Yesterday, Executive Mayor of the City of Joburg, Herman Mashaba held a meeting with the MEC for Gauteng CoGTA and Human Settlements, Dikgang Uhuru Moiloa, regarding the reduction of the Human Settlements Development Grant (HSDG) for the City of Johannesburg.
“The City had previously been informed that our HSDG funding would be in the region of R248 Million on the basis of the City’s Department of Housing’s business plan, which was adopted by Council and ultimately the Province. Following the publication of the Province’s Gazette, this was reduced to R68 million [a reduction of R180m] – which was insufficient to meet the desperate housing needs of our residents,” Mashaba said.
Mashaba said the City sought the assistance of the South African Human Rights Commission and National Treasury in order to have the matter resolved.
READ: City of Joburg in dispute with Gauteng provincial government over housing funds
“The City’s sole interest has always concerned itself with delivering housing to our poor residents, which is why we have sought to do all that is within our power to engage the different spheres of government in good faith and deliver much-needed housing to our residents.
Following the engagement, the City and the Gauteng Provincial Department have agreed to the following:
- Province is to publish a special Gazette re-allocating R67 million for the South Hills Development
- R68 million is to be rolled over by the Province to the City in the current financial year, which has been approved. In addition, the City still will retain the almost R69 million which was allocated
- Province has agreed to honour its commitment in terms of the tripartite agreement for the Riverside Development, in the current financial year, to the tune of R63 million
- R33 million is to be honoured by Province in respect of the Fleurhof Development in line with an agreement with the contractor to build high-rise units.
This will take the Province’s financial commitments to R300 million for housing developments in the current financial year within the City.
“I am heartened by the fact that this matter could finally be resolved and that we could work cooperatively in ensuring that we provide the dignity of housing to residents,” said Mashaba.
