVID-19 pandemic.

 

The impact of COVID-19 on the economy has forced us to adapt the new normal, resulting to budget adjustment and reprioritisation. The ANC will not be deterred in doing its work, that of providing basic services to our people. We are doing as per the mandate given by the majority of South Africans in our previous elections. The priorities and achievements of the Department of Human Settlements and its entities is a clear indication of the ANC manifesto commitment s and that of the Freedom Charter that there shall be houses, security and comfort.

 

 

Hon Chairperson, based on the current phase of our democracy, the role of state entities remains the integral in the achievement of the developmental goals we have set ourselves. This include eradication of poverty, unemployment and inequality. In the human settlements sector, we have six entities and each of them is expected to play a role in ensuring the Medium-Term Strategic Framework, MTSF, goals are achieved. Whilst acknowledging the work done by these entities of the department in supporting the MTSF goals, there are areas that require improvement and this includes, governance, the use of funds, and enforcing transformation goals.

 

In the recent past, we have approved the Property Practitioners Bill and are keen to ensure that the Minister promulgates the regulations which will give effect to the Property Practitioners Act. We expect that the Property Practitioners Regulatory Authority will ensure much needed an urgent transformation in the property sector or case. It is given that access to property and the accumulation of property plays an important transformation role in poverty eradication and inequality. In addition, broadening the participation of black South Africans in the sector will also contribute access of women and youth in the sector as well as impacting on levels of unemployment of black graduates qualified in the build environment.

 

 

We note the steps that the Social Housing Regulatory Authority, Shra, has taken to ensure that the consolidated capital grant allocated to Shra is effectively used and allocated for the construction of affordable rental housing. It is a concern that Shra has in the recent past not fully utilised and expanded the consolidated capital grant. The development of affordable rental housing is a key programme in the MTSF. It allows for the densification of hotels and cities

 

and ensures that people begin their accent housing ... [Inaudible.]

 

 

We note with excitement and anticipation that fact that the Minister and the department has begun the process of establishing the human development bank. As parliament we note that the establishment of this bank is essential in improving the access of household community developers and contractors to finance and to support the programmes of the department.

The lack of access to funding other than that of government remains a constraint in upscaling delivery. It is also important to emphasise that we must ensure that the funds we provide as parliament and government is leveraged with the private sector.

 

 

It must be noted that resolving our housing and human settlements delivery challenges is a joint effort between government, finance institutions, developers and the community. Another key role of the Human Settlements Development Bank, and now the National Housing Finance Corporation is the management and support in the delivery of the finance link individual subsidies. I think the Minister has spoken about it. The current weaknesses in timeously

 

approving the Finance Linked Individual Subsidy Programme, Flisp, does a disservice to the impact that the programme can have and the department is requested to address this matter with the Human Settlements Development Bank.

 

 

We also note that the department has in the process of amending the Housing Consumers Protection Measures Act with the specific aim of improving the functioning of the work of the National Home Builders Registration Council. As we continue with our building and construction programmes, it is essential that we have adequate measures to protect all the stakeholders, more importantly consumers.

 

 

The Community Schemes Ombuds Service is an entity that has an important role to play in the sector. And in the year ahead, we need to request measures to improve the governance and upkeep of sectional titles schemes, especially those for fully subsidised ... [Inaudible.] This is in particular in relation to education, training and support to the body co-operates.

 

 

We note the efforts of the Minister and the department to improve the governance, the regulations and compliance of all entities within the Department of Human Settlements. This

 

includes eradication on all forms of malfeasance. As a portfolio committee, we have noted with concerns the ongoing poor audit outcomes in the Housing Development Agency, that is the HDA. During the course of this financial year, it has been expected that we pay special oversight attention to ensuring that the HDA not only improves its governance, but its programmes and projects delivery objectives. The HDA has an important role in the current human settlement delivery be it in provinces and municipalities – and must now meet these expectations.

 

 

Let us work together to ensure that everyone has an equal opportunity to access quality housing in our country. The ANC supports this Budget Vote.

 

 

Sepedi:

 

Ke a leboga, Modulasetulo.

 

 

Mr S N AUGUST: Hon Chairperson, 27 years ago after our liberation from apartheid, the state has built and given away millions of fully subsidised homes. This is truly an achievement but despite all this housing delivery, we are still not keeping pace with the needs of expanding urban

 

populations and we have not used the opportunity to integrate our communities.

 

 

We have failed to unstitch the Group Areas Act. Wherever you go in South Africa, you can’t escape the poisonous relationship between space and race. This is particularly pronounced in Cape Town where nearly three decades the municipality has not delivered a single affordable or fully subsidised homes to enable people of colour to return to inner city areas and thus to restore their racial courage. But, Cape Town is sadly not [Inaudible.] You see the same pattern in the rural towns as if zombie town planners just continuously hit the Group Areas Act repeat button.

 

 

New homes for people of colour are developed on the fringes across the highways on the other side of the railway tracks or just plain far away from down town areas and economic opportunities.

 

 

We tend to keep it simple and speed delivery numbers in tis Chamber. It is actually not just about numbers. Our work outside where we are involved in such things as people’s daily struggles for roofs over their families’ heads and assisting

 

new home owners to acquire title deeds is considerably more complex.

 

 

As is, lobbying for special justice is one of GOOD’s core policy positions. We don’t believe that living in colour coded neighbourhoods is sustainable nor is it the interest of integrating our people and developing common purpose.

 

 

Chairperson, with the election on the horizon, we must resist using people’s desperation for homes as political tools. Our people are hungry but are not so naïve. They have seen grand pre-election on human settlement plans and heard about inclusive housing frameworks before. Vote catching exercises calculated to manipulate the emotions of citizens must be avoided in this era of uncertainty, desperation and extreme need.

 

 

The truth is that many of the housing issues played in the nation could have been substantially reduced if there was real political will from politicians backed up by incorruptible administration.

 

As we continue fighting the Covid-19 pandemic, housing requires urgent reprioritisation to get delivery moving so that more people are empowered, live with dignity, comfort and security in homes they call their own. That becomes resalable assets.

 

 

Hon Chair, our democracy is currently going through a major [Inaudible.] test with senior politicians and public servants in and out of court with corruption charges. Thank you Chair.

 

 

Mr A M SHAIK-EMAM: Thank you very much House Chairperson and thank you very much for that presentation by the department Minister and Deputy Minister. I am not sure why many people believe that providing housing is the sole responsibility of the national government. My understanding is that all the spheres of government, the provincial government, the local government have the equal responsibility. So, the easiest thing to come here and find faults on national government is absolutely incorrect because if you find the challenges of housing you find them in the Western Cape, you’ll find them in all the provinces and the municipalities particularly also have a responsibility. That’s the first point I wanted to make.

 

Minister and Chairperson, we must admit that demand for housing far exceeds the supply and the question is whether the municipalities have the capacity and [Inaudible.] to match the demand and that is really not the case. I have previously spoken about the rising service site and the other challenge was [Inaudible.] capacity to be able to provide this public private partnership where they provide the sites individually or the human settlement development and provide funding.

 

 

The question that arises is that if they’re not to spend this and not able to provide the necessary service then maybe we need to consider taking away that mandate from the local and provincial government and take it to the national government.

 

 

Now, the other problem I have is in terms of the social housing and see what happens to the people currently in the Western Cape, 40 years into living there, those people are being [Inaudible.] evicted. These people can barely survive with social grants and pensions that they get.

 

 

Further to that Minister, I would like your intervention to ensure that no further land like is happening in the Western Cape in the city of Cape Town should be sold to foreign

 

developers or big developing companies who are giving funding to political parties at the expense of our poorest of the poorer people who do not have houses.

 

 

I think there needs to be some restriction [Inaudible.] I would also like you to deal with the issue of eviction and farm owners where we could make it a win-win situation together with the municipality where there is [Inaudible] farm owners could provide some through their beneficiation [Inaudible.] process and the municipality providing service sites, farm owners contributing so when these people retire they can actually have houses as well. If you look at the homeless from the streets is increasing considerably [Inaudible.] but the other thing I’d like you to intervene on Minister is the issue of transparency for those people on the waiting list because time and time again we find that people are jumping the queue and getting houses and it all depends on which political party you belong to.

 

 

These are some of the challenges our people are constantly facing. I know that the department has got immense challenges [Interjections.] The NFP will support this Budget vote thank you very much.

 

Mr M R MASHEGO: Thank you, Chairperson. Hon Chairperson, we pledge our solidarity with the people of Palestine and calls for an end to the bombardment of Gaza by Israel.

 

 

The ACTING HOUSE CHAIRPERSON (Ms T M P Joemat-Petterson): Hon Mashego, may I please, interrupt you. I will give you your time. Could you just readjust your video because we cannot see you?

 

 

Mr M R MASHEGO: I don’t know how.

 

 

The ACTING HOUSE CHAIRPERSON (Ms T M P Joemat-Petterson): Hon Mashego, you may continue.

 

 

Mr M R MASHEGO: Hon Chairperson ... [Inaudible.] ...

 

 

The ACTING HOUSE CHAIRPERSON (Ms T M P Joemat-Petterson): ... Hon Mashego, I am again interrupting you. I will give you your time back, you are having problems with your connectivity.

Could you, please, now switch off your video camera so that maybe we could hear you better.

 

 

Mr M R MASHEGO: ... [Inaudible ...

 

The ACTING HOUSE CHAIRPERSON (Ms T M P Joemat-Petterson): Hon Mashego, switch off your video. Let us try again. Hon Mashego! Could we receive an explanation ... Hon Mashego ... Yes, you can continue.

 

 

Mr M R MASHEGO: Hon Chairperson, I said we pledge our solidarity with the people of Palestine ... [Inaudible.] ...

 

 

The ACTING HOUSE CHAIRPERSON (Ms T M P Joemat-Petterson): ... Hon Mashego! Hon Mashego, your connection is really failing you today. Could I please find out from the Chief Whip of the ANC if we have someone to read the input of hon Mashego.

 

 

Mr M R MASHEGO: ... [Inaudible.] ... you can’t hear me?

 

 

The ACTING HOUSE CHAIRPERSON (Ms T M P Joemat-Petterson): ... your connection is very bad. Now we have lost you completely.

 

 

Mr M R MASHEGO: Where else do I go now?

 

 

The ACTING HOUSE CHAIRPERSON (Ms T M P Joemat-Petterson): Hon Mashego ...

 

Mr M R MASHEGO: Yes, I am here. I am here, Madam.

 

 

The ACTING HOUSE CHAIRPERSON (Ms T M P Joemat-Petterson): Let us listen again to you.

 

 

Mr M R MASHEGO: What must I try now? ... [Inaudible.] ... Can you hear me now? I am trying my best.

 

 

The ACTING HOUSE CHAIRPERSON (Ms T M P Joemat-Petterson): Yes, we can hear you better. You can start again.

 

 

Mr M R MASHEGO: Okay. Hon Chairperson, we pledge our solidarity with the people of Palestine and calls for an end on the bombardment of Gaza by Israel. ... We call for the two states solution based on the ... [Inaudible.] ... 1967 boarders to bring about peace in the land.

 

 

Hon Chair, the African National Congress support Budget Vote 2021-22 financial year of the National Department of Human Settlement and its entities. We acknowledge the economic strain the Covid-19 pandemic has had on many programmes since the tabling of the budget in 2020. The housing demand has increased while the house sizes have reduced and the

 

urbanisation has rapidly increased. For these reasons the Medium-Term Strategic Framework 2020-24 is focused on three specific interrelated outcomes related to human settlement sector specifically namely; the spatial transformation through multipurpose integration in priority development areas, secondly, an adequate housing and improved quality living environment and the security of tenure.

 

 

The Department of Human Settlement and its supporting entities have revised their strategic plans and annual performance plans to ensure that the targets are aligned and reflect the Medium-Term Strategic Framework 2019-24 and the overriding practise of the financial year 2021-22. The African National Congress applauses the Department of Human Settlement in its cohesive leadership in ensuring that the lives of the people of South Africa is transformed and indicated in the ANC manifesto commitment on building sustainable human settlement hence transform the special legacy of apartheid and build a more inclusive society and the response to the priorities as set out in the state of the nation address, Sona, 2021.

 

 

We welcome the department’ focus on the medium-term which is; to transform and defeat the Covid-19 pandemic, accelerate

 

economic recovery, implement economic reforms and create sustainable jobs ... [Inaudible]... and fight corruption. The department successfully identified and consulted on the ultimately gazetted 136 priority development areas referred to as priority human settlement and housing development areas. In the National Government Gazette of 15 May 2020, the declaration of this phase of these 136 priority development areas, heralded the next phase in the department trajectory of special targeting and achievement of the Medium-Term Strategic Framework. The original target was 94 and the department far exceeded the target by delivering 136 priority development areas. Hon Chair, the allocation of the Budget Vote 33 will ensure performance of all programmes and not leave any programme behind. The average budget allocated increased by R1,2 billion from R29,7 billion in 2020-21 financial year to R31,5 billion as member Meshoe already said in 2021 financial year.

 

 

The budget allocation has increased from R648,2 million to R8 billion in terms of developing the informal settlement as hon Meshoe was saying earlier on. Hon Chair, previously the upgrading of the human informal settlement programmes grant was a component of human settlement before. The urban

 

settlement development grant will now be a stand-alone in April 2021 in order of us to can achieve this increase to R8,4 billion. It is for this reason that the ANC welcomes the Department of Human Settlement Development District Development Model, DDM, which is the government wide integrated district based approach aimed at addressing the service delivery challenges, improving localisation and job creation. The ANC wishes to commend the department together with the supporting entities; provincial and local government in working together in an integrated system for the purposes of this service delivery.

 

 

The ANC notes the efforts of the Minister to improve governance, regulations and compliance of all entities. This includes eradication of all forms of maleficence. We note however the steps that the Social House Regulatory Authority has taken to ensure that the consolidated capital grant allocated to the Social House Regulatory Authority, SHRA, is efficiently used and allocated for the construction of affordable rental houses. It is a concern though that the Social House Regulatory Authority has in the recent past not fully utilized and extended the consolidated capital grant. The development of affordable rental housing in a key

 

programme in the Medium-Term Strategic Framework, MTSF, it allows for the densification of our towns and cities and ensure that people begin their ascent in the housing ladder.

 

 

As for the portfolio committee we have noted the concerns which concern the ongoing poor audit outcome of the Human Development Agency, HAD, during the course of this financial year. It must be expected that we will pay special attention oversight to ensure that the HDA not only improve the governance but also its programmes and project delivery objectives. The HDA has an important role in the current human settlement delivery chain in provinces and municipalities and must now meet those particular expectations. The ANC notes with concern the matter of the department constantly having unspent funds. We wish to implore the department to ensure spending of these funds. The ANC notes with concern the ... [Inaudible] ... of funds for the Human Settlement Development Grant 2021-22.

 

 

We are also concerned of provinces like the Western Cape and KwaZulu-Natal who have used the Urban Settlement Development Grant, USDG, to pay salaries instead of developing townships that have far dilapidated infrastructures but they use those

 

particular funds to pay salaries. We want to get the consequence management from the department as to what do they do about those particular two provinces ... [Inaudible] ... that claim to be clear on matters of expenditure. The ANC is also concerned that there is poor expenditure in the title deed programme in the ... [Inaudible] ... financial year despite that there be a huge backlog in the issuing of these title deeds. We have heard the Deputy Minister, the programme that she had, but we are still raising these concerns because the title deed is something that give dignity to our people. The ANC wishes to congratulate the department of ... [Inaudible] ...  implemented in nine provinces as spoken about.

 

 

Chair, we must say from the ANC point of view, look, we hear what hon member Powell is saying, she is really blinded by colour that she does not care that the Urban Settlement Development Grant, USDG, ... [Inaudible.] ... to develop our townships in the Western Cape where the DA is leading - that they take the money to pay salaries - because to them, black lives does not matter as long as white people benefit ... [Inaudible] ...     she is very proud of that. We can even hear from the input made by ... [Inaudible.] ...  that in their

 

view white people must always be superior than black people and therefore it does not matter for as long as whites are benefiting better than blacks ... [Inaudible.] ... The ANC supports this Budget and believes that it will deliver better the lives of our people. Thank you, Chairperson.

 

 

The MINISTER OF HUMAN SETTLEMENTS, WATER AND SANITATION:

 

Chairperson, I would like to thank hon members from the ANC. I would like to thank hon member Shaik Emam and the representatives of the IFP and the ACDP for their inputs. They were very productive. The rest is something else. I would like to convey a caution to the member of the DA ... that the worst performing province, in so far as informal settlements ... [Inaudible.] ... is this one where she is. There have been ...

in Masiphumelele, in Taiwan, and other areas. We had a tragedy in Vukuzenzele where four young boys died. She was nowhere to be seen. She is just a grandstanding, empty representative of nothing; absolutely nothing. And anything that she has to say now is just a waste of our time. We have lost a number of people ... [Inaudible.] ... in the COVID period and we would like to ...

 

Mr W F FABER: Chairperson, point of order please. Chairperson, point of order.

 

 

The CHAIRPERSON (Ms T M Joemat-Pettersson): Hon Minister, there is a point of order.

 

 

The MINISTER OF HUMAN SETTLEMENTS, WATER AND SANITATION: As

 

long as he doesn’t take of my time.

 

 

Mr W F FABER: Chairperson, on a point of order: Rule 82 — reference to a member in respectful terms. The hon Minister in the House and in the mini-plenary session ... must refer to one another in respectful terms, and we want her to retract what she just said please.

 

 

The MINISTER OF HUMAN SETTLEMENTS, WATER AND SANITATION: Allow

 

me to continue and I’ll consider that. She has not ...

 

[Inaudible.]

 

 

The CHAIRPERSON (Ms T M Joemat-Pettersson): You may continue, hon Minister.

 

 

you very much.

 

 

Mr W F FABER: Chairperson, you must rule on my point of order.

 

 

The MINISTER OF HUMAN SETTLEMENTS, WATER AND SANITATION:

 

[Inaudible.] ... Chairperson, I said I will ... [Inaudible.]

 

 

Mr W F FABER: I will keep on interrupting the Minister till you ... [Inaudible.]

 

 

An HON MEMBER: You are out of order too! Listen to the Chair!

 

 

Mr W F FABER: But Chairperson, then rule on that!

 

 

The CHAIRPERSON (Ms T M Joemat-Pettersson): Hon Faber, could you wait for the Minister to apologise please?

 

 

The MINISTER OF HUMAN SETTLEMENTS, WATER AND SANITATION:

 

Chairperson, I will consider that.

 

 

The CHAIRPERSON (Ms T M Joemat-Pettersson): You may continue, hon Minister.

 

 

you very much. Despite the many challenges that we may have

 

... [Inaudible.] ...

 

 

Mr W F FABER: Chairperson, on a point of order: The Minister cannot say she will consider. Chairperson?

 

 

The MINISTER OF HUMAN SETTLEMENTS, WATER AND SANITATION: ...

 

is the fact that no country has ever delivered freely what we have delivered for our people. Nobody. We even delivered on behalf of ... [Inaudible.]

 

 

Mr W F FABER: Chairperson, on a point of order!

 

 

The CHAIRPERSON (Ms T M Joemat-Pettersson): Hon Minister?

 

 

The MINISTER OF HUMAN SETTLEMENTS, WATER AND SANITATION: Yes,

 

ma’am?

 

 

The CHAIRPERSON (Ms T M Joemat-Pettersson): Hon Minister, apologise and continue please.

 

The MINISTER OF HUMAN SETTLEMENTS, WATER AND SANITATION: I am

 

not aware that there is anything to apologise for. He would need to put it down. What is it that I need to apologise for? I said that I would consider that. We have many sessions. I’ll come back to ... [Inaudible.]

 

 

Mr W F FABER: No, no, no, no!

 

 

The CHAIRPERSON (Ms T M Joemat-Pettersson): Hon Faber? Hon Faber, I will consider this. I have ruled that the Minister continues. Hon Faber, if you continue interrupting the Minister I will lock you from the platform. You will be offloaded. Could you please continue, hon Minister?

 

 

Mr W F FABER: Chairperson, as a Chairperson you must rule and

 

I’ve asked you for a ruling.

 

 

The CHAIRPERSON (Ms T M Joemat-Pettersson): Hon Faber, I have ruled that the Minister can continue. Thank you.

 

 

The MINISTER OF HUMAN SETTLEMENTS, WATER AND SANITATION: Thank

 

you, hon Chairperson. I want to say that we cannot deny the fact that, despite the many challenges that we have, no other

 

country in the world ... no other country ... has delivered as many houses as we have, freely, to the poorest of the poor.

What amazes me is the matter that was raised by the imam, to indicate that actually housing delivery starts at municipal level, goes up to provincial level and finally we oversee all of that.

 

 

The Western Cape is the worst deliverer in the area of housing, and here we have people grandstanding on something that they themselves have not been able to deliver. We have had tragedies in this province, where we went, together with the Minister of Social Development and together with my staff

to ... all these tragedies in Masiphumelele, in Taiwan, in Vukuzenzele. She was nowhere to be seen. She comes here ... grandstands on something that is actually meaningless to the lives of our people. [Interjections.]

 

 

The highest number of informal settlements is here in the Western Cape. That’s where she should be giving her attention and putting all her efforts ... instead of coming here and being very derogatory about my staff.

 

I would like to thank the Deputy Minister. I enjoy working with her. It’s a pleasure working with her. I would like to thank the director-general and the deputy director-general in my office in the department and I would like to thank the staff that has supported me, especially the staff in my office. I want to pay tribute to all those people whom we have lost in the environment of Human Settlements through the COVID pandemic. Chairperson, thank you very much for the time and I hope that we will have another opportunity with the portfolio committee to challenge the hon member of the DA on the scandalous things she has being saying here about the people who work under my command. She has absolutely no right to make those kinds of ... [Inaudible.]

 

 

The CHAIRPERSON (Ms T M Joemat-Pettersson): Thank you, hon Minister. Your time has expired.

 

 

Mr W F FABER: We thank you, Minister. We thank you.

 

 

The MINISTER OF HUMAN SETTLEMENTS, WATER AND SANITATION: Thank

 

you very much. [Time expired.]

 

 

Debate concluded.

 

The mini-plenary session rose at 15:56.

 

 

 

 

 

 

 


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