Human Settlements and Infrastructure MEC Tertuis Simmers has attributed the underspending to various factors, including a 29.7% increase in the housing subsidy quantum, criminality and violence. Picture: Armand Hough/Independent Newspapers
Despite an alarming housing crisis, the DA-led Western Cape Human Settlements Department under-spent hundreds of millions of rand of its budget in what opposition parties are describing as “a collapse in service delivery.”
Human Settlements and Infrastructure MEC Tertuis Simmers has attributed the underspending to various factors, including a 29.7% increase in the housing subsidy quantum, criminality and violence.
“Even though this increase was widely welcomed, it was only approved at the end of March 2023 and a breakdown of the increased quantum was only provided in August 2023.
“This caused a delay of five months as we had to recalculate and accommodate the new subsidy quantum in all the projects. As a result, the approval and implementation of several new projects was delayed.
“Construction projects have significant lead times from approval to implementation and completion, and so it is essential that funding accommodates these lead times,” said Simmers.
They were also confronted with challenges experienced in contract implementation of illegal land invasions on land earmarked for housing development.
“The continued threat of the construction Mafia and extortion through acts of violent threats, shootings and intimidation on several project sites led stoppages,” said Simmers.
In one example, the Gugulethu infill project has been halted since March 2022 due to the alleged Mafia and R244 million was not spent.
Construction here started in 2017 and was expected to deliver more than 570 homes. However, more than five years later, only 23 houses have been completed.
Speaking during the release of the third-quarter crime statistics, Police Minister Bheki Cele said efforts to deal with and neutralise construction Mafias were ongoing, with more than 61 suspects linked to these crimes arrested from April to date.
“The Western Cape province has also made significant progress in dismantling and taking down those behind the 30% construction Mafia grouping, where projects were delayed as a result of acts of criminality.
“Among the many arrested are the kingpins, which include Ralph Stanfield and his wife Nicole Johnson and three others,” said Cele.
Cele also mentioned “Nafiz Modack, Yanga Nyalara, Lungi Arnold Madolo and Bonke Makalala”.
Simmers said despite the shortcomings, the department had innovatively delivered on its mandate, with more than 1 765 houses delivered between April and December 2023.
“In addition, we have installed more than 295 solar geysers as part of an initiative to mitigate the energy crisis to assist indigent households and beneficiaries with disabilities. A total of 2 614 title deeds have been provided to our beneficiaries to promote security of tenure and leave a lasting legacy.
“While this underspending will have an impact on several projects, the Western Cape government remains committed to creating an enabling environment that benefits its citizens,” he said.
GOOD Party secretary-general Brett Herron said the province had de-prioritised housing in the middle of a highly visible housing crisis and the results were irrefutable. “It is jaw-dropping to see them claim that they are building 1700 houses, so far this financial year.
This is evidence of a complete failure of delivery. It is a direct result of poor political leadership and their very expensive and unnecessary and expensive government ‘refresh’ project which reduced the Human Settlements Department to a branch of infrastructure.
“Just 1 700 houses for the whole province is a total collapse of housing delivery and it follows on from last year’s collapse where the province planned to build a paltry 8 400 houses and only managed to achieve 5 800 houses – being one of the worst-performing provinces in the country.
“The DA has been unable to deliver on its housing mandate, leaving hundreds of thousands of families trapped in poor living conditions, but it is engaged in political stunts to demand more functions be devolved to it,” said Herron.
Reclaim the City’s Karen Hendricks said the province was blaming occupations for its own lack of will and failure to address the current housing crisis in central Cape Town.
“Cape Town is characterised by a housing affordability crisis, which has left many households unable to access formal housing opportunities. The current housing backlog is estimated to be around 360 000 units, resulting in residents being pushed towards housing self-provisioning in informal settlements, backyard dwellings and more recently occupied vacant buildings.”
ANC MPL Pat Marran said they had warned Premier Alan Winde that the new department would be “too big for someone like Simmers”.
“We were made aware of this over R200 million under-expenditure earlier in the year and it’s part of the issues we will raise with Premier Winde during Sopa.
RISE Mzansi provincial convenor Axolile Notywala said: “The challenges faced as a result of the construction Mafia are extremely concerning. However, housing delivery has declined over the years and money has been sent back to national government due to underspending, as reported by Ndifuna Ukwazi.
“That there has been no social housing close to and in the CBD of Cape Town since 1994 proves there is no desire from the DA-led government to fast track the undoing of apartheid spatial injustice.”
Cape Times