On 10 January, the MMC of Housing, Meshack van Wyk and Executive Mayor of the City of Joburg Herman Mashaba conducted an oversight visit to the Riverside Housing Project near Diepsloot.
The completion of 1 485 RDP houses at the project is expected to be stalled due to the Gauteng Provincial Government’s decision to cut the City’s Human Settlements Development Grant (HSDG) funding by R180 million.
At the start of the financial year, the City was informed that the HSDG funding would be in the region of R248 Million. However, a provincial gazette indicated that the funding from provincial government would only amount to R68 million – a reduction of R180m.
In a statement, Mashaba said futile efforts to resolve the dispute have led to the City calling upon the urgent intervention of the National Treasury.
“By exercising its powers, it is hoped that National Treasury will be able to promptly intervene in this dispute and assist the City in receiving funding which will result in the construction thousands of housing units for our most needy residents,” Mashaba said.
Mashaba alleged that the decision to reduce the City’s HSDG funding comes on the back of the City spending 98 per cent of its Housing Capital Budget last year, and having contractors on the ground busy with construction.
“The decision is clearly irrational and informed by political considerations rather than the interests of our residents who are suffering as a result of the 300 000 housing-unit backlog inherited by the multi-party government in Johannesburg,” he said.
Mashaba said the Riverside Housing Project visited was just one of the numerous housing developments across Johannesburg which will come to a grinding halt.
The following housing developments are expected to be affected:
- Elias Motsoaledi housing for military veterans
- Elias Motsoaledi’s RDP housing
- Fleurhof RDP housing development
- South Hills housing project
- Riverside View development
“The City of Johannesburg has exhausted efforts to engage MEC Moiloa, Premier Makhura, Minister Mfeketo and President Ramaphosa on this decision to reduce its HSDG funding. These efforts have been ignored outright and I am yet to receive a response to any of my letters,” Mashaba said.
