Report of the Portfolio Committee on Human Settlements on an oversight visit to the Eastern Cape Province to oversee the state of the province on human settlement delivery acceleration, dated 4 November 2009

 

Table of Contents

1      Background. 4

2      The Delegation. 4

3      Briefing by the Provincial Department 5

3.1        Overview 2008/09. 6

3.2        Informal settlements. 7

3.3        Disasters. 7

3.4        Turnaround strategy. 7

3.5        Beneficiary list 7

3.6        Private Sector Engagement 8

3.7        Procurement 8

3.8        Deliberations. 8

4      Buffalo City Municipality. 10

4.1        Site visit: Duncan Village Project 10

4.2        Site visit: Ducats (rectification programme. 11

4.3        Response from Department 11

4.4        Responses from the delegation. 11

4.5        Site visit: Social Housing-Emerald Sky. 12

4.6        Site visit: Reeston Project (East London) 12

5      Nelson Mandela Metropolitan Municipality. 13

6      Kouga Municipality in Jeffrey’s Bay. 14

6.1        Challenges. 15

6.2        Deliberations. 15

6.3        Responses by the municipality. 15

6.4        Site visit: Kuyga Phase 2 (1170) rectification programmeme. 15

6.5        Challenges. 16

6.6        Intervention/Solution. 16

6.7        Site visit: Walmer 17

6.8        Site visit: Well Estate. 17

7      Nelson Mandela Municipality. 17

7.1        Site visit: Ramaphoza project in Motherwell 17

7.2        Site visit: Kamvelihle Housing Project 18

7.3        Site visit: Motherwell - Matthew Goniwe. 18

7.4        Site visit: Veeplaas in- situ upgrading. 19

7.5        Site visit: Chetty River Ext. 3, 4 & 5. 20

7.6        Site visit: Zanemvula Pilot Project 20

7.7        Site visit: Uitenhage, KwaNobuhle. 20

8      Fisher’s  Corner 21

9      Alexandria Municipality. 22

9.1        Site visit: Kenton on Sea. 24

9.2        Site visit: Thornhill Project (New project) 24

10         Chris Hani District: 24

10.1      Site visit: Sterkstroom.. 24

10.2      Site visit: Molteno in Nkwankca Municipality (Kwa Nomonde) 25

10.3      Site visit: Elliot -Takalani Location. 25

10.4      Site Visit: Illinge (405) 26

10.5      Site visit: Ugie, Cala and Maclear Projects. 27

11         Matatiele Municipality. 27

11.1      Site visit: Njongweville Ext. 30

11.2      Site visit: North End Ext: 30

11.3      Site visit: Harry Gwala Ext: 30

11.4      Site visit: Mt Frere. 31

11.5      Site visit: Mt Ayliff 32

11.6      Site visit: Flagstaff 32

12         Committee observations: 33

 

1           Background

 

In 2004 Cabinet took a decision to shift from providing just houses and adopted a comprehensive integrated and sustainable Human Settlements development strategy. The Cabinet further more evoked Section 100 of the Constitution on April 2008 to intervene in the Eastern Cape Province by assisting in the administration of the Department of Housing as a result of an expenditure decline which resulted in under expenditure.

 

The Portfolio Committee on Human Settlement undertook an oversight visit to the Eastern Cape from 4 to 10 October 2009 to execute its Constitutional mandate. The purpose of the visit was to oversee the state of the province on human settlement delivery acceleration as well as to conduct on-site visits. The following focal areas formed part of the agenda:

 

Ř       Provincial performance to meet delivery targets set and challenges for 2008/09 and if  there has been any value for money;

Ř       Progress made by Section 100 team which was appointed by the former Minister Dr L Sisulu to run the administration of the Provincial Housing Department;

Ř       Progress report around the disaster affected areas in the Province with special attention to the areas that were affected from 2000 to 2008;

Ř       Progress and plans made to unblock the blocked projects;

Ř       Progress and plans made on the rectification programmes; 

Ř       Progress in implementation of rural housing plan and targets;

Ř       Progress in upgrading of informal settlements including Community Residential Unit (CRU’s); and

Ř       Plans and service delivery targets for 2009/10.

 

2           The Delegation

 

The delegation comprised the following: Ms BN Dambuza (ANC), leader of the delegation; Mr MR Mdakane (ANC); Ms TMA Gasebonwe (ANC); Ms GM Borman (ANC); Mr J Matshoba (ANC); Ms NA Mnisi (ANC) ; Mr AM Figlan (DA) ; Mr AC Steyn (DA) and Mr T Botha (COPE). The delegation was accompanied by the National Intervention Team, viz: T Mathibeli; D Awogu; C Sehlapflo; LS Rampedi; R Manphaga. The delegation was also accompanied by the following staff members: Ms K Pasiya (Committee Secretary); Ms B Madikane (Committee Secretary); Mr M Erasmus (Committee Assistant) and Ms K Ndyondya (Parliamentary Communication Services).            

3            Briefing by the Provincial Department

 

The Department led by the MEC, Ms Nombulelo Mabandla welcomed the delegation. She introduced the Provincial officials as well as the National Intervention Team that had been deployed to the Province.  She handed over to the Chairperson of the Portfolio Committee on Human Settlements Hon BN Dambuza. The Chairperson thanked the MEC for the warm welcome received; she introduced the delegation team and further outlined the purpose of the visit as well as the expected outcome.

 

The National Department was also represented and led by the Chief Financial Officer, Mr. M Dlabantu.

 

The MEC in her opening remarks informed the delegation that she had joined the Department after the 2009 National General Elections, and found the National Intervention Team on the ground addressing service delivery challenges as per the Cabinet decision. She stated that they had begun to work as a team of government in September 2009. She informed the delegation that the national intervention support team was there as an implementing arm, to transfer skills as well as to prepare the Provincial sustainability plan. She also indicated that as the Province they welcomed and appreciated the support given by the Portfolio Committee through its oversight, as this would assist them to strengthen and enhance service delivery programmes. The MEC further stated that due to the slow pace and poor quality production in certain areas she had observed, she had decided to take over the developer status from the struggling municipalities.

 

She apologised to the delegation as she would not be able to be part of the team to all areas to be visited due to the Provincial week that took place at the same time.  However, she would join the delegation on the last leg of the visit in Alfred Nzo District.

 

The Head of Department (HOD), Ms N Sishuba tabled the report on the state of the Province around the service delivery context. She reported that in 2008/09 the Provincial Department split from Local Government and became a stand alone Department which tabled its own first reports. The Department has its own staff complement and has secured office space. She stated that at the beginning of the year they appointed 197 employees of whom 85% constitutes project managers and quantity surveyors. This initiative relates to a change management strategy which interlinks the relationship between delivery and human resources. The Department started with a clean audit report and achieved an unqualified report.  She informed the delegation that the Department had set a target to build 15 000 houses by 31 March 2009 and had to spend the allocated R1, 2 billion budget. 

 

The Department reported that the Section 100 team which consisted of officials from the National Department as well as some Provincial officials started in 2008 to assist the Province in challenges encountered in the administration of the Department as well as housing delivery.  In response to the matter, the Department agreed to establish a forum to be chaired by the MEC to:

1. Oversee provincial turnaround strategy;

2. Verify, analyze and approve flagship projects;

3. Review projects implementation plans and existing contracts in order to upscale delivery;

4. Deploy technical skills required; and

5. Improve monitoring and evaluation to deal with issues of quality and accelerated delivery.

3.1          Overview 2008/09

The Department reported that even though it has set a target to complete 15 000 houses by March 2009, it has managed to complete 18 000 houses of which some houses were at various stages of completion. The Department’s expenditure increased from R379 million in 2007/08 to R1, 04 billion in 2008/09. The MEC further informed the delegation that the Department’s aim is to:

Ř       Develop a comprehensive informal settlement upgrading plan

Ř       Review and roll-out an emerging contractor development policy

Ř       Proactively plan projects

Ř       Streamline internal processes

Ř       Ensure stakeholder mobilisation and engagement to leverage resources for maximum delivery

 

There were 41 blocked projects of which 21 were being unblocked. It was reported that 1077 units were targeted for rural housing development. With regard to the Community Residential Units Programme, the Department confirmed that they have not done well. The Department was busy with feasibility studies to that effect and the set target was 121 units for the current financial year.

 

 

3.2          Informal settlements

The Province reported that according to Census 2000 they have 205 informal settlements. The Province has an estimated backlog of 117 719 houses with funding requirement estimates of R13, 554 Billion. It has been reported that there were 6 active informal settlements upgrading pilot projects with units totaling 69 200. The following are the projects and the reported challenges experienced with the completion of those projects:

Ř       Zanemvula: There is a lack of cooperation by the social cluster Departments. The Department was trying to bring all the Departments on board.

Ř       Duncan Village: There was a challenge with the procurement of services and bulk infrastructure provision.

Ř       Elliotdale rural housing: There is a lack of capacity within the Municipality, reluctance of the established contractors to take up the development due to lack of water and topography.

Ř       Ngangelizwe: Land invasion resulted in project delays.

Ř       Siyanda: The development of the project was unable to start due to a land claim challenge.

Ř       Thornhill: In phase 1a, 500 houses were to be constructed.

Ř       Makana: 5000 houses were to be constructed but due to scarcity of water the project was delayed. It was reported that National Treasury has agreed to provide assistance.

3.3          Disasters

The Department reported that the plan to respond to emergency housing for the entire Province was in place. The Department further stated that out of 2619 purchased temporary shelters, some were awaiting delivery. 8000 shelters were on adjudication for purchase depending on budget availability. The shelters would also be utilized as temporary units for rectification purposes as well as for people in distress. The Department reported that the Division of Revenue Act provides funding reassigned for disaster management.

3.4          Turnaround strategy

The Department plans to verify a panel of contractors who can respond promptly to disasters.  

3.5          Beneficiary list

The Department reported that challenges have been encountered in the coordination of and administering the beneficiary list, which is often manipulated. In order to respond to the matter, the Department has embarked on the process of establishing a Social Facilitation Unit to deal specifically with beneficiary challenges. The MEC has not been approving any project without a consolidated and verified beneficiary list. 

 

Some of the challenges raised included the following:

Ř       Selling of RDP houses at a lower cost was cited as the most critical challenge especially in Nelson Mandela Metro. 

It has also been noted that there is a challenge with Section 10A of the Housing Act which reads as follows:  notwithstanding any provisions to the contrary in any other law, it shall be a condition of every housing subsidy, as defined in the Code, granted to a natural person terms of any national housing programmeme for the construction or purchase of a dwelling or serviced site, that such person shall not sell or otherwise alienate his or her dwelling site within a period of eight years from the date on which the property was acquired by that person unless the dwelling or site has first been offered to the relevant provincial Housing Department.  

Ř       To address the matter of child-headed families, the Province indicated that a programmeme to deal with vulnerable groups was in place including the implementation of the Law of Succession.

Ř       Delays from the Deeds Office on issuing Title Deeds.

3.6          Private Sector Engagement

The Province has begun interacting with the Private sector on issues of informal settlement upgrading. 

3.7          Procurement

To address the matters of red tape when applying the procurement policy, the Department intends to review such policy in order to shorten the procurement period which has to be linked to price and determined by the subsidy quantum. Furthermore, competence and time would be the main determinants for efficiency.  At this stage the procurement policy proposal has been presented to the MEC for consideration. 

 

The Department reported that with regard to the Housing Development Agency (HDA) mandate, the first meeting has been held to clarify its role and it was agreed that the relationship between the Department and the (HDA) would be defined by the business plan. 

 

3.8          Deliberations

The delegation welcomed the presentation made by the Department. The delegation noted and raised the following:

 

       a)            Based on the issues raised in the presentation by the Department, as well as from the observations contained in the previous oversight reports of the Parliamentary Committees, similar challenges continue to be encountered. Therefore an extra effort was required to overcome the challenges for the benefit of the citizens from all angles. It was stated that proper planning was very crucial for project management. Therefore intergovernmental relations should be promoted and enhanced in order to adhere to acceptable norms and standards of human settlements service delivery.

       b)            It was stressed that the monitoring and evaluation of projects at early stages, phase by phase was imperative to detect defects earlier.

       c)            Beneficiary management was raised as a very crucial matter as there were houses built and left unoccupied that resulted in vandalism and illegal occupation.

       d)            The Department was advised to strive and advocate for transparency in beneficiary management as this would eliminate suspicion and corruption practices.

       e)            The delegation reaffirmed unhappiness about the report on the performance of the National Home Builders Registration Council (NHBRC) because the quality of the houses was paramount.

         f)            The allocation of houses to backyard dwellers was also identified as a challenge as there is no clear guiding policy to this effect. 

       g)            It was also noted that if a project was done correctly at the outset, it would reduce the unnecessary cost of rectification and further save money for other projects. It was further suggested that payment processes should be determined by the quality production.

       h)            As much as some emerging contractors are likely to produce poor workmanship, there are instances where the established contractors take advantage and also produce poor workmanship. Therefore close monitoring has to be implemented in each and every project.

         i)            The capacity building programme should be continuously implemented for SMME or emerging contractors in order to promote entrepreneurship development.

         j)            The architectural structure of the houses does not consider the dignity and privacy of beneficiaries. Therefore the Department was advised to take serious considerations to that effect when approving housing plans. 

       k)            The housing subsidy does not have a budget for the maintenance of the houses. The most affected are the indigent beneficiaries whose houses are at risk of dilapidation.

         l)            It was noted that not everybody requires permanent accommodation but some seek temporary arrangements. Reference was also made to small towns, where the majority of workers resides in cities or well established towns, thus negatively impacting on their work performance.

     m)            The delegation was also interested to know about the issue of office space and the utilisation of consultants.

 

The Department informed the delegation that it was renting the space from the Department of Public Works. The Department was utilising consultancy for scarce skills only.

 

4           Buffalo City Municipality

4.1          Site visit: Duncan Village Project

The delegation visited the Duncan Village project and was informed that due to its development needs, this area was declared a Presidential Project in 1996. The settlement has a housing shortfall of 21 000 housing units. A programme to de-densify the area has been identified as follows:

Ř       Alleviate the unacceptable levels of overcrowding in some sections of the settlements;

Ř       Provide the necessary space required for the improvement of bulk infrastructure in the area;

Ř       Having achieved the above, construct decent human settlements for the residents of Duncan Village; and  

Ř       Land acquisition for the redevelopment initiative of Duncan Village.

 

Despite a range of good plans that have been developed for Duncan Village, very little has been achieved due to lack of bulk infrastructure in the areas identified for de-densification. In July 2008, the National Department of Housing applied to the National Treasury for an amount of R1, 56 billion to support the bulk infrastructural needs in the Eastern Cape with an estimated amount of R600 million towards Duncan Village. The funds were however not provided. It was reported that the Minister of Human of Settlements was in the process of approaching Cabinet for financial support in order to address these critical areas in the human settlements sector.  During the interaction it was agreed that there was a great need to attend to the following:

Ř     Upgrading of bulk infrastructure to augment water and sanitation provision in the Greenfield sites that have been earmarked for relocation of Duncan Village households residing in informal settlements.

Ř     The Housing Development Agency (HDA) has to play a vital role in the acquisition of land parcels in order to increase bulk infrastructure capacity for new development with the precinct and outside Duncan Village.

Ř     There was a need to increase human resources as well as to provide an operational budget for the Duncan Village Redevelopment Initiative Unit.

Ř     The Intergovernmental Relationship needed to be enforced so that the project should get off the ground as it is a National Priority Project. 

4.2          Site visit: Ducats (rectification programme)

The delegation visited Ducats informal settlements where residents informed the team about the state of their living conditions. There is an incomplete subsidy development project in the area, which was constructed in 2005 through the People’s Housing Process (PHP). The very same project requires rectification owing to its state. Residents appealed to the delegation to intervene as most of the roofs of their houses had been blown away as a result of poor quality construction. The issue of unavailability of adequate sanitation was raised strongly as the sewerage was not drained away. The sanitation system used posed a great challenge to children and presents health hazards. Houses were unplastered, roofs were leaking and there were no street lights. There were also no proper access roads.

 

Residents also raised a challenge with the houses being long distances away from all amenities, such as clinics and social services, thus providing difficulty in accessing medication and grants. It was indicated that there were no schools in the area, which also led to a high number of children being involved in car accidents whilst crossing the road to other schools. 

 

Residents displayed anger towards the officials as they blamed them for the backlog and delays in housing delivery. Residents raised a serious concern about the invisibility of their Ward Councilor.  

4.3          Response from the Department

Mr Nojoko from the Provincial Department of Housing stated that the project was started by the Amathole District Municipality in 2002. He confirmed that 6 contractors had been involved in the construction and rectification of the project.  But the slow pace of production by the contractors led to the project being blocked. He stated that the project was unblocked in 2007. Additional funding had been approved to further unblock the project during the current financial year (2009).  He indicated that 561 houses were completed, and 39 were under construction, whilst 25 were still to be built.

4.4          Responses from the delegation

The delegation stated that they sympathized with the challenges encountered by the citizens of Ducats but appeased the community and informed them that their challenges were not only peculiar to the Ducats community, but similar observations applied to most projects in the Province as a whole. The delegation reassured the residents that their complaints would be dealt with by the Provincial Department and the MEC. The delegation further reassured the residents that a follow-up visit to oversee progress would be made after 3 months. The delegation appealed to the MEC to negotiate for a periodical extension of mobile services e.g. social and health services.  

 

The MEC confirmed that the concerns of the Ducats residents have been forwarded to her office and she has been communicating with the civil society leader. She further informed the delegation that Ducats forms part of the approved rectification programme.  The MEC indicated that the Department would begin to address the community concerns within a period of two months. With regard to mobile services and school transport services, she reassured the community that she would consult her colleagues in the executive to assist as there was a dire need to address these matters.

 

The delegation was pleased by the response of the MEC who took an initiative and contacted the local government officials whilst the team was still on site to address the sanitation problem as a matter of urgency in a crčche that had put the lives of children at stake.

4.5          Site visit: Social Housing-Emerald Sky

The delegation visited Emerald Sky and learnt that the allocation of houses was dependent on the family income. The project accommodated people who earn between R2, 500-R7000. There were 480 units in total, and the project is managed by the Department of Housing. The project manager stated that rental collection was not a challenge. There was also a similar construction taking place to expand the current project. 

 

The delegation expressed appreciation and commended the Department for running such a successful project.

4.6          Site visit: Reeston Project (East London)

The delegation visited the Reeston project in East London, and was informed that the new housing project has been completed and handed over to the beneficiaries. The delegation learnt that the residents were grateful for the government efforts in providing them with a shelter; however they raised a challenge of being far from the social amenities and were paying exorbitant amounts for school transport. The people living in Reeston are people that used to live in Duncan Village’s informal settlements and have been moved to the new settlement.

 

5           Nelson Mandela Metropolitan Municipality

 

The delegation visited the Nelson Mandela Metropolitan Municipality and was welcomed by Councillor Biyana, Chairperson of the Standing Committee on Housing.

 

Mr S Maqhethuka, Executive Director reported that the Metro has a population of 1.1 million.  The Metro has built 289 000 houses and currently has a backlog of 87 000. Out of that 87 000 backlog, 49 000 are backyard dwellers, 115 informal settlements and 38 000 households. 

 

He informed the delegation that the Metro has the following challenges:

1.       Capacity of SMME contractors, which are identified as follows:

1.1   Contractors lack financial management, business and technical skills, quality control and site supervision.

1.2   Contractors lack project and contract management skills.

2.       Reluctance of suppliers to supply material due to payment delays.

3.       Verification of Title Deeds registration.

4.       Illegal occupation of houses.

5.       Beneficiary list management.

6.       Implementation plans of health and safety measures.

7.       Lack of inter and intra-departmental coordination and planning.

8.       Non-connection of internal services as the local government unit delays water connection.

9.       Signing of FUR’s was a challenge due to the vastness of the area.

10.   Surveyors’ rates were expensive, some charging up to R800 per unit.

 

The Executive Director reported that the sector was accountable and reported to the Standing Committee on a quarterly basis. The Municipality runs a capacity building programme in partnership with the Nelson Mandela University and NURCHA to provide capacity to SMMEs and Expanded Public Works programmes. It was indicated that there was a study conducted by SERVCON on the illegal occupants and the legal process was very slow. The Municipality raised unhappiness over the reluctance of the Province to release the SERVCON outcome reports. The Municipality urged the delegation to assist in accessing the SERVCON study outcomes so that they can be implemented. In response to payment delays, the Executive Director indicated that the Metro has developed a cession agreement. He indicated that to keep their projects running the municipality utilizes its revolving account and when payments are received from the province they transfer funds back to their account.

 

The Metro also undertakes an audit on backyard shacks, beneficiary management with a database that links to the national housing subsidy. Land has been identified as a critical challenge in the CBD area and the Metro opted to concentrate on Social Housing. To address the selling of RDP houses the Metro has conducted a forensic audit in that regard.

 

The Executive Director raised unhappiness about the tendency of the province of dumping funds towards the end of the financial year to the Municipality.

6           Kouga Municipality in Jeffrey’s Bay

 

The delegation was welcomed by the Chairperson of the Council. He explained to the committee that the district cannot function without the support of National Parliament. The Chairperson further proclaimed that Kouga municipality is the Jewel of the Eastern Cape Province. The municipality has to date spent R16 415 169.55 of the initial budget of R19 172 718.00. It was reported that the council conducts meetings with communities and enrolls them on their waiting list and gives them updates on the progress made on houses built. They encourage people to come forward for screening and verify if they qualify for a subsidy. Their turnaround time for when a claim is logged is 4 days. A progress report is handed to the Department of Housing when projects are finished. The municipality currently has new projects and the beneficiaries are already identified. They do the building of houses in three phases and start by preparing the land, installing services and constructing houses. The Department is responsible for the approval of beneficiaries. The district also focuses on formalizing informal settlements. The municipality has the benefit of access to land in the urban area. The municipality has completed 70 to 80% of the backlog on houses in the district.

 

It was reported that an in-situ upgrading project was approved in the Ocean View area to build 360 units. The awarded contractor was to construct services and top structures. There was a delay in the project because it had to wait for a Geotech investigation report, which resulted in the foundation design changing. It was also mentioned that the project is in-situ as there were some delays in the initial stages, but things are progressing. The 360 structures are partially completed. The construction of bulk services was to be finalized by the end of October 2009. The contractor will start with internal services and connect the houses to all services.

 

The municipality also explained that they have 4 foster care houses which were sponsored by Vodacom.

6.1          Challenges

The following challenges were identified:

 

Ř       Delays in the payment of contractors;

Ř       Unavailability of an electronic system to scan applications;

Ř       Fast growth in the development of the coastal area;

Ř       Difficulty in screening of beneficiaries;

Ř       There are blocked projects that require to be unblocked; and

Ř       Unavailability of funds.

6.2          Deliberations

The delegation enquired about the following:

 

Ř       Number of informal settlements the municipality has and projects in the pipe line. 

Ř       Number of blocked projects and the quality of the houses constructed.

Ř        Any challenges with the title deeds and whether the municipality has control over the mushrooming of informal settlements.

Ř       Clarity on the NHBRC contractor enrolment, and what support was given to the emerging contractors.

Ř       Where contractors are enrolled with NHBRC, and whether the emerging contractors were given the support.

Ř       Whether there are any service sites for future development.

6.3          Responses by the municipality

 

Ř       The officials from the municipality indicated that there are 9040 informal settlements scattered throughout the area with a total of 11440 people on the waiting list.

Ř       The municipality has earmarked 10 projects which are waiting verification. The municipality aims to access external funding to fund these projects as these were not budgeted for.

Ř       The municipality has 4 blocked projects and 1 serviced site. A signature is required to unblock the projects.

Ř       The quality of houses is satisfactory. 

Ř       The municipality controls the informal settlements by having a monitoring office in all 10 wards. It also assists SMMEs by giving them small projects and also encourages big contractors to involve emerging contractor.   

6.4          Site visit: Kuyga Phase 2 (1170) rectification programme

 

The project was approved on 8 March 2002 for 1170 subsidies at R16000 per subsidy for phase five, with a total value of the project at R41 020 278, 00. The appointed contractor completed all the houses and left the plumbing unconnected and the project was blocked.

 

Metro applied for additional funding to unblock the project. The funding agreement to unblock the project was finalized on the 28 November 2008.  The contractor for the plumbing connection was appointed in September 2009 and is currently busy with 568 houses. The anticipated completion date of the project is 15 February 2010. 

 

The project is under the rectification programme for houses with major structural defects but rectification will start after an assessment report has been approved. There were 1170 houses built and 876 transfers paid. There were 1159 services installed and 200 plumbing fittings completed to date.

 

The project budget allocation for bulk services was R3, 510,000. The Metro contributed R3, 500,000. The installation of a sewer pump station was R1, 846,600, excluding vat.  The reticulation and top structure was R41, 020, 278, excluding variance. The expenditure to date is R35, 951,841

6.5          Challenges

The following challenges were identified with the project:

Ř       11 houses are not connected to the main sewer, due to terrain or topography.

Ř       There are major structural defects on completed houses.

Ř       There was a duplication of approvals on the Housing Subsidy System (HSS).

Ř       15 beneficiaries do not want ceilings.

6.6          Intervention/Solution

The following intervention strategies were identified:

 

Ř       To source funding for a pump station for 11 beneficiaries who need assistance to be connected to the main sewer.

Ř       All houses with major cracks will be considered during the rectification programme.

Ř       The project to be reduced by 15 ceilings was approved.

 

6.7          Site visit: Walmer

In this project there are 2345 houses completed, 27 incomplete and 286 were on the landfill site.  There were also 3 new projects with approved layout plans.

6.8          Site visit: Well Estate

It was a new project which was approved on 03 July 2009 with 644 top structures. The Nelson Mandela Metro (NMM) is the developer for this project and it is an in-situ upgrading project. The municipality has applied to increase the project from 664 to 668 sites. The project was approved with a total budget of R59 817 001.58. The contractor, Wells JV was appointed by Metro on 03rd June 2009 and started on site on the 09th June 2009 as per the signed Joint Building Contract Committee (JBCC). There are 174 foundations, 142 wall plates, 125 roofs, 117 completed houses and 52 final unit reports by the National Home Builders Registration Council (NHBRC) to date. There are 565 identified beneficiaries and 334 approved on the housing subsidy. The anticipated completion date as per the Joint Building Contracts Committee is 30 June 2010. There are 551 houses outstanding and 668 service sites were being installed.

6.8.1          Challenges

The following challenges were identified:

 

Ř       Beneficiary identification and approvals.  This is an in – situ upgrading and some of the beneficiaries who are currently staying in shacks were not approved on the Housing Subsidy System (HSS) as they have benefited before.    

6.8.2          Interventions/Solutions

 

Metro officials are currently working closely with the Departmental officials to resolve the challenge of identification. But in future projects pre-screening will be done to avoid this challenge.

7           Nelson Mandela Municipality

7.1          Site visit: Ramaphoza project in Motherwell

Mr Gerber, the Contract Manager reported to the delegation that the original size of the project was to build 2308 houses. The project was approved in 2005 and blocked in 2008. Two contractors were appointed in 2009 to complete the incomplete and outstanding houses. The contractor has managed to complete 107 houses and 142 houses were under construction. Out of a budget of R4, 7 million, R1, 3 million has been spent. The project is challenged by untraced beneficiaries and other related problems.

 

Beneficiaries were allowed to occupy houses before they were finished, allegedly to avoid vandalism. Internal services were not connected. The municipality must still install water and electricity. The standard and quality of the houses are very poor. Water pipes are not correctly installed; some were laid on the ground in some areas. People have been staying in such poor conditions for the past three years. Incomplete houses were handed over to beneficiaries by a Ward Committee Member (the late Mr Yoyo), accompanied by the Contractor.

 

During interaction with the community, it was found that the community was not happy at all. The Control Sheet signed by the inspector showed that everything in the houses was done whereas it was not. The community was encouraged to sign letters indicating their satisfaction (happy letters) and was promised that the houses were going to be completed in due course. The community also accused the late Mr Yoyo of occupying four houses in the same area even though other people were homeless. The community indicated that there were no proper plumbing and no water connections. Some houses were repaired more than once.  An occupant of a house that was damaged by spring-water reported that the problem was identified and rectified but the rectification caused more damage.

 

The delegation observed that some houses present fatal conditions, such as houses that had dividing walls that were not sturdy. The delegation requested the Department to attend to such conditions urgently. The Department committed itself to make follow ups and to ensure that houses with major defects were prioritized.  

7.2          Site visit: Kamvelihle Housing Project

The project started in 2002 with an approval to build 2300 units. Challenges encountered with the project relate to roof leakages, deprivation of privacy, rooms that are not divided and toilets without a shower and hand basin.

 

It was noted that the contractor had identified and was already installing ceilings even though the roofs were leaking. 

 

7.3          Site visit: Motherwell - Matthew Goniwe

Mr Anton van Greunen gave a brief overview on the Matthew Goniwe project. He reported that a contractor called Tsepiso was terminated due to his underperformance. The project was blocked because he had no resources and this led to vandalism.   

 

The Project Manager assured the delegation that the houses were already assessed and the rectification is undertaken. He further explained that funding was a major problem. The escalation of material prices affected the progress and thus resulted in slow production. He stated that the houses built by Mr Tsepiso were of a very poor standard. He built an open plan house with a toilet space that has no toilet accessories (toilet, basin, and shower) and without water supply in and outside the house.

 

On the opposite side of the same street, women contractors explained that the houses they had built were vandalized. Their houses were of good quality, but their material was brutally taken by thieves wearing balaclavas and armed with guns at night. Several cases have been reported to the local police but there was no positive response received. Due to the above mentioned challenges the women were running short of funds because they have to rebuild these houses more than twice at the same stage. 

 

The delegation observed that the houses built by women contractors were of good quality, the problem was the installation of water meters and electricity. The delegation was informed that installation of bulk services lies with the municipality.

 

The leader of the delegation informed the Project Manager that she should ensure that toilets were installed even if they were temporary. She was also reminded of her responsibility of overseeing that houses built should comply with acceptable norms and standards and according to the approved plans as well. The Project Manager was advised to report to managers any contraventions committed by the contractors. The contractors were also advised to immediately hand over the finished houses to the municipality to avoid vandalism.

 

The delegation requested that the case numbers for Women Contractors reports be submitted to the Committee for follow ups.

7.4          Site visit: Veeplaas in- situ upgrading

The upgrading of houses was done in 2002.  Some houses were identified for rectification and those that were built below the flood line were relocated to Chetty River extension 3 & 4. The small sites were a challenge with some of the shacks being identified for upgrading. The challenges were that toilets were outside the houses and there are no sinks or basins in the toilets. 

 

During phase 1 of the project, 460 units will be built during the current financial year. The project started in March 2009 and 70% of the units have been completed. There were 8500 houses to be rectified.

 

Communities were happy with the houses, although the size of the house was 36 square metres.

 

The delegation advised the Department to make provisions for the internal ablution services and kitchen sink.

7.5          Site visit: Chetty River Ext. 3, 4 & 5

Chetty River extension 3 & 4 was built to relocate beneficiaries from Chetty River in Veeplaas. The project was granted an approval to build 327 units. The Project Manager informed the delegation about a multi purposes centre, clinics and schools that were earmarked to be constructed the area.

 

The houses were in good condition. The challenge is mud roads and no proper drainage which are the competency of the municipality.

7.6          Site visit: Zanemvula Pilot Project

The project has four designs that were agreed upon as valuable and affordable. The show houses were built on the site for beneficiaries to choose from. There were 1000 solar heating systems that were funded by the Metro.

 

The project has the following challenges:

Ř       More solar heating systems were needed to cover the whole project but there was a lack of funds.

Ř       There were no water connections.

Ř       Water meters are not installed.

Ř       There are no sanitation provisions. Residents are struggling to get facilities.

 

The delegation advised the Department to address the matters as a matter of urgency.

7.7          Site visit: Uitenhage, KwaNobuhle

The project was approved in 2000 and construction started in 2002. The project was blocked in 2006 and has since been unblocked. The project scope was to build 438 houses of which 106 were completed whilst the balance was under rectification. The project started as a People Housing Process (PHP) project, and all the beneficiaries were approved.

 

Mr Mali, the ward councilor, stated that there were six houses which were not yet built and in some houses the walls were falling down.

7.7.1          Challenges

 

Ms Nomasomi Matinise, Head of Somzana Builders, who was the contracted service provider, indicated the following challenges:

Ř       She stated that she had a challenge with the municipality in terms of paperwork which is not done on time and took long to be processed. She further stated that frequent changing of project managers impacted on their paper work. 

Ř       The theft of building material, as well as funds to replace the stolen material.

Ř       Reluctance of suppliers to supply materials on credit.

The delegation appealed to the Department to ensure that contractors were provided with the support they deserved.  Women contractors required most empowerment and support.

8           Fisher’s Corner

 

The delegation met with members of the community who briefed the delegation as follows:

 

This is a poverty stricken area occupied by people who were evicted from nearby farms in 1995. The area is challenged by frequent rains which causes flooding. The flood water flows over the graveyard before reaching the residential area bringing all the graveyard mess inside their shacks. There are no services in the area, as a result their health and safety status is continuously at risk.

 

The community needs water and sanitation. They are currently serviced by a mobile clinic which visits once a month or does not come at all. Other socio-economic services such as banks, shops and transport (taxis) were also not available. The community further reported that even though they travel many kilometers to visit the offices of the Department of Social Development, they received ill treatment from officials when they apply for grants. The farmer was also intimidating them by randomly shooting in the air as they still reside near to his farm.

 

 The delegation also met with a community representative from Kuygha (built in 2007) who gave a clear picture of poverty and frustrations of the community in her area.  She indicated that there was no water, no toilets, falling walls, leaking and loose roofs.

 

The provincial representative confirmed that Thubelisha has purchased a piece of land six years ago in St Albans. Beneficiaries have been identified and lists are ready. He further informed the delegation that money has been set aside and the St Albans project was earmarked to start in 2009. An application for Environmental Impact Assessment (EIA) was submitted to the Environmental Affairs Department and the approval was received 2 years later. However the approval was subject to certain conditions which are contested on the second application.

Beneficiaries have been identified and lists are ready. He further informed the delegation that money has been set aside and the St Albans project was earmarked to start in 2009.

 

During interaction the delegation enquired about those conditions cited in the report. The official was not able to clarify as there was no document in his possession. The delegation advised the officials to organise short term services such as water tanks that provide water to both Fisher’s Corner and Kuygha. The delegation further advised that a system should be devised that will redirect the water from the mountain streams. The delegation further requested that the copy of the EIA report be made available so as to check problems that caused the delays and to find out what the conditions were as set out in the report.

9           Alexandria Municipality

 

The Councilor welcomed the delegation on behalf of the Mayor who was absent due to other urgent municipal commitments. The Councilor stated that the municipality faced the following challenges:

 

Ř        A problem with the drainage of storm water as no structure can last due to too much water that is saturated in the soil.

Ř       Contractors do not supervise their workers and leave as soon as they receive payment.  A decision has been taken to build houses in phases and move people in as soon as they are completed.

 

The municipality reported that they have a backlog of approximately 1 500 houses. It was reported that the shortage of water is a challenge in the Ndlambe area. In order to address this challenge a research investigation had concluded that sewerage water could either be converted into drinking water, or water could be obtained from Grahamstown at a cost of 1,2 billion.

 

A conclusive report was given on projects under rectification in the Ndlambe municipality. Mr Luyanda Dyani from the Housing Department of Ndlambe, assisted by Mr Emmanuel Myatalo, the project manager, reported that Cacadu District has nine municipalities which are as follows: Bavians, Blue Crane, Camdeboe, Ikhwezi, Coega, Koukama, Makana, Ndlambe and Sundays River.

 

Mr Mayinje an employee of the municipality further reported that, the project at Ward 1, in the Ndlambe area was blocked after four years of existence. He reported that 50 houses were built without toilets, 44 were not finished yet, 38 not yet built and 5 were completed. He reported that at Bavians houses were completed. The contractor is demanding payment for plastering the houses which was part of the agreement and that was causing delays in handing over the houses to beneficiaries.  

 

In the Ikhwezi (project 418) and Janseville (project 350) districts, registration of beneficiaries was in process. The old houses were to be assessed by people from Heritage Council under the Department of Arts and Culture as to whether they could be retained or demolished to make space for new projects.

 

In Koukama the project was taken over by the Department due to mismanagement by the Contractor. The project is also encountering water shortage. It was reported that 10 projects were under the process of fixing plastering of walls and ceilings.

 

Makana has two projects, Eluxolweni which was 75% of houses are complete and Fingo which has 577. Some family houses were put under trust due to family in-fighting, with a family member claiming to be the sole beneficiary of the house.  

 

Sundays River has five projects that are doing well due to transfers. Beneficiaries have no money to pay the Claims Administrator for the transfers.  

 

The District proposed that the Department should refund them of the funds that were not used in the previous financial year. They further reported that at Thornhill the project has already installed the infrastructure and the construction of houses will follow.

 

9.1          Site visit: Kenton on Sea

On a site visit to Kenton on Sea, the delegation met Mr Magwa, the contractor of the Inxili Construction. Mr Magwa highlighted their frustrations as contractors as follows:

Ř       Value added tax and implications on housing delivery; currently the subsidy is Zero rated, resulting to a contractor the burden of 14% on behalf of the developer.

Ř       Housing competence at Local Authority.

Ř       Shoddy workmanship and the lack of enough experience and competent technical staff on the ground.

Ř       Assistance to SMME’s/emerging contractors in order to be able to grow.

Ř       Supplier protection and the taking of responsibility of materials by municipalities who act as developer.

Ř       Long lead and turnaround time for Project approvals, payments order, etc.

Ř       Appointment of mega contractors when the need arises.

Ř       Identification of related programmes to assist the Department in spending all its funds.

Ř       Political interference in housing project.

 

The project was faced with challenges of walls inside the houses not being built up to the ceiling. Houses have no inside doors and aprons that prevent walls from dampness. The Province committed itself to fix identified errors such as build walls to the ceiling and install water together with showers and sinks in the bathroom and kitchen respectively. The Province also undertook to fix the roofs.

9.2          Site visit: Thornhill Project (New project)

The officials reported that the first phase of the project was approved in 2004 which consists of 509 units. The project will have single, double and double storey houses which will accommodate low, middle and high income earners. Bulk infrastructure was in place and they were ready to start building. There were 4000 beneficiaries identified of which 350 have been approved. Other phases will wait for bulk services to be installed.  

10        Chris Hani District:

 

10.1       Site visit: Sterkstroom 

The officials reported that the Masakhe project had 721 units built in 1997. They were built with bricks and blocks on 34 to 36 square metres. The houses were still on assessment for rectification from the top to the floor slab. The delegation was assured that the problems would be rectified or demolished pending the finding of the assessment.  A toilet and an extra room will be added.

It was identified that the project had major cracks and falling walls. Some walls were half built and had one bedroom with no toilet.

The Sonwabile project was built on 40 meter square plots and has the same challenges as Masakhe.

 

The Communities complained about the Municipality delays in responding to their complaints. An elderly citizen cited that she had reported the challenges with her toilet some time ago but has had no response from the municipality.

The delegation was informed that an 18 year old woman had lost her parents and was living in a house that was falling apart with her unemployed boyfriend and with their 3 year old child. During interaction the delegation established that the young lady was interested to go back to school and had no resources. The National Department was requested to assist the woman through the Departmental Assistance programme 

10.2       Site visit: Molteno in Nkwankca Municipality (Kwa Nomonde)

Mr Yekani (Mayor of Molteno & Sterkstroom) welcomed the delegation. Mr Ndevana the ward Councilor briefed the delegation about the project. He stated that the project was approved and started in 1999, upgrading the old location with 412 houses. The project was challenged with walls that were not straight, cracked and warbling, leaking roofs and poorly constructed foundations.

 

Vandalism occurred to houses that were not unoccupied. Most beneficiaries were under-age and preferred to stay with their parents. Some beneficiaries were working in other towns such as Johannesburg and left their houses unattended.

 

The delegation advised the Municipality to conduct a research of each unoccupied house and compile a report that will be tabled before the council. Based on the report the council would take a resolution to recommend de-listing of those beneficiaries.  

10.3       Site visit: Elliot -Takalani Location

The project has 800 units and was started in 2002 and was blocked in 2005 due to disputes between labourers and sub-contractors. Only slabs were finished by the time the project was terminated. It was unblocked in 2007 and 352 units were approved for rectification.

The HOD reported that they were going to meet the NHBRC.  Tenders were called for and a contractor has been appointed. A contractor management support committee was also appointed. Consultations have been done with beneficiaries, emerging contractors and material supplier.

 

The Department is planning to beef up the supplier/contract relationship. The HOD informed the delegation that the Department has a 53% vacancy rate; therefore project monitoring was very difficult.

10.4       Site Visit: Illinge (405)

This is a rectification project with an approved budget of R3 475 251, 00. The project is running slowly and the completion date is 31 March 2010.

10.4.1      Challenges

 

The delegation was informed of the following challenges:

 

Ř       The initial cash advance by the Provincial Department of Housing (PDOH) to the NHBRC for rectification has been completely spent as at March 2009.

Ř       PDOH will now only effect payments to value created on site.

Ř       The original rectification specification is invalid in that the scope of work has increased to include non-structural defects.

Ř       There is insufficient project scope in including social facilitation, temporary shelters and operational health and safety in budget funding.

Ř       Incapacity of NHBRC to carry out the duties of an implementing agent.

Ř       There is no clarity regarding the disposal of residual materials from the rectified houses.

Ř       Non performance by contractors regarding expected quality of rectification work.

10.4.2      Intervention

 

The following intervention strategies were identified:

 

 

Ř       Application for funding to be done through a submission to TET for approval of the initial budget, variations order, temporary shelters, NHBRC project management fees, supervision by consultants, community facilitation and OHS consultants.

Ř       NHBRC to negotiate with contractors on cost and develop BoQ.

Ř       The Service Level Agreement between the Department and NHBRC to be amended to incorporate the scope unintentionally left out.

Ř       The municipality will make available a disposal site for waste materials, prepare construction detail drawings and build show houses to standardize expected quality.     

 

10.5       Site visit: Ugie, Cala and Maclear Projects

It was reported that in Ugie the project lacked beneficiaries. To avoid vandalism people who were available were asked to move in. 

 

In Maclear it was reported that there were more than 300 units. The contractor was busy with the rectification of houses that were blown away. Progress was very slow. The units were of poor quality, lacking beneficiaries. There were no water connections, no sewerage and no electricity.

 

In Cala the project has more than 500 units that were vacant. The project had the same challenges as Maclear.

 

11        Matatiele Municipality

 

Councilor Sello Ntai, the Mayor of Matatiele welcomed the delegation, the Executive Mayor Mr GG Mpumza, Councilors from Umzimvubu Municipality as well as Local Councilors in attendance. He further acknowledged and welcomed national, provincial, municipal and NHRBC officials. The MEC, Ms Mabandla joined the delegation whilst the Chairperson was addressing the meeting. The Chairperson welcomed and thanked the MEC for joining the team. She stated that, as the delegation was approaching the last round of the visit/engagements with the Province, it was important for the MEC to get a preliminary overview on the observations made by the delegation about the service delivery in the Province.

 

The Chairperson further stated that the delegation understood that the MEC has inherited a mess. She also assured the MEC that the Committee is committed to support the MEC and the Province in every endeavor to uplift the lives of the citizens of this country. The delegation has observed similar challenges in all the projects e.g. projects reported to be rectified requires re-rectification and houses handed over without sanitation provision.  The delegation was prepared to strengthen oversight and assist where possible.  At some stage the delegation observed that Councilors were given incorrect information by the officials and thus causing conflict between Councilors and the Community.  Hence, reports tabled in the boardroom meetings do not reflect what is happening on the ground. The MEC was assured by the delegation that there was no uncertainty about her leadership and trusted that she has all the strength to overcome the challenges with the holistic support from Parliament. 

 

The MEC assured members that her office was doing everything in its power to improve the situation. With regard to financial mismanagement, investigations were being conducted and serious steps would be taken against people who were found to be guilty.     

 

The Mayor and the Councilors complained about the lack of consultation in human settlement developments with regard to the employment of contractors and the local emerging contractors are being ignored. The Mayor requested that it should be addressed as it affects the communities by causing conflict that delays the starting of projects.  Disaster areas were not addressed by the Province even though during the previous Committee visits it was strongly emphasized that these were to be dealt with urgently. The issue of the developer (Sdumo Developer) being also the implementing agent was raised critically, thus causing confusion on the delegated powers of the Municipality as government. 

 

The presentation by the officials reflected the state of projects within the district.  They reported that all projects were under rectification and there were also new projects that have been identified that include rural development.  What was strange in the report was that all the projects have almost the same number of units.  It was further reported that the rectification programme in Mt Frere, Mt Ayliff and Flagstaff was awarded to one and the same contractor and that was affecting the performance, resulting in the slow pace in delivery.

 

The Mayor raised a serious concern with the fact that he had in his possession a different version of the report to the one that was presented by the officials in relation to the projects within the district. He also raised a great disappointment with the response from the Department in relation to the long standing disaster affected areas that were not attended to. He made reference to the occasion when the Portfolio Committee together with the National Department built a show house in May 2007, in response to the Dutyini disaster. He indicated that to date nothing has happened from the side of Provincial Department to take the programme forward.

 

With regard to the above mentioned reports, the delegation was of the view that there was a serious communication challenge which required urgent attention.  It was advised that the MEC should review the Kentha Construction performance. 

 

The Mayor welcomed the community and informed them that the delegation from Parliament was there to listen to their grievances. The Chairperson was given an opportunity to brief the community on the objectives of the committee visit.

 

The following issues were raised by members of the community:

 

The first resident complained about lack of communication. She stated that as community members they were not engaged in decisions affecting their lives. There was no information being shared and they were being side lined by everybody.

 

The rectification pace is very slow. The lists were hidden by the officials and were released very late. As a result houses were given to very young women and men, old people were not on the lists. Houses were also sold to people from other provinces. 

 

The community complained about the communication issue and the in competency of builders. They requested that the community should be given an opportunity to tender in order to provide their services. One member mentioned that as the Youth Development Forum in the area they are not given any space to show-case their skills. Tenders are given to contractors and subcontractors that are not known in the area, who do not have even common working equipment such as spades to start with.

 

The Youth Development Forum requested the municipality to consider youth empowerment and the local development programmes. The Forum further requested that their complaints that were tabled six months ago be addressed and that they be involved as beneficiaries of all housing projects in the area.

 

Some of the residents directed their complaints to the Mayor expressing their frustrations as the citizens of the area that were not happy at all. They mentioned that they were once called to a meeting with the Mayor. However, on their arrival only a few were allowed to enter the hall while the rest were locked outside the gates. They wanted to know what takes one to qualify for a house. They questioned the prioritization of people from Mt. Fletcher and Mt. Ayliff in Matatiele as opposed to residents who were from the area. Some members of the community also raised the unavailability of reserved land to build churches in the area. 

11.1       Site visit: Njongweville Ext.

This project was under the rectification programme. In that project the plan or design was not acceptable as the toilets in the houses were in the main bedroom.  During the previous visit it was recommended that the toilet be moved, sinks be installed and the inside wall should be built to the ceiling.  But the delegation was shocked to find that even though they were rectified, not all the previous recommendations were being considered. The delegation observed that while walls were rectified the toilet was still there and the sink was installed inside the room next to the toilet.  The cracks in the walls were becoming worse and the contractor was not addressing this. 

 

The access roads remained in the terrible state that they were in since 2007.  The area is still dark even though it was recommended that a mast light be installed to alleviate criminal activities in the area.

 

The community complained that the houses in the established Njongweville were sold out by the Sdumo Developer. The delegation was informed of occasions where a house owner makes an arrangement to pay extra for an additional room and due to economic challenges the owner fails to pay and the developer evicts and sells the house. The concern of the delegation was that the house does not belong to the developer and the owner during that period, so that would require that an investigation should be conducted.  The delegation affirmed that rectification should seriously take into account the recommendations made by delegations from the previous Parliament. Furthermore, houses with major structural defects should be demolished and temporary accommodation should be provided and the Municipality should attend to the issue of access roads urgently.

11.2       Site visit: North End Ext:

The Committee decided not to visit the project as it was reported that the status was similar to Njongweville Ext and the project was also under rectification but the process had not yet begun.

 

 

 

11.3       Site visit: Harry Gwala Ext:

In this project there were 119 houses completed. The houses did not have an apron.  There was no cooperation between the municipality and the Councilor in the handing over of the houses to the beneficiaries, hence the process was done by the Intern Staff (project manager).  Beneficiaries were given letters to sign stating their satisfaction (happy letters), yet the houses were incomplete.  It was further not clear who was handling the beneficiary list as the ward Councilor and the Mayor did not have access to such processes. 

 

During interaction the Mayor reported that the Council had never taken a decision to hand over houses. The interns were mandated to educate beneficiaries on how to look after their houses and not to hand them over.

 

The delegation advised officials that although the housing development is the competency of the Province, the consultation with the Municipality as well as Ward Councilor was very crucial. Councilors are accountable to their communities; therefore they have to be given an opportunity to access the information, so that they can be able to respond to the community concerns properly.

 

The Mayor was advised to convene a meeting with the Ward Councilor and the officials to verify if the approved beneficiary list is still legitimate, as there are allegations of manipulations reported by the community.

11.4       Site visit: Mt Frere

It was reported that development started in 2002 and was blocked in 2005. Phase 1 has 341 units and Phase 2 has 247 units. It was further reported that the completion date was set for September 2009, but was later extended to November 2009. A meeting has been set to discuss a further extension date requested by the contractor for a period of eight months. The beneficiary list is available at the municipal offices.

 

During interaction the delegation was not in agreement with the view to extend the contractor period as this development has taken a very long time.  However the MEC was requested to discuss the matter with the contractor.

11.4.1      Challenges

Ř       Members of the steering committee complained about one of their ex-members, who was bullying the community by stopping the installation of doors, a project done by a hired subcontractor.

Ř       It was alleged that the above member used to be a sub-contractor whose services were terminated due to his ill behavior of stealing material and cement.

The delegation requested the MEC to attend to the challenges together with the contractor as the member was previously appointed by the contractor.

11.5       Site visit: Mt Ayliff

It was reported that the project has 700 houses that required rectification. The project was valued at R39m of which R18m had already been spent. The project manager stated that they had made provision for temporary houses whilst rectifying the houses. Stemele Bosc Africa Engineers were appointed to do all the pre-planning activities and the budget for construction for internal services will be determined by a tender report.

The challenge was similar to the previous circumstances where people were moved into the incomplete houses with no sanitation provisions.

 

The contractor also complained about the scarcity of water in the area resulting in difficulties on project implementation. 

 

The Department was instructed to provide temporary arrangements for sanitation purposes.

11.6       Site visit: Flagstaff

The Committee decided not to proceed with the visit to this project because it was reported that there were only slabs and a few wall plates that had been constructed.

 

11.6.1      Challenges

 

The delegation was informed about the following challenges:

 

Ř       The rectified houses don’t have running water and beneficiaries move in even though the project is not finished. Owing to lack of water, residents are forced to use their neighbour’s toilets.

Ř        The non –performance of Kentha Construction who was also appointed to work in Mt Frere and Flagstaff.

11.6.2      Responses from the delegation

The committee stated that the fact that people did not have toilets in their houses was unacceptable and needed to be addressed urgently. The committee suggested the erection of temporary toilets.

12        Committee observations:

 

1.       People in most houses are living under life threatening conditions. Dividing walls are full of cracks, wobbling, and not firmly grounded. This was very scary and people feared that they might fall at any minute. There were also no showers in the houses.

2.       The architecture of the houses does not take into account the privacy and the dignity of the people.

3.        The structural defects remained, although the rectification programme was claimed to have been completed. There were no signs of rectification or construction undertaken in some areas. Some of the defect observed were:

3.1      Ceilings were being installed although the roofs were leaking.

3.2     There was no water connection.

3.3      There was no access to roads

3.4      There were no proper sanitation facilities e.g. people were relieving themselves in the bush, neighbors’ toilets or some using buckets.

3.5     There was no clean water.

3.6      There was no access to clinics and medicines.

3.7     There were no schools and the crčche in Duncats informal settlement is disgusting; kids are exposed to health hazards.  

4.       There was a lack of commitment and disregard for human dignity and a lack of Batho Pele principles and an overall lack of work ethic.

5.       There was a lack of monitoring and evaluation as follows:

5.1     Project managers and contractors do not communicate with the community.

5.2     Councilors are not involved in projects and are not in a position to address the community complaints because they lack information.

5.3     There is a lack of monitoring, evaluation and inspection in most projects.

5.4      There was a lack of communication from the Province to local Municipalities as Councilors and the communities were not aware or informed about the delegation’s visit.

5.5     Unreliable information was provided by an official who produced control sheets reflecting that the work is completed only to find that it is not.

5.6     Beneficiaries are forced to move into houses with defects.

6.        Although the Breaking New Ground (BNG) Policy was launched in 2004, houses built are not complying with the policy.

7.       There is no greening, no play ground, no amenities as stipulated in the policy.

8.       There is a lack of proper management, coordination and transparency of beneficiary lists which results in uncertainty, suspicion and corruption.

9.       There is a lack of community involvement in the housing development processes.

10.   There is a lot of littering in the Nelson Mandela Metro and in most informal settlements.

11.   Spiraling costs of material have a negative impact on the projects.

12.   There is a lack of suitable land for human settlement development.

13.   There is a lack of capacity from some emerging contractors.

14.    There is a lack of access to funding due to late payment of suppliers.

15.   Some established contractors take advantage and produce poor quality work e.g. in Cala.

16.   The contractors leave the rubble on site.

17.     There is mismanagement of funds.

18.   Cacadu area is very dry. Water is scarce and it impacts on housing delivery. 

19.   The occupancy audit report which was conducted by SERVCON has not been released in the Nelson Mandela Metro.

 

Recommendations by the Committee:

 

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

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

3.       The Department should look at a national policy to coordinate and manage beneficiary lists that would take into account the active public, municipalities and Provincial participation e.g. Housing Forums.

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

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

6.       Projects inspection by the Department should be conducted properly to ensure that good quality projects were completed on time.

7.       Opportunities should be allowed for developer contracts/agreements to be reviewed when timeframes are unreasonably adhered to.

8.       In terms of the escalation of building materials the Department is advised to conduct a research on a possible intervention to address this challenge as it impacts on the government housing subsidy programme

9.       Regulations to guide timeframes for speedy EIA process e.g. cross reference should be conducted. This recommendation does not refer to sensitive areas like wetlands. However the reality is that this could not take more than six months e.g. changing of land use.

10.   Reported cases of corruption must be well investigated and dealt with promptly.

11.   There should be effective and efficient management and monitoring of rectification projects to avoid re-rectification of what has already been rectified.

12.   The report to be formally forwarded to the legislature.

 

General comments

 

The Committee notes with concern that project rectification and change in design is very costly especially when the project has been approved. Therefore the planning stage is the critical stage to be considered (to get it right from the beginning). If this approach is not taken seriously, Government is left with no other alternative other than to compromise new project developments. House design should take into account the current needs and restoration of people’s dignity and integrity, and if this is done at the planning stage, efficiencies should be increased and costs reduced. With the trends and pace of delivery currently demonstrated, the state would not be able to deliver on its election mandate. 

 

The values, norms and standards set by government are not adhered to in some areas.  Therefore, there is a great need to strengthen up the strategic operational delivery agents so that they can be held accountable.  Risk management strategies, capacity building and re-skilling of personnel are paramount.

 

The Committee has agreed concurrently that they will delegate members to do follow ups and also to visit other areas where there are challenges.

 

Report to be considered