Issued by: Ministry of Housing
Recent press reports drawing on extracts from the President's opening address to Parliament and briefings held by both our Ministries, have seemingly led to confusing interpretations and speculation on the part of some press.
In this regard we believe it is therefore important to:
Firstly, the President's pronouncement of Governments resolve to intervene where market imperfections and/or failures effective undermine our social programmes is an issue on which both Ministries are in complete agreement. In fact, a number of existing institutional arrangements such as the National Housing Finance Corporation (NHFC) and Mortgage Indemnity Fund (MIF) were interventions of Government specifically designed to influence market imperfections and increase private sector participation in critical areas of our housing programme. Therefore in a similar fashion it is Governments' prerogative with respect to the development/construction areas of housing to examine market imperfections or failures that are affecting delivery capacity, pace and quality.
As the president indicated, the issues of the creation of a housing parastatal or the consolidation of existing institutions is one that is under constant review. Any decision about the creation of any institution within the housing sphere of Government will be driven by the Housing Ministry's analysis of programmes and policy objectives at any given time, in liaison with other relevant departments.
In a continuous effort to improve the capacity, pace and quality of the housing programme, agreement was reached a while ago by our respective departments about the need to ascertain "existing housing capacity" within various state or state-owned entities not directly under the purview of the Housing Ministry. This exercise is proceeding and will hopefully culminate in identification, utilisation and consolidation of such institutional capacity to enhance the housing delivery programme.
Simultaneously, the Housing Ministry and department have over the last few months engaged in a process of practical analysis of various proposals emanating from the Union Movement, Nedlac Development Chamber and our own parliamentary standing committee, one of which is the proposed formation of a Housing Parastatal.
All the proposals, we believe are premised on the need for continuous improvement of the quality and pace of delivery. The Ministry of Housing welcomes these proposals and is committed to ensuring that where such proposals can practically be implemented to assist the housing programme they will be implemented.
It is with the background that both Ministries will continue to co-ordinate their functions where required.
Any further developments in this regard, including mechanism to enhance our institutional arrangements, will be made public.
Ms Sankie D Mthembi-Mahanyele, MP MS Stella Sigcau, MP Minister of Housing Minister of Public Enterprises
Contact: Gege Kekana Tel: (021) 455-089 or 45-72-95/6/7 Fax: (021) 453-610 Cell: 083-457-6577