COMMENT:
The performance remains well below target and is unsatisfactory. The traditionally bad December and January period for payments has also affected the figures. The performance is affected both by income levels as well as ill discipline. Legal action is being taken against non-payers but has to be balanced against action against unco-operatives given the volumes.

The following areas have been "normalised" or at least improved to a status in keeping with

the norm for Servcon areas or have been removed as they are relatively insignificant from a

Servcon perspective.

Zola

Kanana

A proposal has been made to Government to consider an ad hoc decision by granting

relocation in situ subsidies for these cases. The subsidy would resolve the bulk of the cases,

where balances remain, affordability would be improved and most people could make

arrangements to pay off the balance of the debt.

Servcon is in contact with the various community structures. These structures are influential

and have affected Servcon's ability to make significant progress in the area.

A negotiated settlement involving the Department of Housing has not been implemented. The

group leaders have split up and the renegade groups are telling clients not to co-operate.

Evictions are to proceed.

Servcon is experiencing major problems in the area. Evictions fail because of interference

from so called community leaders. Criminal charges for accepting money intended

for the banks are to be brought.

Community structures and leadership change regularly. There is interference with Servcon

and the eviction process. We are working with the Ward Councillors and a "Community Development Forum".

Local councils involvement has made Servcon's work easier. Clients who have not cooperated

will now be evicted as negotiations have been finalised and agreements reached.

Eviction orders have been obtained. A small number, say 5, will be carried out which hopefully

will encourage co-operation.

There are problems being experienced with a group who call themselves Voluntary Steering Committee. This committee interferes with r/sizing and tells clients not to relocate to small

houses. It is hoped that evictions will make clients cooperate.

Billiton's offer to pay for alternative accommodation does not seem to be adequate to most

clients. One of the banks sold these properties at R1000.00 each. All clients in this area now

want to buy for R1000.00 irrespective of the Billiton offer.

No progress. Recent negotiation to get rightsizing stock built in the area failed because the

community leaders want bigger structures out of the R16000.00. Evictions are being planned

for the area.

Up until now approximately 100 out of our 231 clients have responded and signed agreements

in terms of the settlement negotiated between the community and the Bank last year. Legal

action is now in progress against the balance, however no evictions have been carried out of

late due to a temporary inability on the part of polices services to provide support to the sheriff.

The success or otherwise of evictions will be the test of progress towards normality.

Situation appears to be normalising although the question of historic failed evictions, where the clients are still in occupation, has not been resolved. There have also been no evictions of late

due to the temporary inability of the police services to provided support to the sheriff.

Following the previous rejection of a proposal, a further submission has been made to the Department of Housing for them to reconsider this proposal involving in situ subsidies, given

the special circumstances in this matter.

Still no evidence of any change in attitudes with minimal co-operation and performance.

Evictions that were planned were held back following an action instituted by an attorney acting

for the clients, that was based on a recent Eastern Cape Court ruling. Our attorney is handling

the matter and we are confident that shortly we will obtain a Court ruling in our favour that will enable us to proceed.

The majority of clients in the area have responded, however we are still faced with a minority dissident group. The major problem has been one of failed evictions, however where effective

action has taken place against trespassers, this has resulted in our achieving some belated co-operation. Some recent problems have been experienced in the process of taking action against

those that have re-occupied properties, but due to the active involvement of our attorney and

the Justice Department, this is in the process of being resolved.

We have recently had an increase in communication and interaction with Metropolitan

Municipal and political leadership and with the structures in certain sections within Thabong. Members of the leadership have also been taken to Kanana to view a rightsizing project,

which was seen in a favourable light. Slow progress is being made and discussions are now

taking place with Thubelisha, with regard to the possibility of a pilot project.

Following on an agreement between all roleplayers at the end of last year a mutually

acceptable assessor was agreed to by all parties for a pilot property assessment and

inspection project to be undertaken. Numerous delays have followed in having the local

structure agree on which properties should be assessed and for them to allow the task to be undertaken. Following the intervention of the local MP, Ms. Patricia Coetzee-Kasper, this

is due to be finalised by 11 April, after which the assessments will be done. It is hoped that

the report will form the basis of a way forward.

Recycling

The Project is still operating even though there is an accommodation problem. Still waiting

for a response from Boksburg Service centre for the application we have made for a site.

Sewing & Knitting

Progress is still slow due to unavailability of machines. Got an order to do running vests for

Puma Athletic Club.

AIDS

In collaboration with the AIDS consortium, we have been funded to the tune of 100 000 US

dollars over a period of 18 months. This programme will allow us to train Servcon clients in HIV/AIDS, counselling and home-based care in other areas as well (Sebokeng, Lakeside, Embalenhle, Buhle Park and Thokoza). Trainees will be expected to render a service to the

broader community and will be given allowance ranging from R600 to R800 depending on the number of trainees. We are also exploring possible solutions to the problem of parentless households.

Computer Training

Two members have been trained as trainers. Efforts are being made to ensure that the computer centre is up and running.

We will be intensifying our efforts this year to embark on community development/job creation projects in the Ekurhuleni Metro. This will be done in partnership with Metro Council, Banking Council, Thubelisha, Ekurhuleni Business Initiative and other stakeholders.

Crèche: Standardbank has agreed to lease house no Erf 7441 at R50 per month to be used as a crèche by three our clients. There are 9 kids registered at the crèche’.

Agriculture: Still waiting for an application made to Food and Trees for Africa for utilisation

of the farm Rietkuil.

Exploring ways and means to seek funding for the proposal from Motherwell to establish a

fund for loans and guarantees to enable our clients to establish small businesses.

We are able to obtain eviction orders in all the provinces. However, in Eastern Cape, the applications for eviction orders have to comply with Prevention of Illegal Eviction from

Unlawful Occupation of the Land Act No. 19. Attorneys in Eastern Cape are able to comply

with this ACT and eviction orders are obtainable.

Sheriffs are able to carry out evictions in most areas with the support of SAPS. However, in

some areas, Sheriffs are unable to perform their duties because of lack of support from SAPS. Khayelitsha is an example of an area where support from SAPS has been looking and very few evictions where carried out for the past 12 months.

While most Sheriffs perform their duties as expected by the Courts, there are Sheriffs who fail

to carry out their duties as expected. These Sheriffs are very unco-operative and have been

reported to the Board of Sheriffs by attorneys and Servcon. They are from Soweto West and Soshanguve area. We are endeavouring to get this matter resolved by either the Board of

Sheriffs or the Department of Justice.

It is still very difficult to obtain successful prosecutions where people move back into

properties after evictions. An independent investigator has been appointed to assist the Police

to compile dockets but this is an onerous process.

The relationship has been greatly enhanced and we are working in very close and productive cooperation. 1367 Families have been relocated in terms of the rightsizing programme during the year.

We are still waiting for the Department of Housing to react to proposals submitted in 2001 to introduce more flexibility into the Servcon programme with respect to: