The KwaZulu-Natal Department of Human Settlements has received an additional R100 million from their national counterparts, owing to the department’s good performance.
The money will be poured into the Aloe Ridge Social Housing Project in Msunduzi, Pietermaritzburg.
This was highlighted by KZN Department of Human Settlements MEC Siboniso Duma during a media briefing in Durban, where he gave a progress report on the rollout programme of action focusing on interventions to assist families affected by recent prolonged rainfall.
He also reported on the resettling of communities affected by floods in April 2022; the unblocking of delays in the construction of houses in various municipalities; and the appointment of the new department head.
“We wish to announce that the Department of Human Settlements has again been identified to receive a reallocation of R100 million of additional funds,” Duma said.
He said the National Department of Human Settlements and National Treasury redirects the funds from under-spending provinces.
Duma thanked the national government for its support.
He explained that the department has been under severe financial pressure caused by too many housing projects graduating to the implementation stage at the same time without a corresponding cash flow. The situation was further exacerbated by budget cuts during the 2023/24 financial year, causing serious accruals in the current year.
He said when President Cyril Ramaphosa was in the province with his Cabinet, he singled out housing construction for the people as deserving special attention. He also congratulated the department for doing more with fewer resources and offered to ensure that more support is extended.
The MEC said the department is commended for always displaying the capacity to spend efficiently.
“We thank the Minister of Human Settlements, Thembi Nkadimeng and Finance Minister, Enoch Gondongwana, for processing this reallocation speedily,” Duma said.
Duma said the “R100 million is earmarked for the Aloe Ridge Social Housing Project in Msunduzi” primarily to address two matters, which are:
- To resolve the matter of 261 invaded flats through asset acquisition, and
- To offer a financial reprieve for Capital City Housing so that the Social Housing Institution may recover from business rescue and float away from the threat of liquidation.
- Aloe Ridge Development consists of 952 x two-bedroom units, situated in two separate villages in Msunduzi Municipality. Construction commenced in December 2014 and construction was completed at the end of February 2018.
He explained that 261 units of the project were invaded on February 26, 2018, by community members and military veterans. This invasion caused a serious financial strain to Capital City Housing, a Social Housing Institution owning the invaded flats.
“As a result of previous endeavours since February 2021, we have seen the occupants being relocated to housing projects in Glenwood, uMshwathi and Copesville to name a few. These interventions have, however, not been successful in totally clearing the Aloe Ridge invasion debacle,” Duma said.
He reminded interested and affected stakeholders and occupants that the South African Housing Code, particularly the criteria for the allocation of housing opportunities, remains applicable.
“We wish to caution the Capital City Housing and other Social Housing Institutions operating in KZN to always guard their assets and manage their facilities in a manner that does not invite bankruptcy,” Duma said.
He added: “Accordingly, I mandated the Head of Department to assemble a joint team of National Human Settlements, National/Provincial Treasury, Capital City Housing, and Msunduzi Municipality to ensure that this allocation achieves the desired outcomes in record time.”
At the end of 2021, former Human Settlements Minister Mmamoloko Kubayi accelerated the construction of houses within 12 months, ensuring that every new housing project has a percentage allocated to military veterans.
The veterans had invaded housing units meant for rental, saying they had grown impatient with promises of housing from government officials for former combatants.
thobeka.ngema@inl.co.za