The national Department of Human Settlements (DHS) has instructed provinces to put measures in place to immediately downscale the delivery of government houses.
According to DA Shadow Deputy Minister of Water and Sanitation and Human Settlements, Emma Louise Powell, a letter sent to Provincial Heads of Department by DHS states that the current economic reality renders the housing subsidy approach to delivering top structures fiscally unsustainable.
This, she said, meant that the ANC has unilaterally changed its housing policy as it can no longer afford to build houses for destitute South Africans. She furthermore stated that the policy shift has been enacted prior to its formal adoption by cabinet or parliament and without any public participation.Aside from the budget cuts, the DHS directive reportedly seeks to downscale the delivery of houses. This means that provinces will not be able to enter into new contractual commitments for government houses as from 1 April 2021.
Provincial housing departments have been informed that housing projects planned for next year will only be supported if prioritising the elderly, military veterans, people living with disabilities and child-headed households and contribute to medium to high density development and promote integrated development.Current contractual commitments for the Medium Term Expenditure Framework period, as part of a contractor’s current work package which has been awarded at present will continue but provinces have been informed that no new top structure projects may be awarded until approval is sought from the national department first.
According to National Department of Human Settlements Spokesperson, McIntosh Polela, it is common knowledge that government budgets are constrained, and this impacts the funds available.Spokesperson for the Limpopo Department of Cooperative Governance, Human Settlements and Traditional Affairs, Molebatsi Masedi, dismissed the DA’s allegations as propaganda, saying the MEC, Basikopo Makamu on 9 November met with 54 contractors appointed for housing units to be built in the 2020/21 year. He said the reduction in housing units is because of Covid-19 considerations, and nothing else.
“There are budget cuts across departments and government spheres.”
Questions on how much the department already spent this year on housing and what the original and adjusted budget for housing was, remained unanswered. Housing delivery had already been downscaled in May, when government cut R2,26 billion off the 2020/21 housing budget, R1,7 billion from the Human Settlements Development Grant and R1,1 billion from the Urban Settlement Development Grant.
A total of R377 million was cut from the title deeds programme to fund informal settlements upgrading programmes. During the October 2020/21 adjustment budget, an additional R345.399 million was transferred from the housing budget to the Department of Public Enterprises for the implementation of the SAA business rescue plan.
Story: Nelie Erasmus
