ATC241114: Report of the Portfolio Committee on Human Settlements on oversight visit to KwaZulu-Natal Province, dated 12 November 2024

Human Settlements

Report of the Portfolio Committee on Human Settlements on oversight visit to KwaZulu-Natal Province, dated 12 November 2024

The Portfolio Committee on Human Settlements (hereafter the Committee) embarked on a four-day visit to the KwaZulu-Natal Province (KZN) from the 08 to 11 October 2024. The Committee reports as follows:

Acronyms

BNG Breaking New Ground
HDA Housing Development Agency
RLRP Rapid Land Release Programme
HRP Hostel Redevelopment Programme
UISP Upgrading of Informal Settlements Programme
URP Urban Renewal Programme
UDA Urban Development Agency
PHP People’s Housing Process
SCM Supply Chain Management
PRT Professional Resource Teams
NUSP National Upgrading Support Programme
LARLRP Land Acquisition and Rapid Land Release Programme
GPF Gauteng Partnership Fund
HSS Housing Subsidy System
RDP Reconstruction and Development Programme houses
FLISP Finance Linked Individual Subsidy Programme
USDG Urban Settlements Development Grant
HSDG Human Settlements Development Grant
SANS South African National Standards
DBSA Development Bank of Southern Africa
SHRA Social Housing Regulatory Authority
TRUs Temporary Residential Units
TRA Temporary Residential Area
SAPS South African Police Service
FEDUP Federation of the Urban and Rural Poor
CRO Community Resource Organisation
EPHP Enhanced People’s Housing Process
PDMC Provincial Disaster Management Centre
PWWTW Phoenix Wastewater Treatment Works
ISA Infrastructure South Africa

1. Background and purpose of the oversight visit to KwaZulu-Natal

The Committee’s mandate is to maintain an oversight responsibility that ensures a quality process of scrutinizing and overseeing government action. It is driven by the ideal of realizing a better quality of life for all people in South Africa. It is also required to facilitate public participation as well as oversee compliance with regulatory legislative frameworks related to human settlements. In brief, the Committee considers legislation referred to it, conducts oversight of any organ of state and constitution falling within its portfolio, considers international agreements, and considers budget of Department and Entities falling within its portfolio.

This is to ensure that the executive fulfils its mandate and is always held accountable. In order to protect the environment and ensure the development of sustainable human settlements, oversight visits enable the Committee to be better positioned to understand proposed programmes, projects, targets that have been achieved and challenges that hinder service delivery.

The objective of the visit is to conduct a briefing session with the provincial department, municipalities as well as other relevant stakeholders in relation to the implementation of the human settlement’s strategic plans, projects and programmes. The Committee would like the provincial departments to present their business plans for 2024/25 financial year. In addition, the Committee recognised the need to conduct site visits.

The focus of the Oversight Visit will be on the following key issues:

Implementation of a comprehensive, integrated human settlements strategy in the province.
Progress made towards the achievement of Outcome 8 outputs and targets set for 2023/24.
Budget expenditure and performance in meeting service delivery targets set for 2023/24 and budget for 2024/25 financial year.
Update on flood disaster relief and recovery intervention.
Progress made in the issuing of pre- and post- 1994 title deeds and challenges hindering this programme.
Progress made in the construction of houses for military veterans and challenges encountered.
Progress made on the construction of houses for destitute, special needs and vulnerable people.
Rural and farm worker assistance, housing co-operatives assistance programme as well as the People’s Housing Process.
Plans and progress on conversion of hostels into Community Residential Units (CRUs).
Co-ordination and management of the beneficiary list and incorporation of backyard dwellers into the provincial housing database.
Use of alternative technologies in construction.

2. Delegation

2.1 Committee multi-party delegation comprising of the following members

Mr Seabi, A M (Chairperson) and the leader of the delegation; African National Congress (ANC); Mr Dithebe, S, ANC; Ms Magagula, T E, (ANC); Ms Kegakilwe, B M, (ANC); Mr Mphithi, L Democratic Alliance (DA); Mr Poole, C J (DA); Ms Abader, Z S, uMkhonto weSizwe Party (MK); Mr Gamede, T E (MKP); Ms Dlamini, M, Economic Freedom Fighters (EFF); Ms Buthelezi, S A, Inkatha Freedom Party (IFP); Ms Frenchman, S, National Coloured Congress (NCC).

2.2 Committee Support Staff

The Committee was supported by Ms K Pasiya-Mndende, Committee Secretary; Mr K Naidoo, Committee Assistant; Mr T Makhanye, Committee Researcher and Mr M Molepo, Committee Communications Officer.

2.3 Ministry and National delegation

Ms T Mahambehlala, Deputy Minister, led the department delegation together with Dr N Mhlongo, Deputy Director-General.

Names	Designation	Branch
Mr Vuyani Gule	Assistant Liaison Officer	Ministry
Ms T Makata	Liaison Officer	Deputy Minister’s Office
Mr Dlamini		Deputy Minister’s Office
Chris Raseleka	Director: Office of the Director-General	Director- General’s Office
Dr Mhlongo	Deputy Director- General and DDM Champion for KwaZulu -Natal	Research, Policy, Strategy and Planning
Sanjay Arjun	Acting Director	Informal Settlements Upgrading & Emergency Housing
Luanne Werner	Programme Manager: Tittle Deeds	Affordable Rental & Social Housing
Aaron Hobongwana	Deputy Director: Community-Driven Housing Initiative
Vicent Morodi	Deputy Director: Community Residential Units
Sne Ndimande	Deputy Director: Social Housing
Kwazi Vilakazi	Assistant Director: Mining Towns
Pumla Dlamini	Director: Grants Management	Chief Financial Officer
Bonke Mangxaba	Project Management Specialist: Grants Management	Chief Financial Officer
Bulumko Ntlantsana	Deputy Director: Intergovernmental Relations	Entities Oversight, IGR, Monitoring and Evaluation
Andile Mncube	Acting Director: Monitoring and Evaluation
Nicholas Madisha	Director: Legal Advisory Services	Legal Services

2.3 Provincial Delegation

The provincial delegation was led by Mr M Zungu, Head of Department, and was accompanied by Mr T Bengu, the Deputy Director-General.

3. Briefing by the National and Provincial Department of Human Settlements for 2022/23 financial year

Ms T Mahambehlala, Deputy Minister of Human Settlements, led the departmental delegation. Dr N Mhlongo, Deputy Director-General Research, Strategy, Policy and Planning, who is the designated District Development Model (DDM) departmental champion for the province supported the Deputy Minister. The national department presented as indicated below:

3.1 Human Settlements Grant Performance as of 31 August 2024 for KZN and eThekwini

The presentation provided a detailed performance report on the Human Settlements Grants as of 31 August 2024, focusing particularly on the Human Settlements Development Grant (HSDG), the Informal Settlements Upgrading Partnership Grant (ISUPG), and the Urban Settlements Development Grant (USDG) for the provinces of KwaZulu-Natal and the eThekwini Metro. The HSDG total allocation for the 2024/25 was R13.6 billion, with R6.42 billion transferred to provinces by 31 August 2024. The total reported expenditure was R5.66 billion, which accounts for 88% of transferred funds and 41% of total available funds.

3.1.1 Provincial Performance:

It was reported that provinces such as KwaZulu-Natal (KZN, 52%), Limpopo (LP, 59%), and Mpumalanga (MP, 56%) have spent more than half of their allocations, posing a risk of exhausting funds before the fiscal year ends. The Free State (FS, 35%), Gauteng (GP, 33%), Western Cape (WC, 33%), and Northern Cape (NC) were below the 40% expenditure mark. KZN has overspent its HSDG funds, spending R1.31 billion against a transferred fund of R1.03 billion, resulting in a negative balance of R539 million against transferred funds.

3.2 Informal Settlements Upgrading Partnership Grant (ISUPG)

The 2024/25 total annual allocation was R3.25 billion, with R1.2 billion transferred by the end of August 2024. A reported R971.9 million spent represents 81% of the transferred funds and 30% of the total available funds.

3.2.1 Provincial Performance:

It was reported that provinces like Limpopo (55%), Mpumalanga (51%), Northern Cape (47%), and KZN (45%) have surpassed 40% expenditure. Other provinces are below the 40% mark, with Free State (25%), Gauteng (15%), and Western Cape (11%) lagging significantly.

3.3 Urban Settlements Development Grant (USDG)

The USDG for 2024/25 had an allocation of R8.71 billion, with R2.23 billion transferred to Metros by 31 August 2024. Only R423.7 million had been spent, which was 19% of transferred funds and 4.9% of total voted funds.

Metro Performance: eThekwini (37.6%) and City of Johannesburg (30.3%) were the only Metros exceeding 25% expenditure, while others, like City of Ekurhuleni (0.9%), show very low spending rates.

3.3.1 eThekwini Metro Fund Utilisation

The eThekwini had allocated funds across various categories, such as strategic land acquisition, housing, and infrastructure development, with significant unspent funds remaining in categories like sanitation (90.8% unspent) and water (95.1% unspent). The report highlighted that various projects were underperforming in terms of expenditure, with many projects experiencing delays or insufficient execution.

3.4 Human Settlements Non-Financial Performance for KZN

The presentation outlined the non-financial performance of the HSDG in KwaZulu-Natal (KZN) as of August 31, 2024. It was structured to present various aspects of HSDG’s operational outcomes, compliance with business plans, challenges faced, and recommendations for future actions. It was aimed at providing a comprehensive overview of KZN's HSDG non-financial performance up to the specified date. It also included various sections detailing performance metrics such as serviced sites and housing units delivered against annual and quarterly targets.

KZN's full annual target for serviced sites was 423, with only 15 delivered by the end of Q1 (April-August 2024), indicating a 3.5% achievement rate. For housing units, the target was 7,516 with 3,799 delivered, achieving 50.5%. The performance showed a stark contrast in Q1, where the target for serviced sites was 1, and 15 were delivered, achieving an impressive 0% to 162% for units delivered (2,668 against a target of 1,642). For Q2, there were no serviced sites delivered, but 1,131 housing units were delivered against a target of 2,046, resulting in a 55.2% achievement. There were 416 projects in KZN, with expenditures incurred for Q1 noted as 228. Issues arose with 39 projects showing no expenditure and some projects performing outside the business plan. The presentation highlighted several obstacles affecting performance such as water provision. Many local municipalities were unable to provide water to contractors, who then must source their own, sometimes from rivers, causing delays. The Business Forums - the presence of local business forums demanding material supply, and a share of project work had led to community unrest and halted projects. The financial constraints from previous fiscal years have negatively impacted project implementation and contractor payments due to budget cuts. The Infrastructure Issues - the lack of budget for essential bulk infrastructure has been detrimental to project progress. The report included images showcasing various project outcomes, including facilities for disabled individuals, ongoing construction challenges due to difficult terrain, and issues with access roads.

3.5 Presentation on the disaster intervention for KZN

The presentation outlined the progress and ongoing efforts in response to various disasters affecting households in the KwaZulu Natal Province. The presentation reported progress in the Human Settlements Disaster Interventions for households affected by disasters, primarily focusing on the aftermath of floods, fires, and severe weather conditions. The national department allocated emergency housing funds through the Provincial Emergency Housing Grant (PEHG) and the Municipal Emergency Housing Grant (MEHG). However, starting April 1, 2023, these grants were replaced by the Emergency Housing Response Fund (EHRF), with allocated budgets of R523,265,000 for the 2023/24 financial year and R496,765,000 for 2024/25. The province has faced extensive rains affecting informal settlements, particularly those near riverbanks, leading to significant damage. Delays in damage assessments have occurred due to inaccessible areas. Contractors have been appointed to construct Temporary Residential Units (TRUs) and provide building materials as needed.

The report provided a detailed overview of the Disaster Response Team, including contact persons and their responsibilities from various stakeholders, such as the national and KwaZulu Natal Departments of Human Settlements, NHBRC, and HDA. The Emergency Housing Interventions report outlined four types of interventions that can be provided by the national department: rebuilding destroyed structures, relocating households to safer areas, restoring building materials for affected informal settlements, and repairing partially damaged houses. The report also outlined a structured response process, emphasizing the role of the Provincial Disaster Management Centre (PDMC) in managing information and actions related to disasters. It also included performance indicators for the annual target, noting achievements in developing emergency housing plans and conducting disaster awareness sessions. It provided a breakdown of the costs associated with constructing a Temporary Residential Unit (TRU), including both direct and indirect costs, totaling R97,685. Beneficiaries in informal settlements received a specific set of building materials as part of restoration interventions, aimed at assisting them in rebuilding their homes. It further described efforts to increase awareness in disaster-prone areas, detailing stakeholder participation in disaster awareness programs. Structural assessments conducted by the NHBRC have reported on the condition of numerous houses affected by disasters, with final reports pending for further recommendations. A progress report on TRUs indicated the status of construction and challenges faced by contractors in various municipalities, highlighting issues such as duplicate beneficiaries and accessibility. It had cited key legislative prescripts and decisions guiding disaster response and recovery efforts, emphasising the importance of adequate housing and emergency procurement.

4.4. Presentation by the Provincial Department of Human Settlements

Mr X Ngwezi, Mayor of uMhlathuze local municipality, later joined the meeting and welcomed the delegation.

Mr T Bengu, Deputy Director-General and Mr M Zungu, Head of the Department, provided a presentation and briefed the Committee. The report summarised key information and the core focus was on housing delivery, budget allocation, challenges faced, and disaster interventions. The mandate aimed to ensure poverty eradication, balanced economic growth, employment creation, and the implementation of policies and strategies to improve spatial equity in housing delivery. The province was faced with significant backlogs in housing delivery. The data from the 30-year housing delivery report indicated a cumulative total of 759,159 housing units delivered, highlighting a consistent effort in addressing housing needs since 1994. The budget allocation for human settlements from financial year 2019/20 to 2024/25 shows a total reduction of R1.4 billion. The baseline allocation had experienced fluctuations, with significant decreases noted in certain financial years. For instance, the baseline allocation in 2023/24 is R4.34 billion, indicating the financial constraints faced in housing delivery.

The key developments included various Integrated Residential Development Programmes and informal settlement upgrades. As well as the upgrading of informal settlements and provision of serviced sites for low-income households. There were several challenges that have been identified such as non-availability of suitable land for development; financial constraints due to budget cuts; poor performance by contractors and delays caused by socio-political issues and a backlog in rectification of RDP stock pre-1994.

4.4.1 Disaster Response and Relief Efforts

The report outlined the ongoing disaster response efforts following significant flooding and storm incidents in KZN. Notably, 1,766 Temporary Residential Units (TRUs) have been constructed, demonstrating a 98% success rate in addressing emergency housing needs. The funding allocation for disaster response was noted as R342,127,797, achieving 100% expenditure.

4.4.2 Blocked Projects

The report highlights 43 stalled projects across various districts, primarily due to land issues, poor-performing contractors, and bulk infrastructure.

5. The delegation was also briefed on the Project Profiles of the sites to be visited

5.1 Cornubia

The presentation provided a comprehensive overview of the Cornubia Integrated Human Settlement project, which aimed to transform a strategic farmland area into a new town. The project objectives focused on maximizing delivery and improving connectivity between impoverished and affluent areas, particularly by linking the Cornubia North area with the Northern Urban Development Corridor (NUDC) and the airport.

The Cornubia development is divided into multiple phases:

5.1.1 Phase 1

Phase 1A and 1B have completed the construction of 2,662 BNG (Breaking New Ground) houses, with 2,616 transferred to beneficiaries. Additionally, 232 affordable housing units were planned, with construction expected to begin in February 2025, pending funding approval. Social facilities, including a primary school, multipurpose hall, clinic, and sports fields, were under construction and due for completion in October 2024.

5.1.2 Phases 2A, 2B, 2C, and 2D*:

Phase 2A* includes 1,596 BNG houses, 490 affordable units, and 814 social housing units. Civil infrastructure construction is underway.

Phase 2B* will yield 976 BNG units, 910 affordable units, and 1,123 social housing units, with ongoing construction of bulk civil works.

Phase 2C* anticipates 519 BNG, 530 affordable, and 1,436 social housing units, with applications for approvals submitted.

Phase 2D* will provide 629 BNG, 736 affordable, and 928 social housing units, with layouts and approvals under review.

With regards to infrastructure Development, there has been significant progress made in bulk infrastructure, including the completion of three major interchanges and upgrades to water and sanitation facilities. The Phoenix Wastewater Treatment Works (PWWTW) has increased capacity, and the Ottawa Sub-Station has upgraded its electricity supply capabilities.

5.1.3 Cornubia Boulevard Development:

The Cornubia Boulevard was a key transit-oriented development connecting various phases of the housing project and integrating public transport facilities. Funding applications for the necessary infrastructure have been submitted but face challenges due to prior unsuccessful attempts. The project aimed to ensure the Boulevard is shovel-ready to facilitate blended finance solutions.

The plan included provisions for educational facilities, health clinics, and other social amenities, with timelines for completion aligned with housing rollout. The first primary school was expected to be completed by August 2024. The project includes economic development initiatives, such as community retail facilities aimed at empowering local businesses and connecting residents with job opportunities.

By 2030, the aim was for eThekwini to become Africa's most liveable city, with the Cornubia project contributing to this vision through comprehensive planning and integration of housing, infrastructure, and community services.

5.1.4 Challenges and Constraints:

The project faced several challenges, including budget cuts due to the COVID-19 pandemic, reliance on infrastructure that has yet to be fully funded, and the restructuring of Tongaat Hulett Developments, the lead private sector partner. There were also risks related to informal settlements nearby, which may impact housing allocations and the overall development. In summary, the Cornubia Integrated Human Settlement project was a multifaceted initiative aiming to create a well-connected, sustainable community through phased housing development, infrastructure enhancement, and social amenities, while navigating various challenges and constraints.

6. Observations and deliberations by the delegation

The delegation appreciated the information shared. However, it was disturbing to learned that the budget was not spent and sought clarity on what were the contributing factors and what was the analysis of spending. It wanted to know if the construction mafias were obstructing the construction of projects and what were the plans or strategy in dealing with them. A concerned was raised regarding the centralisation of the emergency housing fund – taken to national which used to be the competency of the municipality alleging that it was compromising delivery and the speed that is required in assisting the needy. The delegation was of the view that the administration of emergency funding at national level exposes the fund to be inefficient and bottlenecks that have a direct negative impact on the lives of the people. It was alleged that the regime of emergency housing seems to be ineffective and inflexible to the needs on the ground versus the nature of the disasters in the province that requires speed and flexibility to ensure that people are protected as assisted timeously. Concerned about the delays in the verification of beneficiaries and assessment of damaged houses have taken 10 to 12 months or longer. Urged the department to develop a functional mechanism to ensure that the funds were responsive to the needs of people affected by disasters. The backlog in the issuance of title deeds was worrisome and sought plans on how the province was planning to address it. It was noted with concern the continued challenges of coordination between different spheres of government, with the inability of municipalities to provide bulk infrastructure to enable the completion of projects timeously. It further maintained its view that there must be better coordination and planning between spheres of government to ensure that the development of infrastructure is holistic in nature and better coordinated, as proposed by the District Development Model. Noted the impact of budget cuts on project implementation, thus hindering beneficiaries. It believes that coordination and enhanced project management will eradicate delays and financial overruns. The issue of the construction mafias, the so-called business forum was seen delaying projects and wanted to know how eThekwini metropolitan municipality deals with construction mafias. Sought clarity on whether the province considered alternative building technology, more so for TRU’s taking into account that KZN province was prone to flooding and other natural disasters. Bemoaned that the Human Settlements Blocked Projects Strategy does not seem to be talking to any of the challenges and needs and should be relooked at.

7. Site Visits

7.1 Empangeni Mega Project

7.1.1 Empangeni IRDP Phase 1c

The project was approved in 2018 for 146 units. The total budget allocation for this project is R26 034 115,64. Waterstone Country Estate (Pty) Ltd was appointed as am implementing agent for this project. The project has at the end of quarter 1 spent R117 426 on professional fees (transfer costs and beneficiary administration). Upon verification, there were various milestones on the ground, including wall-plates and slabs. There were no completions on the ground.

This project is divided into three phases. Phase 1 area was cane field, and it is 245 hectares. 146 houses were planned for construction. The project completion was expected to be on the 31 March 2025, however due to financial constraints resulting into three houses being a month. This project would not be completed on the targeted date.

Despite the slow progress of the project, the delegation was disappointed at the fact that the built structures were not compliant with the National Home Builders Registration Council (NHBRC) standards and with the progress of the project. In view of the above, the delegation requested that the project manager should share the quality assurance certificates for the projects, i.e., Environmental Impact Assessment and Geotechnical Assessment.

The delegation raised concerned with the quality of work in the name of “emerging contractor’s empowerment”, emphasising that this activity needs to be closely monitored. The delegation directed both Departments to relook into the alleged “three houses per month” instruction to understand the basis for such.

The national department responded that the project has since paid professional fees in the current financial year, the various milestones that were on the ground have not been claimed. The claims will be brought forward once the milestones were certified.

7.2. Dumisa Makhaye Village Phase 8,

The project was approved in 2014 for 133 units. The total budget allocation for this project was R22 219 262,48. InfraServ (Pty) Ltd was appointed as an implementing agent for this project. The project has at the end quarter one (1) spent R716 904,82 for completions, wall-plates, retaining walls as well as professional fees. In this project, out of 133 houses planned for construction, 23 have been completed, however, 36 houses will be completed on 31 March 2025. The completed houses were comprised of a two-bedroom, an open lounge and a kitchen, a bathroom fitted with toilet with a shower and a hand-wash basin. The exterior walls were plastered and painted. In addition to this, 10 houses were built every month, and they all meet the NHBRC standards. However, electrical connections were still outstanding, which were supposed to be done by Eskom.

7.3. Qadi Rural Housing

The delegation met and greeted the leadership of the municipality. Mr Shezi, Deputy Mayor and Mr Shange, the Speaker welcomed the delegation as well as Amakhosi. Mr Bhengu, DDG summarised the state of housing in Maphumulo stating that 63% was tribal land, an amount of 254 million was allocated. There were about 333 houses build, and 137 title deed issued. There were six (6) stalled project and there were 22 informal settlements in the district. There were 500 Temporary Residential Units (TRUs) completed and handed over to beneficiaries.

The Qadi Rural Housing project was approved in 2012 for 300 units. The total budget allocation for this project was R6 0520 179. Zedek was appointed as an implementing agent. The project had at the end of the quarter one (1) spent R6 417 395,44, which was spent on wall-plates, VIP toilets, water tanks and Geotech as well as professional fees.

Upon the verification, there were completions in this project and as well as various milestones. The completed houses are comprised of a two-bedroom, an open plan lounge and a kitchen, a space allocated for a bathroom, that can be used at the discretion of the beneficiary. The project provides VIP toilets and water tanks.

The delegation raised concerns about the quality of houses in this project. The delegation was of the view that the shortcomings in the Qadi project were worrying considering that the Provincial Department of Human Settlements confirmed that quality assurance inspectors were allocated on all projects to monitor and inspect the quality of the houses built.

In this regard, the delegation called for the KZN Department of Human Settlements to institute consequence management against officials in the quality assurance unit as there was clear evidence of dereliction of duty on their part.

The delegation further contended that poor workmanship has a downstream effect of cost escalation as the National Home Builders Registration Council (NHBRC) will not deem the structures compliant and corrective measures will have to be implemented.

During the Qadi Rural Housing Project site visit, the Deputy Minister and the delegation raised several issues. However, what was concerning were two houses in one yard, an RDP house and a formal dwelling which is a middle class-built house. For the delegation, this was a clear demonstration of misrepresentation by the beneficiaries, as this showed that there was no need for government assistance.

This includes, few TRU’s and slabs which had been left by the contractor 2 to 3 years ago when people affected by floods were not assisted.

7.4. Maqumbi Project

The Maqumbi Rural Housing Project comprised of phase one (1) with 1500 units at a planning stage. However, construction of 300 units at a cost R60 million had begun, with a target of 50 units completed at the end of March 2025, at cost of R11 million. The following progress was reported:

130 units were at the slab level
81 units were at Wall plate
89 units were at roof level and 17 units were completed and occupied by the respective beneficiaries.

The completed houses comprise a two-bedroom, an open plan lounge and a kitchen, a bathroom fitted with toilet, a shower and a hand-was basin. The exterior walls were plastered and painted.

Upon the verification, the following challenges were identified - most of the completed houses did not have flushing toilets; they did not have water, no electricity, no boreholes. People in the area were still relying on pit latrines, there were no completions in this project and as well as various milestones.

7.5. Sihle Phakathi Informal Settlement

The project was approved in 2015 and is implemented in phases. Phase 2 being the construction of 45 top structures and phase 3 being for services. Mzansi Africa Civil were appointed for the development of top structures (45) at a contact value of R5 418 439,26. At the end of quarter one (1), the project has spent R203 779, 65 for various milestones including completions of wall plates, and foundations.

The completed houses in the Sihle Phakathi project comprise a two-bedroom, an open plan lounge and a kitchen, a bathroom fitted with toilet a shower and a hand-wash basin. The exterior walls were plastered and painted. The project has electricity and water.

Phase 3 of the project, which was the development of services such as roads, sanitation, and storm water for 1 589 stands, was allocated a total of R120 873 354,39. As at the end of quarter one (1) the project had spent R 8 409 219, 62. Metro Projects Developers were appointed for this activity.

The delegation commended the quality of houses at the Sihle Phakathi Informal Settlement Upgrade. The delegation was of the view that the quality of the houses in KwaDukuza should be a benchmark set for quality in the province. However, caution was raised given the terrain in which the project was implemented. The area is sloppy, with a high watercourse and unfavorable road level. The PDHS and the Municipality were advised to strengthen storm and drain management strategies to mitigate potential risk given the terrain.

7.6. Steve Biko Informal Settlement

The delegation did not visit the project due to logistical issues presented by the KwaDukuza local municipality on getting to the project and bad access roads leading to the project which may lead to traffic congestion.

7.7. Red Cliff

The Redcliffe Valley View Housing Project is a low-income housing project located in the Northern part of eThekwini Municipality (Wards 59 and 60), approximately 3km to the West of the Verulam CBD. The project has a total yield of approximately 600 sites.

7.8. Umbhayi Housing Project

The delegation was informed that the project would yield 779 in total. In phase 1 there would be 248 units and out of this number 11 units were completed. There were two bedrooms on top and on the ground, there was lounge and kitchen and toilets.

The delegation also requested the planners to relook at the plans of the units as the toilet was near to the kitchen which raised the issue of dignity and health issues. The delegation complained about the length of time it takes to resolve some of the challenges impeding the seamless implementation of this project. The eThekwini Metro Municipality appreciated some of the social issues hindering progress in informal Settlements Upgrading when they visited uMbhayi Housing Project.

7.9. Glebelands Hostel

The Glebelands hostel was handed over to eThekwini Municipality in 2008 it is estimated that there were 20 000 legal residents and about 6000 illegal residents. The hostel is thus characterised by overcrowding, badly maintained buildings and over-capacity infrastructure. There was a high rate of unemployment, and the current environment lends itself to a high rate of criminal activities. As a result, the present living conditions in the area were health and safety concerns. The original complexes were in dire need of physical and social redevelopment.

The task of regularising small and informal businesses at Glebelands Hostel was underway under the guidance of the Human Settlements Unit in partnership with Business Support, despite the slow progress with regards to the implementation of this project due to budgetary constraints and unforeseen circumstances.

The delegation wanted to be furnished with state of progress of the project regarding the implementation of Public Protector findings.

The Municipal Response was that the maintenance and cleaning were deeply dependent on rental collection, which is extremely low (rental rate for a bed in a dormitory style was (R45.00) forty-five rands per month and a converted hostel into a family unit was (R750) Seven hundred and fifty rands per month.

The security issue remains a challenge as most tenants were not documented. However, the municipality was converting units into family units which would be three story walk-ups, the anticipated completion date was December 2025.

7.10. Donnely Project

The site was formally a convent accommodating 68 beneficiaries; however, the project was set to deliver 128 rental units of two bedrooms and bachelor units. The beneficiaries were paying rent with the private landlord, who has since sold the building to the municipality, however, since the municipality took over the payment rate, had since declined. The construction will cost R51 million.

The delegation raised concerns over how bachelor units can accommodate a family. What was expressed is that rental accommodation does not necessarily only cater for nucleus families. The municipality expressed those rental collections as a major challenge for CRU projects. The delegation was concerned that there was no ventilator, however the NHBRC explained the issue of vents that were not installed.

7.11. Cornubia Project

The Cornubia Boulevard is part of the C9 IPTN route which transverses the Cornubia Development and was broken into various work packages. Part of the Cornubia Boulevard Precinct was located adjacent to the Cornubia Phase 2A Housing Development, and there was a requirement to integrate the two developments in terms of bulk earthworks and bulk services (essentially to value engineer the cut and fill exercise).

A funding application, which incorporates all bulk infrastructure requirements including roads, water and electricity to unlock both Municipal precincts and private sector developments along Cornubia Blvd, had been registered with ISA (Infrastructure South Africa) but there was no progress to date however, additional studies were being undertaken, for submission to BFI when the next window is opened.

There were no notable concerns about the project by the delegation.

7.12 Banana City Housing Project

The Banana City is an informal settlement comprising roughly 220 households and is located on land adjacent to and owned by the University of KwaZulu-Natal (UKZN), Westville Campus, between Westville and Reservoir Hills within the eThekwini Metro. The project was planned to deliver low-cost housing units, roads and services by the eThekwini Municipality and the National Department of Human Settlements.

This project seeks to provide an in-situ formalisation of 417 low-income residential housing sites, which involves the construction of new houses on a site approximately 8 hectares in extent at Banana City, Westville, KwaZulu-Natal. Infrastructure such as sewage reticulation, storm water control, roads, electricity supply and potable water connections will form part of this the in-situ upgrade.

During the visit, there were two residence who were reported to be refusing to move blocking the progress of the project. The one resident was reported to be represented by the lawyer and the municipal officials had been struggling to meet with the lawyer. The other resident, a pregnant woman on interaction with the delegation she cited health hazard issues in the area that was used as a relocation site. Residents that were relocated already had issues with fewer toilets and water pipe, some were far from the points. She indicated that as a pregnant woman situation in the relocation site was a risk to her and the unborn baby. She also cited the issue of crime as it was not accessible as well as public transport which was far.

The delegation was of the view that the issue raised by the resident were valid and the municipality should erect extra water pipes as well as toilets. In addition, the site should be accessible as well as that public transport should be investigated.

7.13 KwaMashu L Section – Asbestos Removal

It was reported that the project was a response to Regulation 293, for pre 1994 housing stock with asbestos roof. The municipality was assessing the houses and demolish and rebuild as per the current specifications. The quality of the completed house was of good quality. The province was of the view that more funding was required to fast-track the demolishing and rebuilding of houses with asbestos roof.

12. Meeting with Community Based Organisation

12.1 Presentation by Abahlali baseMjondolo

Mr S Zikode presented on behalf of the organization. Abahlali baseMjondolo is a grassroots movement formed in 2005, focused on advocating for the rights and dignity of shack dwellers and the impoverished in South Africa. Their vision is to build a just and equal society based on respect and dignity, while their mission emphasizes improving the lives and living conditions of these communities. The movement has actively worked to organize shack settlements, aiming to enhance service delivery by bridging the gap between government and the people. They promote constitutionalism, democracy, and the rule of law, successfully preventing many violent evictions through education and engagement with the constitution.

However, Abahlali faces significant challenges, particularly in KwaZulu-Natal, where municipalities such as eThekwini, uMsunduzi, Newcastle, KwaDukuza, and uMshwathi have refused to engage with them genuinely. There is a lack of transparency regarding government spending, and the municipalities have not implemented the Upgrading of Informal Settlements Plan (UISP), leaving many settlements without basic services like water, sanitation, and electricity. Some families are living in transit camps under poor conditions, and specific vulnerable groups, such as families with disabilities in eNduduzweni, have faced severe neglect, including the cutting off essential services.

The presentation highlighted the ongoing systemic issues, including racism, particularly in KwaDukuza, where wealthy individuals are influencing municipal actions against shack settlements. Eviction notices have been served to longstanding communities instead of engaging in dialogue, and a peaceful march organised by Abahlali on September 16, 2024, was ignored by local authorities.

In his concluding remarks, Mr Zikode indicated that the Minister of Human Settlements, Ms Kubayi, had previously promised to engage with Abahlali and hold a workshop on UISP, but these commitments have not been realised. The movement seeks intervention from the Portfolio Committee to facilitate a meeting and address the urgent issues facing shack dwellers

12.2. Meeting with uTshani the agents

Mr P Matsemela presented on behalf of the organization. uTshani Fund operates as an agent for the Federation of the Urban and Rural Poor (FEDUP) and is a level 1 B-BEE registered company under the Companies Act of 2008. The organization serves as a community-managed revolving loan fund initiated by FEDUP to channel housing resources to the poor, promote efficient community organization, empower women, and create a united front among low-income communities. The Fund's primary activities include the Community Organisation through Savings by encouraging members to form savings groups. Enhanced People’s Housing Process (EPHP) Construction by Supporting housing development. Informal Settlement Upgrading by Improving living conditions in informal settlements. Income Generation and Livelihoods by facilitating economic opportunities for community members. uTshani Fund provides technical assistance, loans, and financial support specifically to community-led initiatives. They work with organized savings groups within FEDUP and prioritize communities with proven organizational and financial management skills. uTshani Fund has completed various housing projects through different financing models, including revolving loans and government subsidies. They are currently involved in multiple projects across several provinces, with a pipeline of prospective beneficiaries. The organisation faces several challenges:

Lack of registration on the Community Resource Organisation (CRO) database, leading to project approval issues.
Delays from government officials in responding to submitted proposals.
High staff turnover affecting continuity and understanding of the EPHP.
Frequent misplacement of submitted documentation.

In response to the Abahlali presentation, the Deputy Chair of the eThekwini Portfolio Committee on Human Settlements – Mr S Mkhize indicated that there has never received any communique from Abahlali. There were several Human Settlements projects, where shack dwellers have benefited. For example, there were 598 informal Settlements under the Metro invitation that was extended to Abahlali, to engage the Human Settlements cluster on these matters. He undertook to follow up on the issue of Transnet houses and investigate the disconnection of water and electricity for people living with disabilities and report on Friday, 11 Oct 2024.

The Head of Department of the provincial department, Mr Zungu, responded to the Abahlali presentation. He confirmed the lapsed communication in the past two years ago. There have been other engagements with numerous organisations and interest groups, excluding Abahlali. There were several Memorandum of Understanding (MOUs) with various community-based organisations, which have helped to resolve Human Settlements related community challenges. The commitment to reinitiate engagements via the Office of the MEC was revived. He requested that he be given the memorandum submitted to KwaDukuza Municipality.

On the other hand, The Federation of Urban Poor/uTshani Fund did not have any complaints but presented their manifesto and were happy with the work they are doing with both the province and the metro. They would, however, like to see more EPHP projects being implemented around the country.

Input by the delegation

The delegation directed that the province along with the Metro should convene a dialogue with the Abahlali baseMjondolo organisation as a way of finding solution to issues it presented to the to the Portfolio Committee. Need for eThekwini to audit or verify and respond to each allegation on the 5000 members being sidelined and punished. The delegation urged the Abahlali to use the same energy of raising concerns and protest mode, to assist the Metro in encouraging members to pay for services, to ensure continuous provision of quality services.

13. Observations by the Committee

Based on the presentation presented and the site visit conducted, the Committee observed the following:

The committee was highly impressed by the quality of houses at the Sihle Phakathi Informal Settlement Upgrade. Also, the committee was unequivocal in its call for the appointment of contractors that have the capacity and knowledge to deliver projects. While the committee acknowledged the need for empowerment, it was quick to underscore the need for adequate support to emerging contractors to ensure that they deliver quality projects within set timelines and within budgets.

Concerned about poor or non-expenditure on the appropriated funds by the KwaZulu-Natal province and the local municipalities. The funds transferred to the province were not utilised appropriately and, in most cases, funds have been transferred to performing provinces or even back to fiscus.
Dismay by lack of connection between national, province and local governments pertaining to handling of projects.
Lack of uniformity in terms of the quantum for construction of BNG houses, in some areas it was reported to be R148 000 and in other areas to be R160 000.
Disappointed about poor workmanship as has been observed in some housing projects such as Qadi Rural Housing project in Maphumulo local municipality.
The delegation was of the view that the beneficiaries deserved the best and what was seen was inappropriate and unacceptable. It was alleged that it was due to lack of monitoring by inspectors. Contended that poor workmanship has a downstream effect of cost escalation as the National Home Builders Registration Council will not deem the structures compliant and corrective measures will have to be implemented.
The province cited lack of budget for slow implementation of project for example, the contractor was instructed to build three houses a month. In Qadi Rural Housing, there was no connection to sanitation even thought there was water and that was reported as lack of funding to install quality sanitation. Providing only a house and not the necessary bulk services undermine the general mandate of the department
The committee was highly impressed by the quality of houses at the Sihle Phakathi Informal Settlement Upgrade. The committee is of the view that the quality of the houses in KwaDukuza.
The delegation raised concerned with the quality of work in the name of “emerging contractor’s empowerment”, emphasising that this activity needs to be closely monitored.
In KwaMashu, the asbestos removal project was doing well, however, there was not much done to eradicate in other townships.
In Banana City, an informal settlement upgrading project, there were two residents who were refusing to be relocated blocking the implementation of the project. The one resident was represented by the lawyer making it difficult to be reached. The other resident cited lack of water and toilet facilities in the site where they were to be move citing health hazards for her and the unborn baby.

14. Recommendations

Based on the observations made, the Committee recommends that the Minister should:

Ensure that provincial department adheres to Supply Chain Management to prevent irregular expenditure.
Instruct the Department of Human Settlements to step in and assist by implementing projects for the benefit of the communities that were meant to benefit.
Ensure that national, province and local municipalities implement and handle projects effectively. This should be done by improving the planning and collaboration between national, provincial, and local governments to ensure timely delivery of housing projects and provision of essential services. Emphasize on adopting the District Development Model to align plans and budgets effectively.
Ensure that Quality Assurance Inspectors who are tasked to monitor quality and assessment of housing projects in the province and in municipalities are being delivered to beneficiaries as they deserve best quality. Capacity Building for Contractors as local contractors may lack the skills or resources for large-scale projects. Offer training and mentorship programs to local contractors. Pair inexperienced contractors with seasoned ones to ensure quality and on-time delivery while supporting local empowerment initiatives.
Institute consequence management against officials in the quality assurance unit as there is clear evidence of dereliction of duty on their part. Leverage technology for monitoring as real-time project tracking can help identify bottlenecks early. Use project management software and GIS mapping to monitor progress, track budgets, and identify delays. This can also improve communication between stakeholders.
Ensure that the province facilitate information sharing sessions across municipalities, especially at project planning phase, to enable sharing of best practices and the delivery of standard quality houses. Ensure consistent quality of the houses and that KwaDukuza housing project should be a benchmark as the best practise.
Enhance monitoring and evaluation of contractors to ensure timely project completion within budget. This includes balancing empowerment initiatives with the need for quality housing delivery. Relook into the alleged construction of “three houses per month” instruction to contractors to understand the basis for such.
Fast-tract the eradication of asbestos roofs and this should be prioritized as it was health implications to the homeowners or residents.
Ensure that the national Department of Human Settlements and the eThekwini Metro urgently convene an intergovernmental committee within 21 days to deal with the challenges of Banana City Project and to ensure that litigation is avoided at all costs.
Fast-track the discussions with the residents who were refusing to be relocated blocking the implementation of the project. Also assist with the installation of water pipes and toilets to minimize risk of health complications to the residents. Strengthen Community Engagement as Projects often face resistance or delays when communities feel excluded. Establish regular community forums to gather input, address grievances, and foster a sense of ownership. This can help mitigate disruptions from local business forums and ensure alignment with the needs of beneficiaries.
Streamline processes to make the Emergency Housing Fund more flexible and responsive during disasters. This includes allowing municipalities to directly address minor disasters to expedite relief efforts.
Prioritize the delivery of essential services like water and sanitation in all housing projects. Effective multisector planning is necessary to connect projects to bulk services and prevent delays.
Collaborate with law enforcement to tackle disruptions caused by business forums demanding project shares, which lead to significant delays and project halts.
Enhance Accountability Mechanisms as poor project oversight often leads to delays and substandard work. Introduce performance-based contracts with clear penalties for non-compliance. Regular audits and public reporting can also help maintain transparency and accountability.
Streamline bureaucratic processes as delays in fund disbursement and approvals can stall projects. Digitise and centralise application and approval processes. Set clear timelines for each stage and hold officials accountable for delays.
Focus on disaster-resilient infrastructure as KwaZulu-Natal is prone to flooding and other natural disasters. Design and build housing to withstand local environmental challenges. Integrate climate-resilient materials and technologies to reduce long-term costs and protect vulnerable communities.
Prioritise quick wins to build momentum as visible progress can boost public confidence. Identify and fast-track projects that can be completed quickly, especially those requiring minimal additional resources or intervention.

15. Conclusion

It is the submission of the Committee that the implementation of these recommendations would positively respond to the objectives of the KwaZulu-Natal Department of Human Settlements, the National Development Plan and the lives of the people. To ensure the realisation of these objectives at specified timeframes, the Committee will conduct its oversight on specified intervals. The implementation of these recommendations will assist in expediting housing delivery, improving living conditions and upholding the rights of beneficiaries in the province. In addition, Parliament should track the implementation of these recommendations by the Executive.

Report to be considered.

Documents