Thursday, April 21, 2011

Housing in state of crisis, says Sexwale

Human Settlements Minister Tokyo Sexwale has agreed with the DA that his department faces a crisis with more than a 1.5 million subsidised houses having been built so badly they need repairing or rebuilding, at a cost of billions.

"I am the Minister of Human Settlements, not the Minister of Rectification," Sexwale said in reply to debate on his department's R22.5 billion budget, up 38 percent on last year's.

In a presentation to MPs recently, the National Home Builders Registration Council (NHBRC) said that of more than three million houses built between 1994 and last year, only 409 100, or 13 percent, had been registered with it.

It estimated that of the remaining 2,638,500 houses, 40 percent or 1,055,400 would need rectification, and 20 percent or 609,520 would need to be rebuilt. It calculated the cost, at current prices, to be R58.7bn.

Butch Steyn (DA) said Sexwale's department lacked a coherent strategy to address the problem. With only R1.3bn allocated this financial year for rectification, "it could take 40 years" to complete this process.

Sexwale agreed there was a crisis and said the NHBRC was under his "watchful eye".

The Special Investigating Unit was probing 20 "questionable" contracts involving R2bn.

"Criminals have been arrested, corrupt officials and councillors dismissed, and money for fraudulent and incompetent contractors has been recovered."

- Cape Times

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