Date: 31/05/2004
Source: Ministry of Housing
Title: L Sisulu: Media briefing after Minmec meeting with top management of housing sector


STATEMENT BY LN SISULU, MINISTER OF HOUSING, AND ALL THE NINE PROVINCIAL MECS AFTER THE FIRST MEETING WITH TOP MANAGEMENT OF THE HOUSING SECTOR, Lord Charles Hotel, Somerset West Hotel, Western Cape, 31 May 2004

BREAKING NEW GROUND TO HOUSE ALL

Members of the media, thank you for joining us this afternoon.

With me are our nine provincial MECs:

1. Mr Marius Fransman, from Western Cape - our host
2. Ms Nomvula Mokonyane from Gauteng
3. Mr Gugile Nkwinti from the Eastern Cape
4. Ms Eunice Selao from the Northern Cape
5. Mr Frans Star Vilakazi from North West
6. From Limpopo Ms Machwene Semenya
7. Mr Jabulani Mahlangu is from Mpumalanga
8. Mr Itumeleng Kotsoane from the Free State
9. Last, but in no-way least, Mr Dumisani Makhaye from KwaZulu-Natal
10. Our Acting Director-General Mr Ahmedi Vawda
11. Provincial Heads of Departments of Housing
12. Chief Executive Officers of housing institutions
13. Chairpersons of Boards.

We have gathered here to prepare to break new ground to house all.

This meeting focuses on reviewing what we have done in the past ten years, learn from our mistakes and to improve for the better. We have all agreed that there is a lot of work awaiting us in all our provinces.

Just to refer to some successes over the past ten years. Since the inception of the housing subsidy scheme in 1995 more than 1,614 million housing units have been completed. In the process more than 7 million people have been assisted by Government to obtain a home of their own.

International and national experts agree that government has done very well in the past ten years when it comes to providing shelter to the poorest of the poor. In our meetings with regional and international organizations the story of South Africa is an admired one. However, we still face serious challenges.

The Census 2001 indicates that the percentage of households living in informal dwellings (including backyard shacks) has remained constant at about 16.4% of the total population and the absolute number of urban households without formal shelter has increased by 383 217 between 1996 and 2001.

Across the nine biggest cities in South Africa, approximately 1,023,134 households remain in informal settlements. This means that the total number of people living in informal settlements is about 5.2 million (in terms of the 2001 census the household size is approximately 3,8 people per informal dwelling). The bulk of this backlog is located at the lowest end of the income spectrum, constituting approximately 16.4% of all households in South Africa. With the active programme of new housing delivery, informal dwellings have only grown by 0.4% as a proportion of national housing stock. These challenges call upon us to speed up the pace of delivery, improve our institutions and systems to respond.

One of the biggest challenges, we have begun addressing with immediate effect, is to respond to issues raised during our 2004 general elections campaign. In our interactions, walk about in communities and Imbizos the people raised a number of critical issues; they said we should deal with them immediately. Among them was fraud and corruption by councillors, government officials, developers and contractors. The issue of the size of houses in relation to the size of families that were supposed to stay in the houses was also raised and we need to deal with it.

Also critical is the issue of R2 479 that needs to be paid before one gets a house and selling of government subsidized houses by debt collectors and municipalities to settle service and other petty debts.

Other issues raised relate to the failure of government to spend money allocated to build houses despite the reality that there was still a great shortage of houses for ordinary people. Not forgetting the illegal occupation of houses and the fraudulent selling, thereof, to foreigners.

All of us have begun responding to these challenges. I should mention that the issue of Batho Pele among public servants is not open for discussion; we are not going to tolerate officials who think they have a right to ignore the vision of Batho - Pele. The time for non-delivering personnel is over in the public service.

We are mentioning some of these issues to reassure our people that we have listened to them and we are ready to respond to their challenges.

In the coming five years we will focus our efforts in key areas among them,

Fraud and Corruption: this is an area with which we have been dealing together with the National Directorate of Prosecutions and other security agencies. We already have cases that have been handed over to the NDPP that include complaints of alleged cases of fraud, corruption and maladministration.

Capacity development: the department is in a bilateral with the Department of Provincial and Local Government to try and align capacity building programmes for local authorities. We are also capacitating the National department to be able to support provinces. A Provincial Support Unit would be set up with immediate effect to support provinces in their daily responsibilities.

Fast-tacking delivery: We believe that we can increase our speed of delivery. Increased capacity will, among others, help enhance delivery in the provinces and local authorities. We also want to accredit as developers, many municipalities as possible to implement housing projects. We have also devised a strategy to unblock projects that have stalled by various reasons such as land legal matters (transfer), poor administration at the time and the impact of inflation.

Through the Special Integrated Presidential Projects launched in 1994, the department learnt much about the reconstruction of communities and human settlements in an integrated manner. Much was also learned from the Urban Renewal Programme, started a few years ago and from a concerted effort in the city of Cape Town to address the needs of those living in informal settlements. The programme will be underpinned by a dedicated funding mechanism and will constitute a National Housing Programme.

Attention will also be given to the renewal of the inner city areas and to the neglected lower end of the housing rental market. A social housing policy, providing for the development and regulation of viable social housing institutions, to develop and manage, largely rental, housing stock for the low end of the market, has recently been approved. A special medium density housing development programme currently under development will augment this programme. The Department aims to create an enabling environment for partnerships with the private sector to invest in these projects.

We believe that HIV and AIDS affected families require special attention. The impacts of HIV/AIDS on human settlements necessitated the Department to articulate strategies that are supportive of other government departments and, thereby, ensure an integrated response to dealing with the epidemic.

Processes of developing and implementing various interventions to accommodate the special needs that will arise from the epidemic are being undertaken. Pilot programmes such as the supply of housing to orphanage trusts and organisations have been developed, implemented and monitored to provide models for further development and mainstreaming. Certain Provincial Governments (KwaZulu- Natal and Mpumalanga) adopted regional policies to accommodate the special housing needs emanating from the epidemic. These projects pertain to special care housing facilities and include repossessed houses of financial institutions, converted into children care facilities. The housing subsidy scheme will also be adjusted to ensure that the beneficiaries affected by HIV/AIDS are assisted.

The Department of Housing has founded a number of institutions mandated with ensuring access to housing finance for low-income households. Chairpersons of these institutions are with us today; you are free to interact with them.

These institutions are accountable for a number of responsibilities; Let me briefly go through them and their mandates:

* National Housing Finance Corporation (NHFC): They are tasked with searching for new and better ways to mobilise finance for housing, from sources outside the state;

* Servcon Housing Solutions: To provide exclusive management services with respect to the designated or ring-fenced portfolio, comprising Properties in Possession (PIPs) and Non-Performing Loans.

* Social Housing Foundation (SHF): They are tasked with developing and building capacity for social housing institutions and to develop a policy framework for the sector;

* National Urban Reconstruction and Housing Agency (NURCHA): This is an innovative low income housing finance company that packages funding and takes considered risks by contributing to provide adequate housing;

* Rural Housing Loan Fund (RHLF): A section 21 company in partnership with the German Development Bank. RHLF was set to enable lower income families to access loans on a sustainable basis to build or improve their homes in rural areas;

* National Home Builders Registration Council (NHBRC): This is a very important institution, it provides housing consumers with warranty protection against defects in new homes and protection against any failure of builders to comply with their obligations in terms of the Act

* Thubelisha Homes: A special purpose financial vehicle to create rightsizing stock. Rightsizing is a process in which occupants of bank-owned properties in possession of mortgage loans in default, are assisted in relocating to more affordable homes, and

* People's Housing Partnership Trust (PHPT): To implement a Capacitation Programme. This programme is designed as a vehicle for building the capacity of people at all levels of government, non-governmental organizations, Community Based Organizations and beneficiaries themselves.

The National Housing Subsidy Programme is funded out of the South African Housing Fund. In terms of the Medium Term Expenditure Framework, an amount of R3, 8 billion was allocated to the South African Housing Fund for the 2002/2003 financial year and amounts of R4, 2 billion and R4, 5 billion included as a planning guideline for each of the subsequent two financial years (2003/2004 and 2004/2005).

Ladies and Gentleman as you can see we have a lot of work to do. You can continue to interact with all MECs and Heads of Institutions.

Thank you.

Issued by: Ministry of Housing
31 May 2004