Cape Times

AMID HOUSING CRISIS, DA UNDERSPEND­S ON ITS BUDGET

Opposition describe the Mafia-aggravated issue as collapse of service delivery

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 to 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.”