Report of the Portfolio Committee on Housing on oversight visit to Gauteng Province, dated 28 January 2005:
The Portfolio Committee on Housing, having undertaken an oversight visit to Gauteng Province on 11-15 October 2004, reports as follows:
1. INTRODUCTION
1.1 Members of the delegation, were as follows:
Ms Z Kota (Chairperson) ANC
Ms BN Dambuza ANC
Mr TS Dodovu ANC
Mr DC Mabena ANC
Mr GD Schneemann ANC
Mr SJ Masango DA
Mr AC Steyn DA
Mr BW Dlamini IFP
Rev MS Khumalo ACDP
Staff:
Ms M Ntuli - Committee Secretary
Ms E Scholtz - Secretary to Chairperson
2. PURPOSE OF THE VISIT TO GAUTENG PROVINCE
The main purpose of the visit was for the Portfolio Committee to exercise its oversight role by assessing the provision of basic infrastructure, assessing the quality of housing units provided, assessing the pace of housing delivery, interacting with the Gauteng Department of Housing. It was also to monitor the involvement of women in the housing delivery process as well as attention given to the emerging contractors. The committee also looked at challenges experienced by the provincial and local governments in the housing delivery process.
2.1 NATIONAL DEPARTMENT OF HOUSING Through this visit, the committee wanted an opportunity to receive MTEF and Annual Report from the National Department of Housing and also to pay a courtesy visit to the housing institutions.
DAY 1
The delegation visited the National Department of Housing in Pretoria, where it received a presentation on the Annual Report 2003/4, MTEF and progress made by the Department. The presentation also dealt with the activities/programmes of the Department of Housing.
The delegation received apologies on behalf of the Minister of Housing, Dr LN Sisulu as well as Ms MZ Nxumalo, Director General, who joined the briefing later.
Before the presentation by the Department of Housing, the Chairperson of the Portfolio Committee on Housing expressed dissatisfaction at not having received prior notification of the apology of the Minister and the Director General, but did understand the fact that there was a visiting delegation from Iran which was hosted by the Department of Housing.
PARTICIPANTS FROM THE DEPARTMENT OF HOUSING
Ms MZ Nxumalo Director General
Mr L van der Walt Director: National Housing Policy & Strategy
Mr P Chauke Acting Chief Director: Housing Sector
Mr A Osman Chief Director: Office of Disclosure
Mr J Wallis Chief Director: Programme Management
Mr T Chiloane Chief Director: Communication
Mr DJ Barclay Chief Director: Corporate Services
Mr M Dlabantu Chief Financial Officer
Mr Dlabantu led the delegation and gave the Committee an overview of the briefing. Members of the delegation from the Department of Housing gave a briefing to the Committee on the activities of the Department of Housing which are organised in the following seven (7) programmes:
Programme 1: Administration by Mr Barclay
Programme 2: Housing Policy Planning & Research by Mr vd Walt
Programme 3: Housing Programme Management by Mr Wallis
Programme 4: Housing Sector Performance by Mr Chauke
Programme 5: Communication by Mr Chiloane
Programme 6: Housing Development Funding by Mr Dlabantu
Programme 7: Housing Equity by Mr Osman
The Chairperson of the Portfolio Committee on Housing requested the Department of Housing to try and make the housing information brochures available in their offices in Parliament, so as to distribute them to the public. She also commended the Department of Housing for the renovations of their offices.
DAY 2
The delegation met with the Gauteng MEC for Housing, Ms N Mokonyane at the Parktonian Hotel, where they had a briefing on the work and activities of the Gauteng Department of Housing. She said she was in the process of launching a hotline, which will make people understand what their rights were. She also told the delegation that Public Works, together with the Department of Housing have put together an anti-corruption team in the province.
The MEC cited the following challenges:
There is high concentration of informal settlements in the area such as Ekurhuleni and Mshayazafe.
The expansion of informal settlements due to migrant labourers who do not go back home after retiring.
Many places were still using the bucket system especially in Ekurhuleni Metro.
Converting hostels into rental housing.
In terms of land ownership, prime land is still owned by private sector and private individuals.
After the MEC’s briefing, Mr Martin Maphisa gave the delegation a presentation on the Annual Report as well as the budget of the Department of Housing.
The Chairperson thanked the Department of Housing for their presentation. She stressed that the delegation was not there in order to spy on but rather to monitor and assist the Department of Housing and also to look at the critical role played by other stakeholders.
The delegation thereafter visited the Gauteng Legislature where they met with the Standing Committee on Housing. Mr G Tsotetsi, Chairperson of the Select Committee, welcomed the delegation. Mr M Molekwa briefed the delegation on their activities as the Gauteng Department of Housing.
Comments by the delegation:
There was a need for the Standing Committee on Housing to work with other existing institutions such as, Human Sciences Research Council, NGOs and CBOs.
The Standing Committee must monitor the province in its implementation of the strategic plan.
The Standing Committee must interact with all beneficiaries.
It must interact with all housing stakeholders.
The Delegation Left For The Regional Council Offices for a Briefing on Alexandra Project
The delegation was then given a presentation on Alexandra Renewal Project at the Regional Office. The MEC told the delegation that Alexandra Project has been in existence for a number of years. The different categories of the community were well represented in Alexandra, namely the young and energetic, as well as the old and experienced. It was agreed that there should be one political head in Alexandra, and that is the MEC for Housing.
But it was clear that departments which are supposed to work hand in hand in with the Housing Department in building this community, were not taking their responsibilities seriously. That there was no funding of the project from national government. There is a political steering committee which consists of all parties, called the Local Development Forum (LDF). The deadline for this project is 2009.
The delegation then visited the following projects:
Alexandra Project
M1 & M2 Men’s Hostel upgrade project
Pan Africa
Helen Joseph
Mandela Yard
At the M2 Men’s hostel, the delegation met a woman contractor on duty, Ms Melita Raseale, from Limpopo province. She shared one of her major challenges with the delegation as follows:
Late payments result in her sometimes having to stop working, as she cannot afford to pay the workers. In fact, workers continue to work without pay. This is demoralising the workers and it affects the quality of work.
The MEC agreed to take this matter up.
The delegation also visited an area where people were placed temporarily as their homes were being built.
Other major challenges in Alexandra are:
Some people were not paying for services.
Different Ministers come in to see the Alexandra Renewal Project but do not leave any funds to support the project.
Upgrading of the area is very slow due to none participation (integration) of other departments such as the Department of Health, Department of Education, Department of Sports, etc.
The rate of HIV/AIDS is extremely high in the area.
Lack of funding from National Treasury.
In the evening, the committee was invited to the launch of Consumer Education Programme done by the Gauteng Department in joint venture with Nedbank.
DAY 3 – VISIT TO BEKKERSDAL
1. Introduction
During the third day of the provincial visit, the delegation had a briefing by the Mayor of Westonaria Local Municipality, Ms Maserame Khumalo. Also present were members of the Department of Housing in Gauteng, as well as local Councillors from Westonaria Local Municipality.
The Mayor’s briefing was followed by a presentation on the Bekkersdal Urban Renewal Programme by the Gauteng Department of Housing.
1.1 In her welcoming address, the Mayor thanked the delegation for coming and for the interest shown in the Bekkersdal Renewal Programme. The Mayor gave a brief background on how the Bekkersdal informal settlements started and how far they have proceeded with the project. She then stated that overall, the project is funded by the Gauteng Department of Housing.
1.2 She also apologised on behalf of the Gauteng MEC for Housing who was not able to attend the briefing and the presentation as she had other prior commitments.
PARTICIPANTS
Also present, were members of the Bekkersdal Development Forum, Community Liaison Officers (CLOs), staff from the Gauteng Department of Housing, as well as members of the Bekkersdal community.
The Mayor cited the following challenges, which are experienced in the Project: The project is still at the planning stage or advocacy stage.
Disputes sometimes occur amongst building contractors over the project, with some displaying characteristics of wanting to own the project.
There is a general lack of communication amongst the stakeholders in the project.
Generally there is slow progress experienced in the development of the project.
There are community forums in place, but the project is still not running smoothly.
The project has no private sector funding.
In general, the planning stage of the project took longer than was anticipated.
There is a general lack of skills within the community.
The community wants to tender for projects but have no skills needed for the project.
Land is not safe to build because of dolomite areas.
Some areas had electricity supply but were stripped by the residents because they needed it but had no funds to pay for it.
Overall, 60% of the community is unemployed.
Approximately 8 000 people are still listed with the Department of Housing
The bucket system is still in place.
Comments by the Committee: PC on Housing
The Committee received a report on the plan of relocating so many people (60 000 to 80 000 people) and the work that had gone into identifying suitable land before embarking on the project.
The Committee was satisfied with the wide consultation held with other sister departments such as the Department of Provincial & Local Government (DPLG).
The Gauteng Department of Housing then gave the delegation a presentation on the Bekkersdal Renewal Project. In their presentation, they stressed the good working relationship between the Department of Housing and the Bekkersdal Development Forum. All three (3) spheres of government worked together to promote the development in the area. Bekkersdal is divided into two sections, namely, Bekkersdal formal area and Bekkersdal informal area.
After lunch, the delegation traveled to Bekkersdal to do site visits such as, the taxi rank, transit camp an d the toilet programme. There is a clinic, Police Station and a high school (Letlake High School), and also some emerging services in the CBD area.
Thereafter, the delegation attended the official opening ceremony of the Bekkersdal Information Hub by the Gauteng MEC for Housing, Ms N Mokonyane. Also present were, the Mayor of the Westonaria Local Municipality, Ms M Khumalo, members of the Bekkersdal community, local Councillors and a Preacher, Mr Z Seyabi. The Chairperson of the Portfolio Committee on Housing was asked to say a word or two.
The Hub is part of the offerings that come with the Bekkersdal Renewal Project (BRP). It is based on the realisation that the general well being of the residents is vital in elevating the quality of life within the target community. The BRP also puts much emphasis on investing in the human capital of the local community by opening access to information.
In line with this, the Information Hub is a central point in Bekkersdal where information can be disseminated and accessed by the community as well as the key stakeholders in the project. Records of the BRP progress and activities will be kept at the centre. It will also serve as an information office for all project team members.
In her speech, the Gauteng MEC, Ms N Mokonyane thanked all stakeholders for their contribution to the success of the project. She encouraged the community of Bekkersdal to use the Information Centre and to look after it, as it will make their community develop even further.
Day 4
The delegation visited Ekurhuleni Metropolitan Municipality where they were met by the Mayor, Mr Duma Nkosi, Local Councillors and staff from the Municipality. The Mayor stated that so far, Ekurhuleni Metropolitan Municipality is the fastest growing municipality in South Africa. It is made of nine (9) towns, which were brought together under one municipal authority.
Mr Neville Chainee, Director of Housing, made a presentation on their housing activities. After the presentation, the delegation asked the following questions:
Are physically challenged individuals being catered for in the housing units?
Do people who buy the housing units get loans from the bank?
Response by the Mayor
The physically challenged are catered for in the housing units, with about 49 units having been provided specifically for this purpose.
They hope to have eradicated the informal settlements by 2014.
In most cases, the housing units are overcrowded. The sewerage system runs into the roads because about six (6) families live together.
Rental stock is a serious issue. People are converting offices into flats.
They have approached the National Department of Housing for insitu upgrading. As money owned in some instances is less than the subsidy.
The Mayor concluded by asking the delegation for their support.
The delegation thereafter visited the following social housing projects:
Pharoe Park - 440 housing units
Germiston Phase 2 - 558 housing units
Within the Johannesburg Metro, the committee visited the following projects:
Troyville - 120 housing units
Bricksfield - 1 400 housing units (under construction)
The delegation also visited the offices of the Cope Housing Association and the Johannesburg Housing Company and received a presentation about their social housing activities in the Gauteng province.
DAY 4&5
The delegation visited the following housing institutions in their offices. This was a courtesy visit aimed at familiarising the committee with the premises of the housing institutions and also to extend to them an invitation for the public hearings to be held on 2-3 November 2004, in Parliament:
National Urban Renewal Council Housing Association (NURCHA): staff compliment of 43
National Housing Finance Corporation (NHFC): staff compliment
of 74
Social Housing Foundation (SHF): staff compliment of 25
The Johannesburg Housing Company
Servcon Solutions: staff compliment of 124
Thubelisha Homes: staff compliment of 52
National Home Builders’ Registration Council (NHBRC): staff compliment of 197 (nationally).
The delegation completed the visit at 14h00 on Friday, 15 October 2004.
THE COMMITTEE RECOMMENDS THE FOLLOWING:
The committee requests that the National Department of Housing should provide committee members and other Members of Parliament information brochures on housing in order to disseminate such information to their respective constituencies.
That the issue of land release should be attended to as a matter of urgency to expedite the housing delivery. The matter will be referred to the National Department of Housing.
The IDP should be implemented by all relevant stakeholders. The Alexandra Project points to the failure of this initiative as other departments do not take their roles seriously. The matter should be raised in parliament and referred to the Inter-Ministerial Committee.
The funding protocol in both Bekkersdal and Alexandra, needs to be put in place as a matter of urgency, for better co-ordination and implementation by all spheres of government. Matter to be raised with the National Department of Housing.
Payment of emerging contractors is a problem in Alexandra. It needs to be taken up with the Gauteng Housing Department.
The Bekkersdal Project needs a follow-up visit as there were many unanswered questions. There was no visible implementation of the plan on the ground. Beneficiaries were still dissatisfied with the process in Bekkersdal. This matter will be referred to the Gauteng MEC for Housing.
Employment of local people must be central in our housing plan as we want to ensure transfer of skills to the community.
We saw development of housing in Bekkersdal as a continuity of a poverty trap as there was no plan for local economic development and social amenities as required by the new plan of housing.
The social housing in Gauteng is developing well, but the difficulty is high rental and also how beneficiaries are allocated to these houses.
Our committee wanted further interaction with COPE as this was a new entity in our midst. COPE would be called before the Portfolio Committee on Housing in due course.