ATC120910: Report on the follow-up oversight visit by the Portfolio Committee on Human Settlements to the Eastern Cape, dated 8 August 2012

Human Settlements, Water and Sanitation

Report on the follow-up oversight visit by the Portfolio Committee on Human Settlements to the Eastern Cape, dated 8 August 2012

Report on the follow-up oversight visit by the Portfolio Committee on Human Settlements to the Eastern Cape , dated 8 August 2012

The Portfolio Committee on Human Settlements, having conducted an oversight visit to the Eastern Cape on 27 November to 2 December 2011 in relation to the implementation of the human settlements strategic plans, projects and programmes , reports as follows:

1. Background

In terms of the RSA Constitution of 1996 and Parliamentary Rules, the Portfolio Committee on Human Settlements (the Committee) has a responsibility to conduct oversight over any executive organ of State that falls within its portfolio. In line with this mandate, the Strategic Plan of the Committee undertakes to conduct provincial visits to oversee the implementation of project plans and programmes. The Committee also undertakes to evaluate progress made and identify any challenges encountered in the implementation processes. Furthermore, the Committee seeks to promote and enhance co-operative governance principles in the Human Settlements delivery services. To fulfil its strategic plan the Committee conducted an oversight visit to the Eastern Cape during the third term of the Parliamentary Programme from 27 November to 2 December 2011.

1.1 Objectives of the visit

The objective of the oversight visit was to receive briefings from the MEC and the Provincial Department of Human Settlements on the findings and recommendations made by the Committee after conducting an oversight visit in 2009 in relation to the Eastern Cape human settlements projects. The Committee was briefed on the following issues:

· Progress on the recommendations made by the Committee during 2009 oversight visit;

· Implementation of a comprehensive integrated human settlements strategy in the province;

· Performance in meeting service delivery targets set for 2010/11 and challenges encountered and whether there has been value for money;

· The role played by the public and private sectors in service delivery;

· Plans, programmes and progress in the implementation of rural sanitation;

· Plans, programmes and service delivery targets for 2011/12;

· Progress report in support of the disaster-affected communities;

· Blocked projects and plans to unblock them;

· Progress in the implementation of the Urban Settlements Development Grant (USDG);

· Status on audit of poorly constructed houses and cost implications for rectification of such houses;

· The number of informal settlements, the plan and the progress in upgrading such settlements, including community residential units ( CRUs );

· Progress in the implementation of Farm Worker Assistance Programme;

· The coordination and management of the beneficiary list and the incorporation of backyard dwellers into the provincial housing database;

· The use of alternative technologies in the construction of houses.

2. Delegation

The multiparty delegation consisted of Ms BN Dambuza (ANC), Chairperson of the Committee and leader of the delegation; Ms JE Sosibo (ANC), Whip of the Committee; Ms D Dlakude (ANC); Ms AC Mashishi, (ANC) Mr AC Steyn (DA); Mr MA Figlan (DA) and Ms M Njobe (Cope).

2.1 Officials from the national Department of Human Settlements

The delegation was accompanied by Mr L Jolobe , Chief Director: Transformation; Ms M Pine, Office Manager: Transformation; Ms T Mabalane , Deputy Director: Peoples Housing Process; Mr M Kraba , Director in the office of the Director-General; Ms N Thembani , Director: Rental Housing; Ms B Mkhabeli , Deputy Director: Strategic Management; Mr N Cele , Deputy Director: Project Implementation Support; Ms B Makou , Senior Secretary to Director: Rental Housing; Mr J Methula , Director: Stakeholder Management; Mr A Matshego , Deputy Director: Sector Information Management; and Ms A Qushu , Chief Planner: Monitoring and Evaluation.

2.2 Officials from the provincial Department of Human Settlements

The delegation was accompanied by Mr S Nojoko , Regional Director: Amathole ; Ms O Njontini , Senior Regional Manager: OR Tambo District; Ms N Koyana , Director: Social and Rental Housing, Ms M Ndo ni , Deputy Director: Nelson Mandela Metro; Mr W Perks, Regional Director: Cacadu ; Mr B Panda, Regional Director: Chris Hani District; Ms N Mntwini , Acting Chief Director: Strategic Management; Mr DA Mpendu , Chief Director; Ms T Nzuzo , Chief Director: Legal Advice Services.

2.3 Parliamentary officials

The delegation was accompanied by the following parliamentary officials: Ms K Pasiya , Committee Secretary; Mr G Rhoxo , Acting Committee Secretary; Mr L Tsoai , Committee Researcher, and Ms K Tshoma , Committee Assistant.

3. Summary of the report

The delegation received briefings from the Eastern Cape Department of Human Settlements and from different districts and municipalities ( Amathole , Chris Hani , OR Tambo and Nelson Mandela Bay Municipality ). The briefings mainly focused on the progress made on service delivery implementation, compliance with policies and legislative prescripts and the impact of such policies in changing the lives of the people for the better. In addition, the briefings also touched on whether there was value for money as well as challenges facing the province in implementing such programmes and policies.

4. Overview of the meetings and site visits (27 November 2011)

4.1 Meeting with the Department of Human Settlements

The delegation was welcomed by the MEC for Human Settlements and Safety, Ms H Sauls -August. The MEC informed the delegation that the province had developed a new Delivery Service Model that would respond to institutional challenges. The province had taken a resolution to reduce its delivery targets and the national Department of Human Settlements had agreed to the new targets.

The province had launched Zanemvula Multi-Purpose Centre and Ngqura project. Some municipalities had failed to implement the projects and hurled them to the province. The national audit task team on sanitation led by Ms NW Madikizela-Mandela visited the province to audit the status of sanitation, and the province was awaiting the outcome. There had been a huge expectation about service delivery in province but the province was encountering challenges with bulk infrastructure. Nevertheless, the province was intending to engage the financial institutions to assist with the installation of bulk infrastructure.

The Chairperson of the Committee, Ms Dambuza, welcomed the opportunity given by the MEC to the delegation to exercise its constitutional mandate. She also appreciated the presence of representatives from all spheres of government, including other relevant departments. She further praised the province for proper coordination of the visit compared to the previous visits when other spheres of government were not part of the initial briefing session. The Chairperson, as the leader of the delegation, presented the objectives of the visit and reiterated the recommendations made by the Committee during its previous oversight visit in 2009 as follows (in summary):

1. The Committee strongly recommended that every development should comply with the Human Settlements principles and policies Breaking New Ground (BNG). Houses which are handed over to beneficiaries should conform to these principles. Each house should be equipped with access to water, sanitation and electricity as these are basic rights for each and every citizen. If some of these services in selected circumstances cannot be provided on a permanent basis, temporary arrangements should be put in place. Greening projects, as well as sports grounds, have to be built in places where people reside.

2. Intergovernmental and intra-governmental planning should be seriously considered to address the bulk infrastructure and provide sustainable human settlements (all amenities).

3. The national department should consider a national policy to coordinate and manage beneficiary lists that would take into account the active public, municipalities and provincial participation, e.g. housing forums.

4. Municipalities that have appointed implementing agents to act on their behalf should take charge of the development as this is a delegated responsibility.

5. Project managers have to reside closer to the projects which they were managing.

6. Project inspections by the provincial department should be conducted properly to ensure that good quality projects were completed on time.

Mr G Sharpley , the Head of Department (HOD): Human Settlements and his senior officials reported on progress on the recommendations as highlighted in the 2009 oversight report as follows:

  • The provincial department worked closely with municipalities to ensure compliance with electricity connections and access to water and sanitation in all housing developments. In rural housing projects, a rainwater tank for water harvesting and Ventilated Improved Pit (VIP) were provided. In urban housing developments, the department was challenged by the lack of infrastructure to which each should link internal services. He further confirmed challenges affecting human settlements projects in Malitswai and Ikhwezi local municipalities, which included blocked projects, as well as alleged irregularities around the project management and inappropriate utilisation of state subsidy houses.
  • The provincial department was also supporting 39 municipalities in the development of Human Settlements chapters of nntegrated development plans which emphasized alignment of the Human Settlements Development Grant with municipal infrastructure plans. In 2011/12, the Housing Needs Register was introduced. It was also guiding municipalities in the establishment of housing allocation committees.
  • The provincial department was involved in the King Sabatha Dalindyebo Presidential Initiative where intergovernmental and intra-governmental planning principles were a practical test and the provincial department formed part of the steering committee. The project was set to deliver 17 450 units, (650 low-cost housing and the rest was earmarked for gap market opportunities). The province had committed R141 million for the project. An amount of R86 million was allocated for the planning phase for 2011/12 and R41 million had already been released to address bulk infrastructure challenges.
  • The provincial department was implementing the national minimum norms and standards for a 40 house. Tender specifications were developed along pre-determined norms and standards. Project inspections sought to enforce compliance with the set norms and standards.
  • As part of its comprehensive contract management strategy, the provincial department was engaging municipalities on the implications of the service delivery agreements that the province entered into with municipalities that were appointed as developers of housing programmes and projects. This included institutionalising performance reporting by municipalities. The USDG-benefiting municipalities were not ready to embrace the grant implementation and the province was in the process of finalising the intergovernmental relations protocol.
  • All projects (13 000 units) for 2011/12 were enrolled with the National Home Builders Registration Council (NHBRC). However, the province reported that 53 000 of the previously constructed units had been assessed. A decision was taken not to conduct any assessment of units less than 28 m², but to demolish them. Furthermore, the NHBRC would not be part of the implementation of rectification as it could not be a regulatory body and an implementing agent (referee and player).
  • In her response to the management of the beneficiary list, the MEC indicated that the provincial standing committee proposed that the beneficiary list should be gazetted to prevent irregularities and maladministration by the municipalities. The province would consider the matter and table it for discussion in the national workshop which would be held in February 2012.
  • The Cala and Elliot projects which were allocated to emerging contractors were being investigated by the Special Investigating Unit. In Sundays River , the province was in the process of unblocking five blocked projects. An amount of R21 million had been allocated and four contractors were on site.
  • The province had strengthened its monitoring and evaluation unit to verify whether houses were completed in line with the required norms and standards and the MEC had launched a “Know Your Project” campaign.

Having responded to the recommendations, the HOD presented provincial plans for 2011/12 as follows:

· Departmental Priorities for 2011/2012;

· Progress report on priorities;

· Progress on delivery targets;

· Planned recovery on housing delivery;

· Expenditure as at 30 September 2009 and recovery plan;

· Roll-out of new Service Delivery Model (SDM);

§ Background to SDM;

§ Addressing key institutional capacity constraints;

§ Capacity of municipality as developers;

§ Beneficiary management issues;

§ Enhancing Provincial Human Settlements Policy Framework;

§ Medium and long-term human settlements planning.

4.1.1 Departmental expenditure as at 30 September 2011

Budget allocation for the financial year

R 2.425 billion

Total expenditure from 1 April to 30 September 2011

R 841, 399 million

% expenditure to date

34.9%

Budget allocation

Budget

Expenditure

% expenditure

Equitable share

246,555

120,452

49%

Conditional grant

2,178,387

726,946

33%

TOTAL

2,424,942

847,398

35%

4.1.2 Concerns and comments by the delegation

The delegation welcomed the presentation and commented as follows:

1. The provincial department should consider using alternatives sanitation rather than the Ventilated Improved Pit (VIP) latrine as lack of maintenance of those can become hazardous to communities. The province should have a provincial steering committee for sanitation to accelerate delivery especially in rural areas. The provincial department was advised to consult the Council of Scientific and Industrial Research (CSIR) for building materials which will help the department to reduce costs.

2. Greening needed to be fostered and the communities should be encouraged to look after their gardens and tree that were donated. Non-governmental organisations should be unleashed to make sure that every house is reached.

3. The housing allocation committee should assist in identifying the communities that are in need of houses and it should also work with municipalities. The committee should also assist in management of beneficiary list.

4. The contractors should not act on behalf of the councillors by handing over houses and giving beneficiaries’ happy letters to sign. As most of the time those houses were not inacceptable conditions and some houses were not completed.

5. Despite the report presented, the National Home Builders Registration Council was still facing challenges with enrolments of projects. Most units were not enrolled with the Council. A report showing the number of houses enrolled, registered and inspected was requested to be forwarded to the Committee.

6. The department should not appoint the same contractors that constructed inferior work to do rectification. The department should also forward the list of all blocked projects to the Committee

7. The delegation requested the provincial department to forward a report in the Voucher Scheme programme that was piloted in Umhlontlo and Mzimvubu municipalities. It further requested that an exact number of houses that required rectification should be provided to the Committee. A list of planned projects with timeframes as well as the list of blocked projects should also be made available to the Committee.

4.1.3 Provincial responses to the delegation’s deliberations and comments

1. In responding to disaster intervention, it was reported that an amount of R56 million has been received to address the backlog. The province was developing a plan to respond to future disasters and the report would be forwarded to the Committee.

2. With regard to blocked projects, the province reported that it had 40 blocked projects, of which some were inherited from Thubelisha . For the following projects, namely Ngquza Hill, Mt Ayliff and Mt Frere , it was reported that contractors had been appointed to unblock them. The Kenta Developer contract was terminated in March 2011. The provincial department undertook to provide a list of planned projects to be unblocked in some areas such as Cacadu District Municipality , Nelson Mandela Bay Municipality (NMBM) and the Buffalo City Municipality . In Maclear in Ukhahlamba District Municipality , a contractor which was appointed to construct 220 units withdrew due to a lack of access roads to the project. It was reported that a decision was taken that all projects above R5 million would have to be approved by a tender board.

3. Rectification programme – Matatiele projects were set for 2012/13, and the Zimbane Waterfall project was waiting funding from the national department. In NMBM a re-rectification was done. In Ducats second level assessments were conducted and the rectification would be implemented in 2012/13. It was also discovered that there were only eight sites that were suitable for development on the vacant land. Temporary shelters were provided. In Sweet Waters a contractor’s contract was terminated due to non-performance.

4. Contractor development programme – 17 contractors were trained in NMBM and the provincial department was assisting with mentorship.

5. Alternative technology – 28 companies were registered, however only seven qualified with every specification. Projects were allocated for construction at Port St John’s, Matatiele and OR Tambo rural areas. In terms of Molterno Airstrip projects, services had been installed. However it was reported that alternative technology would no longer be implemented. The project was on open tender and 500 units were targeted. The project where 1127 units were to be constructed was also challenged by bulk infrastructure provision and the beneficiary list registration.

6. In Ducat, pit latrines have been emptied and some repaired. However, the province had requested the Buffalo City Municipality to incorporate Ducats in its plans.

7. With regard to office space, the provincial department indicated that it had purchased land in King Williams Town where it was going to construct its offices and also accommodate the sanitation team.

8. The Development Bank of Southern Africa has a People’s Housing Process project in Mqanduli and was also providing training to skill the communities.

9. On the issue of illegal occupancy, the province was collaborating with the police to remove illegal beneficiaries and was trying to bring on board the eligible beneficiaries, thus include challenges in Jansenvelle , Klipplaat and Dansandi .

10. It was also reported that the province had 650 projects in its database.

11. In regard to research capacity, the province indicated that it was in the process of signing an agreement with Nelson Mandela Bay University .

12. The risk management plan had been presented to the provincial risk management committee.

Another challenge raised by the province was the issue of NMBM’s revolving fund (estimated over R100 million) which was established in 2002. It was alleged that the NMBM used this fund to initiate projects without approval by the province, thus making it difficult for the province to monitor as these did not form part of the provincial project database. However, it was reported that R120 million had been approved by the province for 2011/12. Furthermore, there was reluctance by the NMBM to report on USDG expenditure, stating that it would report directly to National Treasury.

The Head of Department: Human Settlements further reported that the priority projects were doing well in the province. He mentioned challenges with regard to the acquisition of land. He made reference to a farm in Orange Groove that was being sold for R15 million but after three years of struggling, the farm was evaluated and the negotiated price came down to R3,2 million. The provincial department reported that eight land parcels would be made available on this farm.

There was a challenge when it came to rectification. The policy indicated that houses that were due for rectification (less than 28 m²) should be rectified according to the current specification. This raised questions from community members whose units were less than 28 m² and whose unit had no serious defects.

Assessments of staff were conducted and reassignments were done according to their skills and capacity. In regard to Amalinda Housing Co-operatives, the Chief Director: Transformation, Mr Jolobe , was seconded from the national Department of Human Settlements on a two-year contract to assist the province. The co-operative was challenged by the lack the bulk infrastructure. Temporary structures were requested (63) and the beneficiaries were reported to have a preferred contractor to build their houses, which posed a challenge for the provincial department. With regard to office space, the provincial department was building offices for the sanitation team but the provincial department was not going to manage the team. The department had found value in the Housing Development Agency as a developer in the Nelson Mandela Bay Municipality and as a land inquisitor in some areas.

4.2 Meeting with Buffalo City Municipality (28 November 2011)

The Buffalo City Municipality was led by Councillor Stella Osborn, who tendered apology for the Executive Mayor, Clr Z Ncitha , who attended the COP17 Summit.

A brief overview of the purpose of the meeting was outlined by the leader of the delegation. She pointed out that through its oversight visit the delegation intended to ensure that funds appropriated by Parliament were being spent effectively and efficiently and in accordance with the mandate of government. She explained that the delegation was especially interested in the expenditure of the Urban Settlements Development Grant (USDG), a new grant allocated to some of the municipalities such as the Buffalo City Municipality . The delegation was also interested in the plans to mitigate the effects of climate change and plans that would ensure an appropriate response to climate change in accordance with goal seven of the Millennium Development Goals, namely universal access to improved basic sanitation services and improving lives of the people living in informal settlements.

Mr D Govender , Project Manager, briefed the delegation. The municipality was working closely with the national Department of Human Settlements. The municipality had 230 rural villages, 154 informal settlements. Eighty four informal settlements were in Mdantsane and some were due for formalisation. Land ownership was a challenge in the municipality. However, state land was in abundance but the land parcels from the parastatals were costing much. The municipality was using alternative technology in some projects, especially social housing projects.

The municipality had established a new housing register for the upgrading of informal settlements. It had a plan to upgrade 14 informal settlements by 2012/13. The municipality required R53 million for the eradication of inadequate sanitation (chemical toilets). Nevertheless, the municipality had decided to provide semi-permanent ablution blocks to avoid wastage of capital as the blocks would be demolished in due course. A detailed study on informal settlements was concluded and would assist the municipality in moving towards more integrated development. There were plans to concentrate on rental social housing in Bisho and King Williams Town and those were underway. It was also reported that the municipality had blocked projects that arose during the time of Thubelisha .

The municipality had a challenge in bringing people closer to the city. It was hindered by civil infrastructure capacity, under development and maintenance. Most of the projects did not have access roads and had insufficient bulk water supply. Mzomnyama Dam level has been reducing thus resulting in limited water supply for treatment works. Beneficiary management remained a challenge. Reluctance by Eskom to electrify completed houses was a challenge thus resulting to vandalism of such units as benefeciaries were refusing to occupy uneletrified house.

Following the presentation by the municipality, the delegation raised the following issues:

· Most of the projects that were reported on were still at tender stage.

· The prioritisation of rural sanitation was very crucial, as well as the need for the municipality to work with research institutions on the issue of sanitation and the related backlog.

· The Housing Development Agency should be fully involved in the release and acquisition of land.

· The municipality should ensure the credibility of the beneficiary list and the municipality should involve the community in the management of the list.

· The allocation of emergency housing to disaster victims should be shortened.

· Registration of local social housing institutions with the Social Housing Registration Authority had to be fast-tracked and those should be capacitated for accreditation.

· There was a need for a common definition of the bucket system; therefore the national department had to provide a standard definition.

· The provision of pit toilets was not sustainable.

· Accreditation of municipalities should not be for the sake of compliance but there should be existing capacity on the ground.

· Development of a strategy to harvest and conserve water (provision of Jojo tanks) should be considered seriously, especially in rural areas.

· Use of the Urban Settlement Development Grant (USDG) for purposes other than sanitation and development of infrastructure was a concern.

· In the absence of a policy on backyard dwellers there was a need for a national policy on backyard rental.

· Compliance with the current policy on rectification was very critical. Rectification would be done in accordance with current specifications as part of restoring human dignity.

· The upgrading of informal settlements had to be prioritised.

· It was necessary to have an integrated strategy in terms of both rural and urban development.

The delegation requested that the municipality furnish the Committee with the following reports:

· Status report on blocked projects;

· Strategy aimed at job creation, including the number of jobs to be created and the type of skills to be transferred.

· Plans to assist families affected by disasters.

· Housing backlog;

· List of registered and accredited social housing institutions;

· Duncan Village rectification and progress to date.

The councillor responsible for Human Settlements, Mr Mahodi , informed the delegation that the calendar (financial year) of the municipalities and that of the national departments was not synchronised and was a challenge for the municipality.

The council inaugurated in 2011 decided to hold a strategic session and involve all directors in order to ensure alignment of plans to key spatial planning frameworks. The traditional leaders have been inaugurated to play a key supporting role to the council in order to address the development challenges experienced in rural development. It was reported that research on backyard dwellers had been conducted and hence there was no rental policy at the time and that bylaws would be applicable.

With regard to disasters, the province was providing emergency houses within seven days; however there was a need to develop a policy on determining the destitute. Rectification of phase 1 was completed but Duncan Village was not been completed due to a funding shortfall. Some contractors also added to the challenges affecting development as they encountered cash flow problems. The involvement of the CSIR had played a tremendous role in providing foundations. The Housing Development Agency was assisting the municipality with the identification of land. However, there were challenges with land owned by Department of Public Works.

4.3 Meeting with the Executive Members of the Amalinda Housing Co-operative

The leader of the delegation informed the meeting that the Committee received a complaint from the Amalinda Housing Co-operative in 2010. The provincial department and the Buffalo City Municipality were assigned to assist the co-operative and resolve the challenges encountered. The Committee observed that the national department did not take the development of the co-operative seriously, and therefore no policy was dedicated to it. The national department placed the co-operatives under social housing, of which these two have different principles. The Committee raised concerns over this arrangement because the principles of co-operatives are different from the principles of social housing.

The Chairperson of the Amalinda Housing Co-operative, Ms N Bottoman , briefed the delegation on the challenges encountered by the co-operative since its inception. T he Amalinda Housing Co-operative was established in 1998 and was formally registered on 30 June 1999 with a membership of 198 households. The majority of the people comprising these households were unemployed or having irregular income. The co-operative followed the Peoples Housing Process, using institutional housing subsidies. A list of names of beneficiaries was approved by the department in 2002.

The Head of Department: Human Settlements had assisted the co-operative with 63 temporary structures. It was difficult to allocate members but the co-operative managed to settle some beneficiaries. There were only 196 beneficiaries approved out of 216.

The delegation requested Mr L Jolobe to assist the Amalanda Housing Co-operative in resolving the challenges and to report progress to the Committee. The delegation further recommended that the councillors should be involved and take part in the decision-making process in regard to housing delivery.

4.4 Site visit to Duncan Village pilot project

The project was started in 2010 as a pilot project under the Breaking New Ground (BNG) policy to showcase various housing typologies, which included semi-detached units and walk-ups. The project was located in close proximity to central businesses and social amenities. Most of the beneficiaries who qualified for a full housing subsidy earned less than R3 500 per month. The sizes of the units ranged from 40 m 2 to 48 m² with allowances made for stairs. In total there were 344 units whose beneficiaries would be issued with title deeds. The project was due for completion in 2011.

Beneficiaries would be relocated from Duncan Village on completion of the project. This was going to be done based on the subsidy quantum. A technical committee was established to monitor progress on the construction of units and was working closely with the provincial Department of Human Settlements.

The delegation was also informed of a budget shortfall of R1.4 million. The reason for the shortfall was that the municipality had experienced a legal challenge in the appointment of a contractor and the court ruled in favour of the contractor.

During the site visit the contractor raised issues of delayed payment and non-payment on the part of the municipality. Payment was therefore not done within the stipulated 30-day period, which was in contravention of the Public Finance Management Act (PFMA). According to the contractor, the municipality gave him more than one beneficiary list which caused confusion over which beneficiary list was the correct one. The delegation advised that completed houses should be allocated to beneficiaries for occupation as soon as possible.

The Chief Director, Mr Nojoko , informed the delegation about the different building typologies, i.e. semi-detached houses, low-cost income houses and walk-ups. The standalone houses were 40 m² in size. The walk-ups were 48 m² to allow for staircases. The beneficiaries were reallocated from Duncan Village to the new development. The project management team was appointed to oversee the re-allocation and ensure that it was conducted in a fair manner. The houses were based on a subsidy quantum. A technical committee consulted community members with regard to progress made. The Duncan Village project was integrated with the social housing development.

The delegation emphasised that the completed houses should be allocated to the beneficiaries for occupancy by 15 December 2011 as well as the other 44 units completed on the other site.

4.5 Site visit to Own Haven rental housing project

Mr Rayi led the delegation on a visit of the rental housing project. The project had 249 units which were fully occupied. The project was located in close proximity to amenities such as schools, shops, a swimming pool, a church, a library and public transport, etc as stipulated in the Breaking New Ground (BNG). The units accommodated people in the R1 500 to R7 500income band and offered tenants an option of bachelor units, single units and two-bedroom units. The rent ranged from R750 to R2 200. Funding for the project was in three forms, namely national finance through the Social Housing Regulatory Authority, provincial institutional subsidy and loan finance.

Some tenants complained about the state of their units, particularly on the poor-quality finishing. When it rained, water leaked through the roofs of 5th and 8 th -floor units, and as a result these units were damp. The matter was communicated to the Client Services Manager of the Own Heaven rental housing project, Ms T Yawa , who accompanied the delegation. The Manager claimed that she was not aware of the problem. It was agreed that the Manager would attend to the problem.

4.6 Site visit to Sweet Waters

The Regional Director led the delegation on a visit to Sweet Waters. The project was launched in 2002 with 600 youths who were awarded a total of 120 units to build as part of phase one of the project. However, the youth failed to meet the target and the units were poorly built. Those units had since been assessed for rectification.

Ntabeni Construction Company was subsequently awarded a contract to continue with the project. However, the contract was terminated due to inferior workmanship and because the company had used corrugated iron. MMS Building Company was awarded the contract and constructed 410 units each measuring 40 m² (two- bedroomed house) with a tiled roof. Each house had running water, a toilet, a shower and a basin. However, the other part of the settlement was still without water supply or connection. This problem was attributed to the theft of water pipes. During the time of the oversight visit, the project had stalled.

During interaction with the residents, the following concerns and complaints were raised:

· Lack of electricity which compelled residents to make use of paraffin;

· High crime rate, especially at night;

· When it rained, the roofs of some of the houses leaked and the houses remained damp.

· Sixty five houses had structural defects and required rectification.

The delegation enquired whether it was possible for the municipality to recoup the money from the contractors that were responsible for inferior workmanship. The delegation also suggested that different designs should be used in the construction of houses and that a lighting mast should be installed as an interim measure until such time that all houses in the area were supplied with electricity.

4.7 Site visit to Manyanani – alternative technology

The Regional Director led the delegation on a visit to Manyanani which used to be an informal settlement. Eight hundred beneficiaries were approved and were relocated whilst their houses were being built. During the time of the visit, only one house had been built. The purpose of building the house was to showcase an alternative technology to the beneficiaries. The informal settlement had some political challenges and the project team was working with the community to try and resolve the challenges. A project steering committee had also been established.

4.8 Meeting with the Nelson Mandela Bay Municipality (NMBM) (30 November 2011)

The delegation was welcomed by the Chairperson of the Standing Committee on Human Settlements in the municipality, Councillor Desi , who tendered an apology on behalf of the Executive Mayor, Councillor Z Wayile . The municipality had relocated residents to safer areas (relocation sites/transit areas). It had also taken drastic measures to ensure that there was no re-occupation of vacant land. The municipality had an anti-land invasion unit that patrolled vacated sites to ensure that the land was not re-occupied. The strategy against land invasion was also assisted by the involvement of stakeholders in relation to relocation and good working relationship with the local police and other law enforcement agencies. The municipality was, however, of the view that the legislation governing eviction from land occupied illegally needed to be reviewed because it was difficult to move people from land without an order of the High Court.

On the issue of emergency housing, it was reported that this was the competency of the province. However, there were discussions to devolve this function to the municipality but the process had since stalled. The municipality was also of the view that transit camps were not necessarily a solution as they often lead to the creation of slums. It supported the relocation people to serviced sites.

The delegation expressed appreciation for this as it was an indication that the municipality was committed to implementing its by-laws to prevent reinvasion of municipal land. The delegation was, however, of the view that the following issues needed urgent attention:

· Land release, land acquisition and the relationship with the Housing Development Agency;

· Affordable rental housing should be prioritised to meet the city’s housing demand;

· Awareness programmes on the Policy on Mortgage Default Insurance (MDI) should be conducted;

· Funding – the delegation was of the view that the municipality had to develop an efficient and effective strategy to collect revenue to complement the Urban Settlements Development Grant (USDG);

· Failure by the municipality to account for R502 million allocated for the USDG was of critical concern;

· Utilisation of the USDG for other purposes such as the building of community halls, etc was unacceptable;

· Concerted effort and a holistic approach in dealing with rural-urban migration should be applied;

· Credible data – the municipality should use local universities to assist with research work;

· Requisite management and administrative skills were required as this had a bearing on the accreditation of the municipality;

· The vacancy rate was unacceptable and needed to be prioritised;

· There was a need for collaboration between the province and the municipality in the provision of temporary relocation units ( TRUs );

· Initiative to arrest ever escalating building costs;

· Co-ordinated efforts were required to mitigate the effects of disasters;

· Strengthening of intergovernmental relations with the provincial and national. Planning was crucial for cost effective and efficient use of resources;

· Better management of the beneficiary list;

· The fact that the municipality had a seven-year settlement plan yet it had no reliable or credible data was of concern;

· Cost of rectification;

· Lack of capacity; and

· Rural sanitation particularly for the farm-worker communities.

4.8.1 Observations

During the visit, the delegation observed that there was a lack of appropriate understanding and common interpretation of the purpose of the Urban Settlements Development Grant (USDG). This was observed during interaction with municipalities that had benefited from the USDG, in particular the Nelson Mandela Bay Municipality .

At the conclusion of meetings and site visits, the delegation requested the provincial and national Department of Human Settlements and the Nelson Mandela Bay Municipality to present a detailed report on the implementation of the USDG as the municipality only accounted for R95 million and the financial managers did not avail themselves before the delegation. The meeting was scheduled for 8 December 2011 in Parliament on the following issues:

· Implementation of the Urban Settlements Development Grant;

· R502 million budget vote expenditure;

· Quarterly Expenditure and Performance Report on the budget allocation (with monthly cash-flows);

· Intergovernmental Relations Protocol with respect to the implementation of the USDG;

· Grogro informal settlement and land ownership;

· Municipal Land Audit Report;

· Profile of the Nceba Faku Village in relation to service delivery; and

· Report on Record of Decision and challenges hindering the construction of houses for the residents of Fitch’s Corner.

4.9 Site visit to St Albans

The Chairperson of the Standing Committee on Human Settlements in the municipality, Councillor Desi , led the delegation on a visit to a vacant site in St Albans located opposite St Albans Correctional Services. The site was purchased by Thubelisha and was set aside for the construction of 330 houses for people residing in Fitch’s Corner informal settlements. It was later discovered that it was not suitable for human settlement development as it had water ponds. The municipality decided to sell the land to acquire money to purchase suitable land for the residents of Fitch’s Corner, which were few kilometres from the settlement.

4.10 Site visit to Kyra rectification project

Councillor Desi informed the delegation that the assessment for rectification in Kyra was completed and that the audit report had been submitted to the municipality. Roster Constructors who had been assigned to do the work was going to commence with the construction soon after the completion of the procurement processes.

4.11 Site visit to NU 29

The delegation was led by officials from the municipality to a newly-constructed site. The area used to be an informal settlement but the people had been relocated. The project was an in-situ upgrading programme. There were 1 200 sites to be serviced and two contractors were appointed to implement the project. The houses would be 40m 2 in size and would be built where people were residing. If a person wanted a house of more than 40m², they would have to pay more money upfront.

The area had no amenities such as schools and recreational facilities. Children attended school in neighbouring settlements. Scholar transport was provided. The municipality indicated that there was a proposal in place to increase the number of classes that were available in order to accommodate more pupils.

The delegation viewed a two-bedroom house with a bathroom and a toilet. The delegation was impressed with the structure of the house but expressed a concern that the bathroom had no washing basin. The delegation recommended that houses that were still under construction should be fitted with a basin. The delegation also recommended that trees should be planted on every stand where human settlement development had taken place for climate change adaptation and mitigation compliance.

4.12 Site visit to Malaba Extension 6

The delegation was accompanied by municipal officials and a ward councillor to the sites. The municipal official reported that the project was an informal settlement upgrade. It was established about five to ten years ago. It had 106 households. Development would take place in phases. People would be moved, construction would take place and the people would be brought back after the houses have been completed. The in-situ upgrading in phase 2 was awaiting the environmental impact assessment. There was no proper sanitation and residents were excavating pits as toilets. The municipality had provided bucket toilets as a temporary measure and weekly refuse collection. Surprisingly when the delegation interacted with residents, they complained by saying that they sometimes used plastic bags to relieve themselves and then threw the bags on a nearby field. The delegation was dismayed by this practice and urged the municipality to provide proper and dignified sanitation to the community. The project manager, who also accompanied the delegation, indicated that bucket toilets were used as a temporary measure because ventilated improved pit (VIP) toilets required more funding, which was still a challenge.

When interacting with the community, the delegation discovered that the community had been living in Malaba Extension 6 for a period of approximately 18 years and there was still no tangible development. There was also no refuse collection.

The delegation recommended that the municipality should provide the community with ablution facilities. It further recommended that the municipality should provide feedback to the community by January 2012 on the plans and programmes that it would put in place to address the issues of sanitation.

4.13 Site visit to Grogro

The delegation visited Grogro informal settlement and engaged with members of the community. The delegation learned that land where the community resided was privately owned. The previous owner had reportedly donated the land to the community but there was no proper documentation to confirm this. The municipality was requested to provide a comprehensive report about the land issue because it was also discovered that some residents had been residing in the area for more than five decades. They started living there as farm workers.

Members of the community reported various challenges to the delegation, such as there being only one communal tap serving the whole community and that sometimes water supply would be sporadically cut off.

4.14 Briefing by the Councillor from NMBM

The municipal official informed the delegation that the owner of the land (Mr Van Rooyen ) gave permission to the municipality before 1994 to accommodate about 30 families. The settlement had since grown and it was accommodating more than 300 families. The Deputy Mayor had given an undertaking that the land was going to be released and that houses would be provided to the community. The delegation recommended that the Housing Development Agency (HDA) should be brought in to assist with the negotiations and subsequently the release of that land.

4.15 Site visit to Chetty informal settlement

The delegation was informed that there are 600 incomplete houses that were due for rectification in the next financial year, 2012/13.

4.16 Site visit to Dispatch

The delegation visited the area and it was informed that the houses were due for rectification. Most of the houses were not constructed in a proper way, such as, no lentils, cracks on the walls and water leakages during rainy days. Furthermore, it was observed that the houses had no sanitation. The delegatioin also abserved that sewer pipes were not connected. The municipal official informed the delegation that those houses will be part of rectification programme that will be conducted in the next financial year 2012/13

4.17 Site visit to Missionvalle

The delegation was informed that the area was due for the upgrading. The delegation requested the municipality to report progress on the project on quaterly basis.

4.18 Meeting with Makana Municipality in Amathole District

The delegation was welcomed by the Executive Mayor who made a presentation to the delegation on the status of the municipality. In the 2010/11 financial year the Auditor-General expressed a disclaimer audit opinion on the municipality. Thereafter, the Chief Financial Officer was suspended. The Executive Mayor of Makana informed the delegation that the municipality had experienced service delivery protests. To address some of the issues that were raised by the community, the municipality developed a strategic plan called the Mayoral Imbizo which provided a platform for the community to raise issues that affected them.

The Municipal Manager informed the delegation that the eradication of the bucket system was 80% complete in formalised areas, except areas such as KwaNdancama and Eluxolweni Settlement. These areas had 33 and 69 houses respectively. In all the informal settlements the bucket system was still used by 207 households. Two senior officials who were responsible for water and sanitation were given a task to compile a comprehensive report on the challenges faced by the communities.

The Executive Mayor further reported that the eradication of the bucket system and the provision of bulk infrastructure was still a challenge. An amount of R2.6 million was allocated for the eradication of the bucket system. The Executive Mayor told the delegation that for the past three years (2009 – 2011), the municipality had not received a clean audit report from the Auditor-General. The municipality received support from the Department of Cooperative Governance and Traditional Affairs (COGTA) as well as from National Treasury. The delegation was further told that the Municipal Infrastructure Grant (R25 million) was not sufficient to address the service delivery backlog in the Makana Municipality . The municipality required at least R75 million to address the backlog. The Municipal Manager reported that an amount of R50 million was requested from the Development Bank of Southern Africa for the provision of bulk infrastructure. The municipality also faced challenges around the lack of human resource capacity.

The leader of the delegation expressed her appreciation for the presence of Councillors as public representatives and indicated that they were critical in driving and monitoring service delivery programmes. She pointed out that it is the responsibility of Parliament to oversee the quality and impact of services rendered to the citizens She indicated that in the State of the Nation Address, President Zuma pronounced on the eradication of informal settlements and the provision of proper sanitation as priority areas. She recommended that the issue of the mortgage default insurance policy should be taken seriously as it aimed to address the gap market in the delivery of housing.

4.18.1 Deliberations

The delegation raised a concern that there were no timeframes for the completion of the environmental impact assessments ( EIAs ) and that this might hamper the completion of projects. The delegation further advised the municipality to make contact with the CSIR who could assist with the provision of sanitation and the fixing of road potholes. The delegation recommended that in 2012/2013 financial year, the municipality should address issues that resulted in it receiving a disclaimer from the Auditor-General.

The delegation also expressed a concern over the high vacancy rate even though it was reported that the municipality faced capacity challenges. It urged the municipality to make use of the services from the Development Bank of Southern Africa to address its capacity challenges and improve service delivery.

The delegation enquired how much land the municipality had for human settlement development. It also enquired about the revenue that the municipality had collected.

4.18.2 Responses

The terrain made it difficult for the municipality to provide toilets. The area is mountainous and experienced heavy rainfall, which caused flooding of the excavated pits. This delayed progress. There was also a challenge of land that belonged to the church. Negotiations between the council and the church were taking a long time to be concluded. The municipality indicated that there were certain corrupt municipal employees who were taking bribes from people to drain their pit latrines. The municipality was addressing this. The finalisation of EIAs took a long time to complete and this hampered the approval and progress of MIG projects.

The municipality had not been reaching its targets for capacity development and was in the process of revising its organogram in accordance with its needs. The focus would be on the decentralisation of supply chain management as there was an amount of R65 million that could not be accounted for. On current projects, the there was a huge project of about 2 263 units that was running and rental stock was part of this project.

The municipality was experiencing challenges around the rectification of projects. It had submitted a plan to the national Department of Human Settlements on the needs of the municipality. The Eluxoweni settlement, which is a transit camp, was having a challenge with water connection and the sewer system. There was also a challenge with TRUs . The service provider submitted a plan to the district for development to commence. The municipality faced a challenge around the issue of land audit. It was reported that the municipality revenue collection rate was up to 70%.

The municipality undertook to furnish the Committee with the reports containing information about the vacancy rate and plans to address it. On the issue of disaster management, the municipality stated that this was the competency of the district and an amount of R10 million had been set aside for this purpose. The municipality was still awaiting the service level agreement from the district.

On the issue of backlog, the Director for Infrastructure indicated that the municipality had a backlog of 12 000 units. There was also a challenge regarding poorly constructed houses but a submission was made to the national department about the issue. Constructed houses were registered with the NHBRC and were inspected. A policy on sanitation was the competency of the Department of Water Affairs and the Environmental and the implementation resided with the Department of Human Settlements, while the MIG was implemented by the municipalities. He urged that Parliament to address this as it was posing a challenge when it came to developments.

Councillor Gaga explained that the Makana Municipality was declared a road disaster municipality and an amount of R4 million was allocated for rectification, but this amount was not enough as the challenge was huge. Under spending was singled out as a serious challenge but the council was addressing it. The Councillor pleaded for help from Parliament for the construction of road infrastructure and rectification. All of these needed a budget of R11.6 million. The income for the municipality was R296 million in the 2011/12 financial year.

In closing, the Mayor of Makana stated that there had been slow progress in addressing the effects of disasters in the area, particularly the ones that took place between 2006 and 2008. He urged the provincial department to speed up the rectification of Extension 9 ( Vukani ). He reported that the municipality had 69 vacant posts and 581 permanent staff members. The contracts for senior employees (Municipal Manager, Finance, and Corporate Services), which are deemed section 57 employment contracts, were going to expire on 31 October 2013.

4.18.3 Recommendations

· The delegation recommended that there should be a policy alignment on sanitation between COGTA, the Department of Water and Envoronmental Affairs and the Department of Human Settlements.

· The Department of Human Settlements should be leading the coordination and planning of sanitation service delivery issues and resource mobilisation.

4.19 Site visit to Peddie

The Mayor tendered an apology to the delegation on behalf of the municipal officials who attended a council meeting.

The Regional Director, Mr Nojoko , informed the delegation that 322 houses had been completed and were within an agreed standard by the department. The province had targeted to complete 710 units by March 2012. A total of 100 beneficiaries had already taken occupation of some of the houses which were registered with the NHBRC.

It took a bit longer to kick-start the project due to some technical challenges that were experienced at the time. It proved difficult to locate beneficiaries as some of them had changed their addresses and had since relocated.

The delegation raised a concern about the missing beneficiaries and recommended that the province should ensure that it updated the beneficiary list, traced the missing ones and established which ones were deceased. Those who had relocated to places such as Cape Town should be contacted to determine their economic status because they might have found work but have left their families in rural areas. Such individuals might need to be provided with housing in their areas of origin.

There were pieces of land that fell under traditional leadership which posed a challenge when such land parcels hade to be released for human settlement development. The demand for housing was high among the middle and high-income groups.

The delegation indicated that the issue of electricity could be mitigated by providing solar energy panels. Households should also be provided with water services. On the issue of rental stock, the Social Housing Regulatory Authority should be brought in to assist the municipality because it could provide a temporal solution for people who were in the middle income bands. The delegation however, expressed its satisfaction with the quality of houses that were built.

4.20 Meeting with Inxuba Yethemba Municipality - Chris Hani Municipality

The delegation was welcomed by the Executive Mayor, Ms N Goniwe . The delegation was informed that the rectification work that was in progress at the time would only be completed in 2015. The delegation was concern on the way the rectification programme was handled and even on the timeframes (to long). The delegation expressed its dismay at the slow pace at which work was being carried out by the municipality.

The delegation provided a brief outline of the purpose of the oversight visit. In undertaking the oversight visit, the delegation was interested in seeing how government programmes were being implemented to improve the living conditions of communities. The delegation was interested in receiving a progress report on the following critical areas:

· Community involvement and participation in development;

· Accreditation of municipalities – in this regard the delegation expressed concern that accreditation was being done simply for compliance purposes whereas capacity ought to be one of the main considerations for accreditation;

· Integrated planning for the development of sustainable and integrated human settlements;

· Intergovernmental collaboration and improved intergovernmental relations;

· Creative designs of housing construction both in urban and rural settings;

· Implementation of the People’s Housing Process as well as the encouragement of the development of housing co-operatives.

It was reported that the “ Middelburg crisis” needed to be prioritised because it had a backlog of 6 000 units. The Middelburg area consisted of five townships, two of which were Lusaka and Rosmead . The housing project in Middelburg was approved in 2008 but at the time of the visit no top structure had been built. As a result of inferior workmanship, houses were on the verge of collapsing.

The delegation was concerned that since 2009 no rectification of houses had taken place in the area. The Municipality explained that budget constraints had hampered efforts to improve the situation. The delegation did not accept this explanation and requested the provincial Head of Department to provide it with a report on the state of houses in the area (Chris Hani municipality). The Municipal Manager explained that the municipality faced a challenge of the provincial department changing specifications for the roof structure with the contractor and that had consequently resulted in inferior workmanship.

The municipality also raised concerns with regard to the inaccessibility of the provincial Department of Human Settlements. There was limited interaction between the municipality and the provincial department. The delegation was requested to assist in improving the interaction between the two bodies.

Even though the delegation acknowledged the challenge of a lack of funding reported by the district municipality, it was of the view that the municipality should prioritise projects, earmarked for development with the budget available in order to prevent the possibility of running into a risk of blockages which may results in blocked projects. The Municipality was also advised to be creative and use its own initiative to solicit funding from external sources.

The delegation expressed dissatisfaction in the manner the bulk infrastructure was done as it was not immediately followed by putting up the top structure. It was advised that cooperation with other departments in the development of infrastructure was important. The municipality needed to explore new ideas, research and creative thinking in the construction of houses and human settlements. In this regard, the municipality was advised to make use of nearby academic institutions to undertake research work.

4.21 Site visit to Hill Side in Ward 6 (rectification)

The project started in 2002 with 1 000 sites. Most of the houses required rectification. The houses had two bedrooms, open plan lounge and kitchen with no sink. Most of the houses had cracks. The houses did not have a bathroom, a shower or a washing basin. When the wind blew, sand would find its way into the houses through unproperly fixed corrugated iron roofing. Windows were cracking and doors were not closing properly.

The municipality indicated that the assessment for rectification had been done and that the final report would be submitted to the provincial Department of Human Settlements on 15 December 2011.

4.22 Atlanta in Ward 1 and Ward 3

Houses in both wards were on the brink of collapsing. An assessment had been completed. Most of the houses need to be demolished.

4.23 Middleburg Cape - Lusaka 595

During the visit to Lusaka Townvship , the delegation observed that a number of houses had bricks and stones placed on their roofs in an effort to prevent the roofs from being blown off by wind. The delegation felt that this was unacceptable and requested the provincial Head of Department to furnish it with a report on the state of houses in the area.

Lusaka was an old township and required revitalisation. An application for revitalisation had been made to the provincial Department of Human Settlements. Out of the number of applications submitted, only 80 units were approved because the conditions of the houses were undisputed. There were 130 outstanding units that were awaiting approval and the families were accommodated in temporary structures.

The temporary structures cost approximately R48 000 per structure. The municipality requested the delegation to assist it in trying to divert the money allocated for the construction of temporary structures to renovate the existing structures. The houses that were built on Mandela Day were in good condition and were quicker to renovate. Despite the request, the municipality was still of the view that temporary structures were necessary to accommodate families in distress due to their houses collapsing.

4.24 Site visit to Rosmead

Rosmead residents were residing on land owned by Transnet. Therefore the township establishment could not take place until the land had been transferred to the municipality by Transnet. Negotiations between Transnet, the provincial Department of Human Settlements and the Department of Cooperative Governance and Traditional Affairs over the possible transfer of the property to the municipality were underway. Delays in the negotiations to transfer the land hindered efforts aimed at providing services to the residents. The delegation suggested that the Housing Development Agency should also be approached to assist in the urgent release and transfer of the land.

4.25 Meeting with Nkwankca Municipality

The delegation was welcomed by the Executive Mayor, Mr Qhamagwana . He informed the delegation that the housing project in Molteno which falls under the Nkwankca Municipality had been completed even though a number of houses required rectification due to inferior workmanship. At the time of the visit, there was one project underway with completed bulk infrastructure and no top structure. The delegation was further informed that the anticipated time for the start of the construction work on the top structure was January 2012. The delegation was informed that contractors were compelling beneficiaries to sign ‘happy letters’ of satisfaction even though houses had defects. This contributed to inferior workmanship as houses were handed over to beneficiaries before completion. The Executive Mayor informed the delegation that beneficiaries were leasing or renting out their government-subsidised houses to shopkeepers, which was a practice over which the municipality did not have any power to curb or control.

4.26 Site visit to Molteno

The Mayor reported that an assessment of 1 200 houses in Sterkstroom and 907 houses in Molteno was done in 2009 by the NHBRC. The new project experienced challenges with bulk services (roads, sewers and water). The approved budget for the installation of bulk infrastructure in 2008/09 was insufficient.

The approved 2010/11 budget for the top structure was delayed due to the procurement processes. The municipality requested the MEC to intervene on the issue of delivery by the local contractors.

4.27 Meeting with the Chris Hani District Municipality

The delegation was welcomed by a councillor from the municipality, Mrs L Gunuza-Nkwentsha . All municipalities were represented by councillors and officials. The municipality faced challenges of infrastructure backlogs and insufficient funding for developmental programmes. In terms of the Local Economic Development (LED) plan, the area of Lukhanji (Queenstown) had been earmarked to be the hub of economic development. The municipality was of the view that the People’s Housing Process (PHP) could assist a great deal in local job creation. Rural housing was aligned with the traditional ways of housing construction to ensure that rural communities retain their traditional rural setting instead of being converted into townships.

The water challenge in the district coincided with winter when the water supply fell below 25%. Continued reliance on boreholes was not sustainable and the long-term solution for the district municipality was the provision of bulk infrastructure on a much broader scale. There was a budget requirement of R3.189 billion which excluded projects that were implemented and new projects to be registered for funding. The water backlog in households not serviced stood at 66 441 (35%) househplds and the sanitation backlog was at 104 009 households (55%). To eradicate the backlog the municipality needed a budget of R688 million. People in rural areas required jojo tanks as well as vegetable gardens. The municipality was of the view that the funding for water projects would not help the municipality meet government’s target of eradicating both the water and sanitation backlogs by 2014.

In regard to housing, the following challenges were highlighted:

· Insufficient grant funding to accommodate housing plans, programmes and timeframes;

· Existing projects amounting to an estimated R700 million to fund housing which was said to consume 2,5 years of MIG funding;

· Existing bulk services were inadequate to meet increasing demand and development;

· Time for project application, funding and registration could take between 6 to 9 months;

· Design, procurement and award could take a further 8 months; and

· Interdependency of projects to provide bulk services.

The municipality recommended the following:

· Lobbying to increase the funding allocation to address backlogs and the provision of services within what it termed ‘acceptable’ timeframes to both the Chris Hani Municipality and communities were critical.

· Housing development undertaken by the Department of Human Settlements should include funding for both new bulk services and the upgrading of existing bulk services.

· There was a need for more interactive processes and linkages between the provincial Department of Human Settlements and the Chris Hani District Municipality .

The presentation by the provincial Department of Human Settlements was rejected as the presentation demonstrated inconsistency with the information which was distributed to the delegation. Furthermore, the councillors that were present also confirmed that whenever the province came to their municipalities the information presented would be insufficient for municipalities to take it into their constituences . The province was advised to prepare clear plans and to invite the district and local municipality to be part of planning.

4.28 Site visit to Zola Township in Tarkastad

The delegation observed that houses in the area had been poorly constructed. The settlement lacked adequate sanitation facilities and the bucket system was in use.

The delegation requested the Chris Hani District and the Tsolwane local Municipalities to brief the Committee in Parliament on their plans, programmes and progress made. The date of a follow-up meeting was still to be communitated to the municipalities. The delegation immediately contacted the Head of Department to urgently intervene and he committed himself to visit the area the following Tuesday and the progress report was to be submitted to the Committee.

4.29 Meeting at OR Tambo District Municipality (2 December 2011)

The delegation was welcomed by the Councillor responsible for policy research and community liaison, Mr W Ngosi . Mr Ngosi tendered an apology for the Executive Mayor and Member of Mayoral Committee, Councillor Socikwa . Councillors from various municipalities were also in attendance. The municipality faced challenges of availability of funds to address the huge housing backlog.

The district had a total of 269 840 people living in inadequate housing. The district’s allocation of funds did not correspond with the housing needs. King Sabatha Dalindyebo (KSD) Municipality had a backlog of 17 000 units together with a lack of bulk infrastructure. The delegation was further told that the gap housing market was not in the plans of the district municipality and that the availability of land hindered the progress on service delivery.

In Mhlontlo Municipality 928 units had been completed and 1 000 units in Nyandeni and 1 300 units in King Sabatha Dalindyebo were still under construction. In KSD 4 597 units fell under the rectification programme. There was a challenge of capacity in most of the local municipalities. Accessibility to the project was also identified as a hindrance due to the poor condition of the roads.

Challenges hindering the acceleration of service delivery especially in housing delivery were as follows:

· The terrain in certain areas;

· Access to some sites was difficult due to the inaccessible internal roads;

· Land claims that took too long to be resolved;

· Lack of internal services and bulk infrastructure;

· Roads and storm water drainage were never constructed due to a lack of funds;

· Sewer reticulation was faulty and bulk sewer reticulation needed refurbishment;

· Malfunctioning sewer posed a huge health and environmental risk;

· Lack of contractors with necessary capacity to deliver housing projects; and

· Lack of material suppliers within the OR Tambo region.

The delegation was of the view that the following issues needed to receive urgent attention by the district:

· Elderly, destitute and vulnerable people needed to be included in housing allocation.

· Planning should be aligned with funding and geotechnical testing should be done within the current financial year.

· The district municipality should assist the municipalities in capacitating their employees.

Due to heavy rainfall in the region, the delegation was unable to undertake further site visits and the planned visit to the OR Tambo District Municipality could not materialise. Therefore the delegation committed itself to visit the district another time as councillors expressed their willingness to have the delegation visit their areas.

4.29.1 Observations

The delegation observed the following:

· Even though the provincial Department of Human Settlements had informed the delegation that the recommendations by the Committee based on its previous visit in 2009 were considered and implemented, it was not the case on the ground. Most of the projects were still without proper or adequate sanitation. In the Nelson Mandela Bay Municipality communities were still using the bucket system. Rural sanitation was not prioritised, thus resulting in huge backlogs. The provision of VIP toilets was not sustainable. There was a need for a common definition of the bucket system.

· The provincial department took long to allocate emergency housing to disaster victims, which resulted in communities residing in tents for many years.

· The province lacked a strategy on how to approach job creation.

· There was no policy on the management of backyard dwellers.

· The lack in the monitoring of projects resulted in poorly constructed houses and required that those houses be rectified.

· The lack of electricity compelled residents to use paraffin which could result in health hazards and also the lack of electricity create opportunities for crime.

4.29.2 Conclusions

The delegation, having received briefings and having conducted site visits in the Eastern Cape province , made the following conclusions:

The national Department of Human Settlements and the provincial Department of Human Settlements, the Nelson Mandela Bay Municipality should come to Parliament to brief the Committee on the following:

· Challenges in the implementation of the Urban Settlement Development Grant;

· Account on the R502 million budget allocation for the Urban Settlement Development Grant;

· Quarterly expenditure and performance report with monthly cash-flow from inception to date on the allocated budget;

· Signed Intergovernmental Relations Protocol on the implementation of the Urban Settlement Development Grant;

· A detailed report on the Record of Decision and challenges hindering Fitch’s Corner informal settlement;

· Grogro informal settlement and land ownership;

· Municipal Land Audit Report;

· Profile of the Nceba Faku Village in relation to services; and

· Clarity on land audit and land issues in the province by the Housing Development Agency.

5. First meeting with the Eastern Cape provincial Department of Human Settlements and Nelson Mandela Bay Municipality (NMBM)

The Committee met with the national Department of Human Settlements, Eastern Cape Department of Human Settlements and the Nelson Mandela Bay Municipality (NMBM) on 8 December 2011. The latter was responding to the invitation by the Committee.

Ms BN Dambuza, Chairperson: of the Portfolio Committee on Human Settlements and leader of the delegation explained the reasons for the briefing and indicated that the NMBM was requested to respond to a number of issues including the implementation of Urban Settlement Development Grant (USDG) and to account for the R502 million budget that was allocated for the USDG, to give a briefing on Fitch’s Corner and Grogro informal settlements and to provide clarity on land issues.

She indicated that the Committee had visited NMBM in 2009. During that oversight visit the Committee visited Fitch’s Corner informal settlement and witnessed the appalling conditions under which the residents were living on a daily basis. The report received from the NMBM indicated that the land where Fitch’s Corner was situated was bought by the national Department of Human Settlements from Thubelisha for the benefit of the residents of Fitch’s Corner. The Record of Decision that was received from the Department of Environmental Affairs clearly specified that the land was able to be developed but required proper infrastructure development.

However, the report received by the Committee during the recent oversight visit contradicted the previous one. It indicated that the land failed the environmental impact assessment because of water ponds. The NMBM had informed the Committee that the residents would be relocated to the nearest site which was earmarked by the NMBM. The Committee also visited Grogro informal settlement where people had settled on private land. The delegation was informed by the residents and the councillor that the owner (known as Mr Van Rooyen ) had offered to sell the land for housing development. The Committee had then requested the Housing Development Agency to assist in finding the owner of the land and report progress to the Committee.

The provincial department was led by the Mr G Sharpley , Head of Department and Mr K Naicker , Acting Executive Director: Human Settlements, NMBM led the presentation. Mr Naicker informed the Committee that the USDG was intended to cover capital projects, including land planning, the provision of water and sanitation, and the provision of adequate housing, electricity, roads and storm water services. The USDG was meant for the acquisition or redevelopment of land, basic infrastructure services for poor households and the upgrading of informal settlements. The total allocation for 2011/12 was R502 million. Out of that amount R247 million was committed for projects based on the Municipal Infrastructure Grant (MIG) and the MIG-cities framework. The NMBM had spent R97 million of the R502 million for the USDG in the period 1 July to 30 November 2011. The NMBM as part of its action plan was fast-tracking the appointment of contractors as well as the approval of the EIA.

The NMBM informed the Committee that the Grogro informal settlement was located on the privately-owned land since 1965. The residents had been residing in the area for years without any basic services because the NMBM’s policy was to not provide services on private land. There were initially 30 households but the number increased to 300 households. The process of acquiring the land had started and a final report would be submitted to the Council in early 2012. The Housing Development Agency had been involved as part of its mandate to acquire land on behalf of the municipalities.

With regard to the Fitch’s Corner informal settlement, approximately 80 residents were residing in a cemetery since 1987. The residents were going to be relocated to a nearby area.

The national and provincial departments reported on the non-cooperation by the officials of the NMBM in respect of the implementation of and accountability for the USDG. During interactions the NMBM failed to respond satisfactorily to questions raised by the Committee. There were also contradictory reports between the three spheres of government, which resulted in the proposal to adjourn and reschedule the meeting for proper reporting. The Committee further resolved that the three spheres of government should collaborate and compile a consolidated report to be tabled before it. It was recommended that the accounting officials as well as the executive authorities of the NMBMM and the province should be invited to and participates in the next meeting rescheduled for 25 February 2012.

6. Second meeting with the Eastern Cape Department of Human Settlements and Nelson Mandela Bay Municipality (NMBM)

On 25 February 2012, both the national and the provincial Departments of Human Settlements attended the meeting. The national department was led by Mr N Chainee , the provincial department was led by the MEC for Human Settlements and Safety, Ms August- Sauls , the NMBM was led by the Deputy Mayor, the Acting Municipal Manager, Mr Hani , Chairperson of the Standing Committee Human Settlements, Cllr F Desi , Chief of Operations, and Mr K Naicker , Chief Financial Officer.

Following on the presentations and after extensive deliberation, the Committee resolved that the NMBM should:

1. Provide the Committee with full details of the consultants who provided the second Record of Decision on the Fitch’s Corner EIA.

2. Provide the readiness of sites for development and installation of infrastructure with detailed life span or timeframes of each project. The progress report should be presented in July 2012.

3. Ensure that the bucket system was eradicated in all informal settlements and it should implement innovative sanitation solutions.

4. Prioritise the re-allocation of families at the New Brighton dumping site (tip) as they were exposed to health hazards.

5. Consider implementing high-rise buildings due to the shortage of suitable land for housing delivery.

6. Provide information on the upgrading of hostels and Community Residential Units ( CRUs ).

7. Report on the unemployment rate and measures in place to address that challenge.

8. Consider approaching the Department of Public Works through the Extended Public Works Programme and the Department of Transport through the Sihambasonke fund when it needed to build access roads in new projects.

The Committee emphasised the importance of improved collaboration between the NMBM and the province in the planning process for cost-effective and efficient resource utilisation and alignment of plans.

7. Recommendations

Based on the observations made, the Committee requests the Minister of Human Settlements to consider the following towards the attainment of Outcome 8 fundamentals. The Minister is further requested to ensure that a progress report is received by the Committee by the end of October 2012.

7.1 Ensure that access to basic services, in particular water, electricity and universal access to adequate sanitation

· Fast-track the eradication of the bucket system in all informal settlements, including Nelson Mandela Bay ( Malaba Ext 6, the communities have been there for approximately 18 years), Amatole District ( Bedford and Adelaide ) and in Chris Hani District (Zola and Tarkastad ), in Cacadu District ( KwaNdancama and Eluxolweni informal settlements).

· Provide a clear radical strategy, plans and funding mechanism to address the basic services challenge in the province. Budget expenditure for the first two quarters of 2012 financial year.

· Facilite of electricity installation by Eskom in Sweet Waters and in other areas where there are new completed projects to prevent crime, vandalism and illegal occupation hence the beneficiaries are reluctant to occupy houses without connections.

· Provide a list of areas that benefitted from rainwater tank roll-out programme, the quantity as well as the budget incurred.

The Committee strongly discourages the provision of Ventilated Improved Pit system as this system is costly to maintain especially by the poor and vulnerable. The system is not sustainable and the communities sometime leave these toilets and opt for open defecation and thus resulting to health hazard and environment degrading and waste full expenditure. Therefore the Committee recommends that the Minister should ensure that department should consider other options available in the institutions such as Council for Science and Industrial Research (CSIR).

7.2 Ensure the upgrading of informal settlements

Fast-track upgrading of informal settlements in the province by ensuring that department:

· Provide a clear strategy, plan and timeframes for the upgrading, formalization and specific areas earmarked for this programme and the budget expenditure for the first two quarters of 2012 financial year. Furthermore, the Committee request prioritisation of the upgrading of Fitch’s Corner informal settlement (communities have been there for more than ten years) and Malaba Ext 6 (communities have been there for the past eighteen years).

· Provide a progress report on the upgrading of Manyanani informal settlement.

· Prioritise the re-allocation of families in the New Brighton tip site as they were exposed in health hazard situation.

· Report progress on the upgrading of 14 informal settlements in the Buffalo City Municipality .

· Provide full progress report on the Ducats informal settlements

· Prioritise the re-allocation of families in New Brighton tip site as they were exposed in health hazard situation.

7.3 Ensure that affordable rental housing stock is provided

· Expand of rental housing stock to the Nelson Mandela Bay Municipality to address housing demand. A clear plan, with timeframes and budget should be submitted to the Committee by end of September 2012.

· Provide full detailed report on the Own Haven rental project status as the community reported that there were roof leakages.

· Conduct audit on social housing projects and report to the Committee if the norms and standards are adhered to in respective projects hence the rental rates are equal.

· Provide quarterly report of Amalinda Housing Co-operative starting from October 2011 until June 2012. Report should be forwarded to the Committee by September 2012.

· Provide information on the hostel upgrading and Community Residential Units especially in the Nelson Mandela Bay Municipality .

7.4 Land issues

· Provide political intervention on the Environmental Impact Assessment (EIA) in order to ensure that the EIA do not serve as hindrance of developments especially for the poor.

· Commission enquiry on the second Record of Decision (ROD) on the Fitch’s Corner, as the primary ROD gave permission for development and advised for infrastructure development prior delivery of top structure. Provide the details of the consultants that were involved on this matter.

· Progress report on the Orange Groove informal settlement development.

· Provide full details of the land that was purchased by Thubelisha for Fitch’s Corner development (confirmation of sale of the land parcel, when and to whom and what purpose).

· Detailed audit report on the municipal land in the Nelson Mandela Bay Municipality

· Intervene on the parastal land challenges as it was reported to be costly in the Buffalo City Municipality .

· Facilitate urgent release of Transnet own land to the Rosmead residents for proper human settlements development.

· Facilitate land release land for the communities of Grogro informal settlement as well as the tracking of the owner, Mr Van Rooyen .

· Promote awareness on high rise building-option for effective, efficient land use and improve densification, especially in the metropolitan municipalities.

7.5 Legislative and policy compliance

Non-compliance to Division of Revenue Act is a critical concern to the committee, especially utilisation of Urban Settlements Development Grant (USDG) for unintended purposes by metropolitan municipalities in the province:

· Facilitate the intergovernmental relations and cooperative governance for effective and efficient human settlements delivery.

· Review the Built Environment Performance Plan (BEPP) and develop a blue print on the utilisation of USDG.

· Provide a policy on the Management of Beneficiary List. Hence it is very crucial for the province and municipalities to finalise the beneficiary list prior project commencement to avoid delays in occupancy, electricity connection and prevent illegal occupants.

· Provide mechanism to curb illegal selling of the state subsidy houses.

· Provide detailed report on the confirmed commitments and budget allocation on the provision of amenities (social and economic) to attain a full scale integrated and sustainable human settlements on the current established developments especially in the Nelson Mandela Bay Municipality ( Zanemvula project) and in the Buffalo City Municipality (Sweet Water and Duncan Village)

· Provide detailed progress report on the rectification programme, budget expenditure for the first and second quarter as well as timeframes for completion. Rectification of projects in Inxuba Yethemba Municipality (Cradock and Lusaka )

· Report on the rectification request of Makana local municipality.

· Report progress on the rectification of Matatiele projects, Ducat and Zimbane Waterfall as this was set for 2012/13 financial year.

· Consider approaching Department of Public Works through Extended Public Works Programme and also Department of Transport through the Sihambasonke fund when it needs to build access roads in new projects

7.6 Disaster affected areas

· Provide detailed report on the expenditure of R56 million that was set aside to address disaster backlog. Provide list of project areas and timeframes.

7.7 Blocked projects

· Report on Inkwanca Municipality ( Sterkstroom and Molteno )

· Report progress on the unblocking of Sunday’s River projects where an amount of R21 million had been allocated for unblocking the project.

· Progress report on the remaining blocked project in Sweet Waters.

· Progress report on the unblocking of project in Ikhwezi and Malitswai local municipalities

7.8 Fighting fraud, crime and corruption

· Report progress on the utilisation of state subsidy houses in Janesville , Klipplaat and Dinsanadi

· Report progress on the Jansenville , Klipplaat and Dansandi projects where people were illegally occupying houses.

· Report progress on Cala and Elliot projects that were handed over to SIU for investigation. Alleged irregularities around project management and inappropriate utilisation of state subsidy houses.

Report to be considered.

Documents

No related documents