JOINT MEDIA RELEASE BY DEPTOF HOUSING AND SANCO

Issued by: SA Communication Service

JOINT MEDIA RELEASE

ISSUED BY THE DEPARTMENT OF HOUSING AND THE SOUTH AFRICAN NATIONAL CIVICS ORGANISATION (SANCO)

Delegations from the Department of Housing and the South African National Civics Organisation, led by Director General William Cobbett and Assistant General Secretary Linda Mngomezulu respectively, met in Pretoria today. Both organisations are happy to report that, as a result of these deliberations, a new relationship based on co-operations and mutual trust has been established.

The parties met in an attempt to resolve outstanding issues related to the issue of housing delivery in South Africa. The Department of Housing indicated that it recognised SANCO as an important partner in the resolution of South Africa's housing problems. For its part, SANCO made it clear that the organisation views the era of boycotts as over in South Africa. The new relationship will initially focus on three main areas:

• The extension of credit to low income households, and the creation of a normalised environment in which lending could take place. The Department of Housing will approach the Association of Mortgage Lenders to involve SANCO in identifying areas in which the Record of Understanding could be improved. In addition, SANCO will engage with the Mortgage Indemnity Fund (MIF) and Servcon with a view to providing mechanisms to avoid unnecessary evictions;
• Problems with inferior building products having been delivered, and mechanisms of dealing with the legacy of such bad building;
• SANCO's active participation in a People's Housing Process currently being formulated by the Department with the nine Provinces. In this regard, the Department view's SANCO' ongoing participation as vital in the medium to longer term, particularly in the context of the overwhelming poverty of the majority of the population.

Director General Cobbett, speaking after the meeting, indicated his regret that it had taken this long to establish a sound and co-operative relationship with SANCO, and expressed the view that the benefits of this relationship would assist the cause of housing throughout the country. He has undertaken to organise a meeting between SANCO and the Minister of Housing Minister SD Mthembi-Nkondo MP, to add further impetus to this arrangement.

The SANCO delegation included Head of Housing Department, Sandi Mgidlana and Housing Co-ordinator Nomvula Radebe; while the Department of Housing was represented by Chief Director Beat van Rooyen, Director of Communications Clarence Kwinana and MIF CEO Nkululeko Sowazi.

Enquiries William Cobbett (012) 341 1726 Linda Mngomezulu 082 444 7137