ATC130204: Report of the Portfolio Committee on Human Settlements on the Oversight visit to Lenasia, Gauteng, dated 27 November 2012

Human Settlements, Water and Sanitation

REPORT OF THE PORTFOLIO COMMITTEE ON HUMAN SETTLEMENTS ON THE OVERSIGHT VISIT TO LENASIA, GAUTENG, DATED 27 NOVEMBER 2012

REPORT OF THE PORTFOLIO COMMITTEE ON HUMAN SETTLEMENTS ON THE OVERSIGHT VISIT TO LENASIA, GAUTENG, DATED 27 NOVEMBER 2012

The Portfolio Committee on Human Settlements, having conducted an oversight visit to Gauteng on 19 November 2012 in relation to the demolition of houses in Lenasia , reports as follows:

1. Background
In terms of the Constitution of the Republic of South Africa of 1996 as well as Parliamentary Rules, the Portfolio Committee of Human Settlements (the Committee) has a responsibility to conduct oversight over any executive organ of State that falls within its portfolio. The Committee agreed to visit Gauteng province in order to receive a proper presentation from the provincial Department of Local Government and Housing on issues around the demolition of houses in Lenasia . The Committee had heard about the demolition of houses from the media and therefore had to receive first-hand information from the provincial department.

2. Objectives of the visit

The objectives of the oversight visit were as follows :
• Ascertain challenges or allegations that led to the demolition of houses.
• Receive facts from the parties that were affected or involved.
• Ascertain who authorised the alleged illegal sale of land and what mechanisms were in place to take care of the families who were affected by the demolition.
• It was also envisaged that the delegation would visit the site and interact with the families in order to understand their side of the story.

3. Delegation
3.1 Portfolio Committee on Human Settlements
The multi-party delegation consisted of Ms BN Dambuza (Chairperson of the Committee and leader of the delegation (ANC)); Mr JM Matshoba (ANC); Ms G Borman (ANC); Ms AC Mashishi (ANC); and Ms M Njobe (Cope).

The following parliamentary officials accompanied the delegation :
Ms K Pasiya (Committee Secretary); Mr M Nyatela (Committee Secretary) and Mr L Tsoai (Committee Researcher).

3.2 Members from the Gauteng Legislature
Mr E Magerman (Chairperson of the Portfolio Committee on Local Government and Housing - (ANC)); Ms C Sodlulashe-Motau , Ms P Masepe and Mr R Gudlhuza accompanied the delegation. The delegation was also accompanied by the following officials from the legislature: Mr T Kepedise (Researcher); Mr M Masilo ; Mr J Moteke ; Mr M Radibe and Mr S Mhlambi .

3.3 Departmental officials
The delegation was accompanied by Mr M Mnyani (Head of Department) and Ms F Koloko from the provincial Department of Local Government and Housing and Mr M Shabangu from the national Department of Human Settlements.

4. Presentation by Head of Department: Department of Local Government and Housing
The Head of Department, Mr M Mnyani , reported that all vacant land is vested within the provincial department and is managed in terms of the Gauteng Land Administration Act, No 11 of 1996, while any disposal of land is done through the Gauteng Land Disposal Policy of 2008. He also reported that part of the challenges with managing the land was the high rate of land invasions where people illegally occupied land and built temporary or permanent structures on it. Some invasions were averted while others were not as they occurred overnight and on weekends while inspectors were off duty.

The investigation into the illegal sale of land was conducted in Johannesburg South, that is Lenasia , Ennederdale and Lawley , as far back as 2006. In 2007, developers were arrested for the illegal sale of land in those areas. More complaints came forth and investigations were widened and an audit was conducted. It was found that properties of the provincial department were illegally sold or occupied and occupants of the land were constructing houses.
The provincial department started to demolish houses under construction. By the time of the audit, 678 stands were illegally occupied, and in Ennerdale and Lawley the estimated number of stands affected were 1 000.

4.1 Investigations and civil cases
In September 2010, two of the syndicates were arrested for the illegal sale of land in the aforementioned areas and the third suspect was arrested in June 2011. In April 2011, all complaints of the illegal sale of land were referred to the provincial Hawks and the Housing Task Team and 10 more cases of fraud were opened. One of the accused in the five cases that were on trial was an employee of the City of Johannesburg Municipality.

The illegal occupants secured an interim court order preventing the provincial department from demolishing their houses and the court also ordered that the illegal occupants should also stop construction. The department filed affidavits in court to request the eviction of the occupiers and the applicants (illegal occupiers) also filled counter applications. In March 2011, the court ordered that the matter be referred for mediation for the applicants to explain how they acquired the properties. The outcome of the mediation was that of the 168illegal occupants, only 11 applicants responded, and only three applicants were found to have applied and were on the demand database of the department. The department approached the court to seek a final order and the court ruled that the applicants (illegal occupants) whose names appeared in court papers were ordered to vacate the properties they were occupying. The applicants were ordered to remove or demolish their structures within 30 days, failing which the department had the right to remove or demolish those structures.

4.2 Internal controls by the provincial department
It was reported that parallel to the legal process taking its course, the provincial department put in place key internal controls to contain the land loss problem, particularly through the illegal sale of land. Other controls were exercised through the following:
• An Internal Provincial Land Task Team was established consisting of the Land Management Directorate, Legal Advisory Services, Planning, Anti-Fraud and Corruption Unit, and the Assets Disposal and Regularization Directorate (ADARDI).
• The provincial Portfolio Committee met to consider all matters relating to land in the province and brought together all units that played a role in this regard. Part of its urgent matters included the land matters in Johannesburg South.
• The Land Management Directorate had since put caveats in the various land parcels that were registered under the department to prevent the illegal sale of the land via the deeds office.
• Before the caveats are lifted or the property is transferred to the tenant of the department, the properties in question are verified by the Land Management Directorate and the Anti-Fraud and Corruption Unit before the Head of Department can sign them off.
• These controls have proved to be very useful and the occurrence of unauthorized land transfer or change of ownership at the deeds office has been noticeably absent since the controls were put in place.

4.3 Financial implications for the provincial department
The Head of Department reported that, on average, the provincial department spent between R2 000 to R8 000 per month per stand on rates and taxes and that these figures excluded the costs for the illegally connected services such as water and electricity that the municipality is also charging the department as the owners of the land. Effectively, the department has spent over R300 000 per annum on rates and taxes for the properties illegally occupied. Furthermore, the department pays an average of R100 000 per annum on services used as a result of the illegal services connection at the three areas in question, which cannot be budgeted for as it is not consumption of the Department. It should be noted that these financial figures are for Lenasia only and that, the figures change drastically for the province-wide situational analysis. By May 2012, the department had paid an amount of R197 148 ,14 in legal fees to contest the matter in court. More costs have been incurred through the appearance of the state attorney in court. Since then it was estimated that the cost would be above R250 000 and continue to rise as more appearances were made in court.

4.4 Plan of action
The Member of Executive Council gave a directive that the illegally constructed structures on the provincial department’s land in Lenasia , Lawley and Ennerdale needed to be demolished as a matter of urgency as the legal process had been followed and it had not swayed people from looting government assets. The actions were agreed upon as follows :
• Cutting off of illegal water, sewer and electricity connection sat the above areas to minimise wastage and damage to government property;
• Packaging of a security plan;
• Planning and development of the stands.

4.5 Progress on the implementation plan
The Head of Department reported that a meeting was held on10 October 2012 during which a presentation was made to the MEC who afterwards approved the project plan and implementation of the court order. The service provider was appointed to assist with the demolition and removal of rubble once the demolition had been completed. The provincial department engaged the services of the South African Police Service and the Johannesburg Metro Police Department to assist with the security and public order policing during the demolition of the illegal structures. In October 2012, notices of eviction were issued to occupants of the stands in Lenasia , who were given seven days to respond to the provincial department if they had any compelling reasons to put forward against the evictions.

On 8 and 9 November 2012, the department carried out the demolition of incomplete and unoccupied structures in the area. The demolition that was carried out was with regard to incomplete structures which were not occupied at the time of being demolished. There were 54 stands that were cleared so far. However, the rubble in the area had not yet been removed since that would be undertaken at a later stage. No people were evicted and displaced as a result of the demolition. No injuries occurred and no arrests were carried out on both days. It was also reported that 11applicants who were the illegal occupants of some of the properties earmarked for demolition had since made an application to court for an interdict to stop the department from demolishing the 11properties. The matter was still before the court and no decision had been granted yet. The department would provide the Committee with progress on the matter.

The South African Human Rights Commission had since made an urgent application to court asking for the suspension of the demolition and eviction and also asking the court’s permission to grant it 30 days to conduct an investigation into the matter, specifically with regard to the infringement of the constitutional right to dignity of the affected parties. The matter would be heard on15 November 2012 in the Gauteng South High Court. The outcome of the court case would be communicated to the Portfolio Committee by the department.

5. Deliberations - Comments/Concerns of the delegation
The delegation enquired as follows :
• Why were the other large houses left out and not demolished?
• Who was responsible for mediation, was it an independent
body or the department itself?
• When did the department discover that the area was dolomitic ?
• Was the department aware of its illegal action and what was the department’s plan of action?
• Was the community committee elected from stakeholders?

The delegation was concerned that it seemed that there was somebody somewhere who was selling the land and asked the department whether it was investigating the matter. On the issue that the court order did not compel the department to give these people alternate accommodation, the delegation referred the department to section 26 of the Constitution. The delegation enquired whether the building plans were approved and also whether the banks were aware that those people were building illegally. The delegation enquired whether an assessment was done to determine for how long people were living there and whether notices were issued to them to vacate the area. The Portfolio Committee on Local Government and Housing of the Gauteng Legislature informed the delegation that they went on site and were blocked by the community from entering the area. On16 November 2012, the department made a presentation to the provincial Portfolio Committee. The Committee was made aware of the following weaknesses :
• Lack of implementation of by-laws;

• Prevention of Illegal Eviction and Unlawful Occupation of Land Act, No. 19 of 1998 (PIE Act) was not working effectively in the province.

The Portfolio Committee of the Gauteng Legislature further informed the Portfolio Committee on Human Settlements about its recommendations to the department on this matter, as follows:

• Individual engagement with the illegal occupiers of the stands;

• Enforcement of by-laws;

• Demolition of occupied houses should be avoided until the process of court cases was finalised.


The delegation acknowledged that the department was dealing with a complex matter that required appropriate action in order to ensure that government as well as citizens were not compromised. The delegation condemned the illegal land invasion in the strongest terms. In relation to the ineffectiveness of the PIE Act, the delegation raised a question of the lack of commitment from government to implement the Act. Hence the national Department of Human Settlements or any provincial department had never come before the Portfolio Committee to indicate where challenges are in the implementation of this Act. No impact assessment or evaluation had been conducted so far by the department. The Committee observed that there was a lack of intergovernmental relations and cooperative governance as well as the provision of support mechanisms by the national and provincial governments to local government in order to prevent the illegal occupation or these invasions.

The delegation raised a concern on the department’s decision to stop the action plan which was in place because of a change in political leadership. The delegation said that it would be understood if the department indicated that the MEC instructed it to do so.

The delegation asked the department the following questions :
• What was the action plan for selling land?
• What would be done with the syndicates?
• When did the department notify the Portfolio Committee on Local Government and Housing, and what was the department’s role in terms of advising?
• Why were the community committee members not arrested?
• Did the department have a plan to protect witnesses?
• How far was the department with considering the recommendations of the Portfolio Committee on Local Government and Housing?

The delegation observed that the issue of Lenasia should be a lesson to all leaders of public representatives and spheres of government.

6. Responses

The department responded that they went to Lenasia on18 November 2012 and found that a certain man called Baloyi was not living in the area and the people staying there did not know each other. The department demolished 54 houses as from the date of the meeting but it was recorded that 53 houses had been demolished before the day of the meeting and that it had since been updated to54 houses. The department issued notices in October 2012 and put them on the doors of the houses but no one came forward. The department reported that it was working with the Hawks to deal with the matter.

The department also reported that the Hawks would protect any witnesses that came up with any evidence to make a strong case for the government. There were incidents of intimidation by the community committee members against witnesses, hence the mitigation process failed. The applicants of the court order were middle-income groups. The department reported that it worked well with the councillor since day one and that his house was under surveillance by the Hawks. On Thursday, 15 November 2012, the department met with the Banking Insurance and Securities Association (BISA) and out of 168 people, BISA reported 10 people as having loans and the department would request the Anti-Fraud and Corruption Unit and the Hawks to work together on the matter.

The department reported that they were not going to build in the area because of the dolomite. The township had been established, which explains why there was a tarred road in the area. The department was working with the Portfolio Committee on Local Government and Housing and was taking the recommendations of the Portfolio Committee seriously. The department responded that it were organising a meeting with the Mayor of the City of Johannesburg because there were also areas of land that belonged to the municipality. There were plans for the development of the areas and there was a need to integrate those plans with those of the municipality.

The way forward from the department was that it was not going to demolish the already-built houses. It was going to evaluate those houses and have the terms and conditions with the occupiers of the land for purposes of sale agreement. The department reported that it had requested condo nation from National Treasury and the Premier’s Office to continue developing the area without first submitting the plans and costing.

The Fivaz Commission, which was commissioned in 2002, found that there was illegal selling of land. The department started the demolition of illegally built houses but that action was stopped because of a court interdict. Ten people were arrested for illegally selling land and for fraud but the cases against three people were provisionally withdrawn by the court.

The delegation was of the view that there was a need for all individuals to come forward and discuss this matter with the department, and national and the provincial department needed to have a plan and strategies to deal with people who were not abiding by the law. There was a need for robust public participation processes.

The delegation agreed to adjourn the meeting in order to visit the site to convey the message of the meeting to the community and make some observations.

7. Site visit to Lenasia areas
7.1 Extension 13
The department highlighted that the large houses in Lenasia Extension 13, which had 54 houses, were empty and fully furnished.

The owner of the house, erf number 10634, illegally took another stand with erf numbers 11620 and 11619 and was collecting rent ofR2 500 from the tenants and had built a driveway to the other houses behind the main stand. The department reported that all newly built houses were illegal structures and were badly built. The department indicated that Lenasia South Extension 4 had just erupted and the people chose their space and built illegal structures. According to the department, some houses were built within three days.

The delegation interviewed some community members occupying the area illegally and they requested not to reveal their names for fear of reprisal.

7.2 Persons interviewed by the delegation
The people were informed that the Committee was busy with factfinding and that they should work together and advise government.

Interaction with community members
Person No. 1
The person interviewed was self employed and reported that he met with a friend and talked about trying to get a place to stay. His friend told him that there was a place where he could build his house on a vacant stand. This happened for two or three years. His friend came back, in 2012 and reminded him about that place. His friend is working in government and even showed him the map of the place, saying that there was water and electricity that needed free connections. In March 2012, person no. 1 gave the community committee papers to build on the stand and took ID copies and other information. They paid him an amount of R25 000 and said that they must ensure that they finish building by April 2012. Person no. 1 said that he knew the name of the person but was not going to reveal the name and that he was still meeting with him.

He said that they were vulnerable and were always knocking on the doors of banks for loans but could not get any because they were self employed and therefore ended up getting that place illegally.

Person No. 2
Person no. 2 said that in the previous year they were trying to find a place to build houses for themselves and could not find any. In 2012, they found a place in Lenasia . She said that she paid someone an amount of R10 000 and was still owing that man R15 000 to makeup R25 000. She was not given a receipt but was shown a map where she must build her house on a vacant stand. Another lady came to person no. 2 and said she was selling the same stand on which person no. 2 was trying to build a house. She told person no. 2 that she had bought the stand from the same person and they started arguing about the stand. Fortunately, person no. 2 got the stand with the assistance of the community and has built a house on it.

Person No. 3
In 2008, person no. 3 got two stands from two different people for about R40 000 each. He had paid R20 000 and had been given receipts and two maps. He was told that they would give him title deeds after he had erected some structures on the stands.

Community committee member ( Bongani Mpande )
The community committee member reported that they were robbed by government officials to buy stands and that by September 2010, the houses had been demolished. They then realised that that was a scam. He said that they engaged government and the former MEC. After the new MEC came in, houses were demolished and the matter is now sub judice . He reported that they had a meeting with the department where the demolition of houses was discussed and they wanted to resolve the matter of demolition amicably.

The delegation asked him why other people were building whilst the matter was before court, why people built houses overnight and why the community committee did not stop them from building. The community committee member said that they did not have there sources to stop people from building and requested the MEC and her department to assist them to stop the people from building on those stands.

The delegation requested the community committee to assist the department by ensuring that no more structures were going to be built as from Monday, 19 November 2012. The community committee members committed themselves to stop the building of houses.

The delegation told them that the Portfolio Committee on Human Settlements was disturbed by the demolition of the houses by government and that the Committee was conducting oversight over government’s actions. The Committee had met with government and was there to hear the views of the community committee and get the facts from the community and make recommendations. The Committee would sit with government and have a way forward and would look at the gaps and try to fill them.

Ring leader
The delegation met with a certain person who was a ring leader and was approached to tell the delegation how he got hold of the stand. He told the delegation that he had bought it from a government official and said that he knew the name, but was not going to reveal the name of the person to the delegation. He said that he had submitted the details of the official to the MEC. He reported that, as he was anticipating getting the title deed from that official, he started to build a large house (32mx20m) on the stand. He reported that he paid the government official an amount of R6 000.

The delegation requested him to co-operate with government on the matter. He said that the community committee members were cooperative during the time of the former MEC and received resources to root out the scam, but after the new MEC took office, they were not getting the assistance, only the demolition of houses. After the site visit the national and provincial committees together with government officials met at a government office and highlighted the way forward in terms of crafting the findings and recommendations.

8. Findings
• Representatives from both legislatures (national and provincial) agreed that there were policy gaps in terms of the implementation and enforcement of the Prevention of Illegal Eviction and Unlawful Occupation of Land Act, No. 19 of 1998, as well as the applicable by-laws.
• The individual community members were willing to come to the department with information as they found themselves being the victims of the circumstances. However, they were threatened by the syndicate leaders.
• The community committee was aware that there was a court interdict preventing it from erecting new structures, but it had no resources to stop the community from building their houses by night.
• The houses were built illegally on the land that belongs to the department and therefore people should not be the owners of those houses until the matter was resolved.
• The delegation observed that the community illegally connected water and electricity. This was done in collusion with officials from City Power and Johannesburg Water. The illegal connections cost the department an average of R100 000 per annum in terms of billing by the municipality.
• The action of the department was viewed as harsh and inhumane in implementing the court ruling.

9. Recommendations
The Minister should intervene and provide the necessary support to the provincial department and ensure that the provincial department :
• Enforces the PIE Act and that all spheres of government implement the Act.

• Stops the demolition of already-built houses and begins to engage with community members.
• Addresses the issue of syndicates (illegal selling of land) and the suspects must be arrested by the police.
• Assists the community together with the municipality with resources, such as security, to guard the vacant stands, including the demolished houses.
• Conducts individual profiling of the people affected by checking their financial status as this would assist in identifying who qualifies for rental housing, state subsidies and be assisted accordingly. The provincial department should delegate an official dedicated to work with the community on this matter.

During this period the delegation recommended that all stakeholders should work together until the crisis is over.

Report to be considered.

Documents

No related documents