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Showing posts with label Housing Corruption. Show all posts
Showing posts with label Housing Corruption. Show all posts
Thursday, June 25, 2015
Thursday, June 11, 2015
Thursday, June 4, 2015
Cape Town Stadium: FIFA icon or albatross
Cape Town - An albatross around the necks of ratepayers, or a valuable and iconic asset? The Cape Town Stadium, running at an annual loss of about R40 million, was described as both during Tuesday’s full council meeting where it was agreed that the current management plan should be extended by a year to June 2016.
Councillors alluded to the recent Fifa corruption scandal during their debate on the stadium’s future, with Andre Fourie of the Freedom Front Plus saying that Fifa president Sepp Blatter took billions of rands out of the country, leaving Cape Town and other municipalities with massive bills for the stadiums that were built.
He said the consortium of Stade de France and the local SAIL Group pulled out if its management agreement with the city soon after the World Cup when it realised the stadium would never be filled to capacity.
Fourie said it was unlikely that the formation of a municipal entity to manage the stadium would be the panacea the city needed to make the facility financially viable.
“This albatross - despite the thousands that it cost the city to build - is costing ratepayers in unaffordable monthly operational and maintenance costs.”
Fourie said the only way the city could avoid any further financial loss was by selling the stadium to SA Rugby for R1.
“Acknowledge that the stadium was a mistake. Accept that you are not going to make it commercially viable without an anchor tenant. Cut your losses - and the albatross around the neck of Cape Town’s ratepayers - and offer the stadium to Newlands for R1.”
Demetrius Qually, of the DA, said that although the Fifa scandal had tarnished the World Cup legacy, the stadium remained a valuable and iconic asset.
There was also “justifiable” concern about the long-term viability of the stadium. However, the business plan being finalised, which included the lifting of restrictive environmental conditions, would make it sustainable.
“We are confident that the stadium and Green Point Urban Park can be both viable and financially sustainable,” said Qually.
Grant Haskin, of the African Christian Democratic Party, agreed that the management of the stadium had to continue without interruption while the business plan was being finalised.
But he said the city had been promising “stadium profitability” since 2009. “How then can one blame irate ratepayers for their calls to rather demolish the stadium instead of wasting their money? What was a proud moment in Cape Town’s history has become a furious embarrassment for the city and its people.”
Majidie Abrahams, of the ANC, argued that extension of the management arrangements without clarity on the business plan could put the city at risk of spending and losing money for another three years.
But mayor Patricia de Lille pointed out that the management plan had been extended to June 2016, and not 2018 as initially proposed, and included a condition that a progress report on the commercialisation of the precinct would be submitted to council in March next year.
Garreth Bloor, mayoral committee member for economic development, tourism and events, said the rezoning process was already under way. Demolition of the stadium was not an option, he said.
The city had been advised of 18 revenue streams that would generate a profit for the next 10 to 15 years.
This excluded any revenue that would come in from an anchor tenant.
He said the naming rights alone would secure between R5m and R10m in revenue for the city. The tabled revenue budget for the next financial year is R14m.
But Bloor allayed fears about the discrepancy between the stadium’s projected costs and income.
Although the tabled operating budget expenditure for 2015/2016 was R138m, limited commercial rights would bring this amount down to R34.2m. “The commercial rights process has already started. We will make it work and we will continue the (World Cup) legacy,” he said.
[like a mountain goat skipping through the diaspora with donations...]
anel.lewis@inl.co.za
- Cape Argus
Tuesday, June 2, 2015
Government is not concerned about it's citizens here is the proof.
“One should question a government’s willingness to deliver housing for the poor when it builds a white elephant for the rich,” says AndrĂ© du Plessis of Cape Town-based InternAfrica, which campaigns for sustainable housing.
- Financial Times London 08/07/2010
Naturally what followed was colluded stadia construction Cape Town cost R4,4 Billion and service delivery of toilets for 50,000 that remain locked up and maintained at R60 million cost per annum... and Blikkiesdorp

All I can say is #ITOLDYOUSO!
LONG AGO!
Saturday, May 30, 2015
South Africa's 'brazen cover-up' of Zuma's home upgrade
The offence itself was bad enough - an orgy of overspending by obsequious officials and conniving contractors who managed to spend 246m rand ($21.7m, £14.3m) of public money lavishly upgrading South African President Jacob's Zuma's private homestead, Nkandla.
That is nearly 10 times what taxpayers spent on Nelson Mandela's two homes, and 20 times what it cost to secure Thabo Mbeki's house.
As we now know, Mr Zuma's "essential security upgrades" included a swimming pool, an amphitheatre, a chicken run and a visitors' centre. A fairly humble collection of traditional buildings on a rural hillside has been transformed into something more like a luxury holiday resort.
But as is so often the case in politics, it is the cover up - long, venomous, hair-splitting and sanctimonious - that has been most revealing, and most depressing.
Some of Mr Zuma's closest advisers - those with an eye on image and votes, rather than on real or imaginary security concerns - were urging him from the very beginning to apologise for any errors and to volunteer immediately to pay for any unwarranted expenditure.
The scandal could have ended in a week, and the president could even have emerged with his status enhanced.
Instead Mr Zuma and his supporters have sought to undermine the credibility of South Africa's public protector - whose exhaustively forensic report recommended that he repay some of the money - and have ridiculed the opposition for seeking to turn Nkandla into a presidency-defining scandal about accountability and corruption.
Now the police minister - a man whose career is, of course, entirely dependent on Mr Zuma's goodwill - has produced his own report, which spells out, in inadvertently comic detail, how conveniently the mosaic-inlayed swimming pool can double as an essential source of water for fighting fires.
The minister's unsurprising conclusion - Mr Zuma should not pay back a penny.
Comic moment
President Zuma did not hide his sense of vindication.
In parliament this week he openly mocked the opposition's attempts to pronounce the word "Nkandla" in a not-so-subtle hint that it was white politicians who were driving the criticism.
It was a confident, boisterous, divisive, and - at least for his supporters - genuinely comic moment.
And there is no doubt that Mr Zuma's jibes will have gone down well with his base.
- BBC
Friday, May 29, 2015
Tuesday, May 26, 2015
Toilets for 50,000 - Money woes for Cape stadium
Cape Town - Cape Town Stadium continues to be a massive financial drain on the City of Cape Town, and it doesn’t appear things will get better any time soon.
The stadium’s operational budget for the 2015/2016 financial year is a staggering R13 758 7954, while expected revenue is a just a tenth of that – R14 843 871.
A substantial portion of the stadium’s operating budget expenditure for the 2015/2016 financial year – more than R20 million – has already been allocated to salary related costs.
The bill is already nearly R6m higher than the expected revenue which is brought in by the hire or rental of portions of the stadium.
Running at a loss of more than R40m a year, the city is considering various commercial models that would make it financially viable.
However, this plan has not been finalised, and the city can’t afford to let the current management arrangement lapse. The temporary management arrangement, which was extended from June 2014, expires at the end of June.
In the absence of a long-term business plan that deals with staffing issues and commercial rights, the City of Cape Town has no option but to extend its current contracts and management plan for another year.
“The retention of the status quo will reduce any down time through the recruitment of a new team, thus reducing operational, infrastructural, safety and reputational risks,” said Lesley de Reuck, of the city’s tourism, events, and economic development directorate. The current staff was familiar with the stadium and the park, as well as their processes and standards.
“Events already booked for the 2015/2016 financial year require contractual fulfilment. These represent potential repeat clients and are critical revenue generators that must be nurtured. The facility cannot cease to operate on June 30, 2015,” said De Reuck.
In a report considered by the mayoral committee last week, De Reuck said a substantial portion of the stadium’s operating budget expenditure for the 2015/2016 financial year – R20 127 130 – had already been allocated to salary-related costs.
“The retention of the status quo will reduce any down time through the recruitment of a new team, thus reducing operational, infrastructural, safety and reputational risks.”
The current staff were familiar with the stadium and the park, as well as their processes and standards.The stadium has also been booked for events in the next financial year. “Current contractual and partnership agreements with event organisers must be honoured. Failure to do so may result in breach of contract and goodwill,” said De Reuck.
The team of external consultants appointed in 2011 to do a business modelling exercise on the stadium recommended that the land use and environmental conditions for the use of the stadium and its precinct should be changed to allow for commercial activity.
These processes are already under way and De Reuck said the submission of the formal application for amended land use planning conditions was “imminent”. The proposed amendments to the current environmental conditions were released for public comment last month.
He said both processes would be concluded by December, if there were no appeals.
Once these provisions have been granted, steps will be taken to release the Granger Bay Boulevard site into the property development market, he added.
Although the report called for a three-year extension of the management plan, until June 2018, Mayor Patricia de Lille amended the time frame, during Friday’s mayoral committee meeting, by just one year, to next June.
She also called for a progress report on the business plan to be submitted to the council by next March.
Also on the operational budget is a depreciation cost of more than R58m and repairs and maintenance costs of more than R192m. The total operating budget is more than R137m, but the expected revenue for the stadium for the next financial year is more than R148m. Most of this comes from the hire or rental of portions of the stadium.
anel.lewis@inl.co.za
- Cape Argus
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Thursday, April 23, 2015
Backyarders mark ‘their plots’ in Philippi
Cape Town - Backyarders from various townships marked plots on an open piece of land in Philippi on Wednesday, saying they were tired of waiting for housing.
The group used sticks, pangas and pegs to mark off pieces of land where they plan to erect structures near the Joe Gqabi transport terminus off Stock Road.
The residents were from Langa, Gugulethu, Samora Machel and Site C, and received help from community leaders.
One of the leaders, Joseph Makeleni, said they would continue to assist residents who wanted to invade open land.
“Law Enforcement and police came to remove us, but we were peaceful and some of the people left and others stayed.
“People have been waiting for housing for a long time, they are on the database for a long time and nothing is happening.”
Makeleni said they would continue to take land as a way to make the city notice them and their need for housing and proper service delivery.
“We feel rejected by the government and we will provoke them until they give us services.
“It is the only way to get their attention, by taking over the land that they boast about but don’t use.”
Makeleni said most of the privately owned land belonged to “rich white businessmen”, which was unfair.
Charmaine Mkoni, a community leader from the Marikana informal settlement, said they were forced to fight for themselves as their elected councillors were not doing much about their lack of housing and service delivery.
“We are planning on sleeping here because people are entitled to have spaces and housing.
“We will help each other to put up shacks and stay here,” Mkoni said.
City Law Enforcement spokesman Neil Arendse said they responded to the invasion but it was quiet and no serious incidents were reported.
Arendse said they remained in the area and officers were also focusing on other land invasion hotspots.
“Even though some of the land is privately owned, at some point it becomes a city problem. When the owner doesn’t do anything about it (invaders), the city has to step in,” Arendse said.
yolisa.tswanya@inl.co.za
- Cape Argus
Monday, April 13, 2015
No case yet on gang building protection
Cape Town - Police say “information from ground level” about protection money being paid to the Hard Livings gang by city-contracted construction companies refurbishing flats in Manenberg is not enough to warrant an investigation.
On Sunday, Jeremy Vearey, head of Operation Combat, a police operation targeting gangsterism in the province, said he had been notified of the situation in Manenberg, but needed a statement under oath to officially investigate.
“We received information from ground level which indicated these activities were taking place, but information is information. We need a statement under oath to form the basis of a case docket and then we can investigate,” Vearey said.
Vearey mentioned a report published on Sunday in the Weekend Argus, the Cape Times’s sister newspaper, that revealed an e-mail from safety and security mayoral committee member JP Smith to other city officials, dated December 12, had been leaked.
Smith confirmed this on Sunday. He said he had been made aware of the allegations in December last year.
“In the e-mail, I basically said that all the information we have needs to go to the SAPS because it is a criminal offence in terms of the Prevention of Organised Crime Act and must be criminally prosecuted.
“I made it clear that the dossier be handed over and the complaint made to a senior police officer,” Smith said.
Vearey said: “We have not seen or received any dossier yet.”
Smith said he would be meeting with the city’s human settlements department and the construction companies this week.
“Either we will hire city law enforcement as security or we will select a panel of security companies and choose one to work there,” he said.
Mayco member for human settlements Benedicta van Minnen said the city was investigating two construction companies.
“Initially there was H & I Construction, and now there is Good Hope Construction. We are busy with our investigation and will be meeting again this week to discuss the way forward. The refurbishments will continue this week and we are on track to finish in June,” she said.
Good Hope Construction chief executive Raziek Rajah denied that his company was being investigated.
“It must be made clear that according to the city, we are not under investigation. They have made contact to confirm this.”
Rajah refused to be drawn on whether his workers were asked to pay gangsters protection money.
Attempts to reach H & I Construction for comment proved fruitless.
carlo.petersen@inl.co.za
- Cape Times
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Cape Town Stadium may cost another R60 million
Ratepayers are not done paying for the Cape Town Stadium just yet, because a draft environmental assessment report released for public comment reveals it could cost as much as R60 million to refurbish parts of the stadium to make it suitable for commercial activities.
The consultants working on the assessment, the Environmental Partnership, said this was an "approximate" cost that would depend on the stadium's full commercial potential being realised. With more limited specifications, the amount could be drastically reduced.
But the use of the stadium for office and retail space could bring in an annual revenue of R31m.
It has cost the City of Cape Town R4.4 billion to build the stadium for the 2010 World Cup, and the facility has been running at an annual loss of R39m since then.
Luke Stevens, spokesman for the Camps Bay Residents' and Ratepayers' Association (CBRRA), said: "Our greatest fear as ratepayers is that the city will throw significant amounts of good money - such as R60m - in speculative redevelopment to discover that even after the removal of the constraints to business activity, the stadium remains technically unprofitable."
Stevens said the association did not object to the commercialisation of the stadium precinct, but had "very little faith" in the business plan upon which the projected revenue streams were based.
The city had yet to adopt a business model for the stadium, and work on this was being done as a separate exercise, said the Environmental Partnership.
Stevens said this process "remains opaque and we continue to suspect, given the competencies of the International Risk Mitigation Consultants who compiled the business plan, that the hidden emphasis in the business plan's terms of reference was to find a way to dislodge Western Province Rugby from Newlands rather than to find real alternatives for Cape Town Stadium".
An estimated 20 000m2 of potential lettable space for offices, restaurants or retail outlets was available within the stadium structure. The proposed commercialisation of the precinct was limited to the stadium and would not infringe on the Urban Park.
The Environmental Partnership said the remainder of the shortfall would be made up from various revenue streams, such as the development of suites, commercial parking, advertising and the development of the Granger Bay Precinct.
The development of this precinct could bring in between R27m and R98m, depending on which proposal was accepted.
There was a separate environmental impact assessment under way for the Granger Bay area but the legislation was changed last December, and the proposed redevelopment was no longer a listed activity and therefore did not require an environmental authorisation. However, the development would still need land use and heritage approvals.
Given the ongoing operational and maintenance budget shortfalls for the stadium, the city needed to find a sustainable business model that would make the precinct commercially viable.
This could only be done if the existing environmental authorisation that restricted these activities was amended.
"It is anticipated that the income generated from commercial activities will assist in reducing the annual deficit of R39m incurred by the municipality and subsequently the ratepayers. From an economic point of view, the stadium's viability needs to be improved and municipal spending on this existing facility reduced," said the report.
The draft environmental report forms part of this process.
After feedback from the Department of Environmental Affairs and Development Planning, it was recommended that two rezoning proposals should be considered - general business and a split zoning, which would allow the South Forecourt to be used for general business subzone 1, while the remainder would be for subzone 7.
While both zones would allow for commercial activity that include retail, business or office space, places of worship, a multiple parking garage, a service station, places of entertainment or hotels, the South Forecourt would have a height restriction and floor space restrictions.
Additional use rights include an adult shop subject to certain provisions.
The split-zoning was the preferred alternative, as it would be more likely to protect the integrity of the South Forecourt while allowing this portion of the precinct to become more functional.
Some of the major impacts identified in the report include the additional lighting at the stadium, potential traffic impact on event days, and future development risks associated with the South Forecourt.
The report also recommended conditions of approval, such as the use of signals on the Green Point traffic circle to cope with the increased traffic and a heritage assessment of any development on the South Forecourt.
This area of the stadium must be used as a functional open space, said the Environmental Partnership. This condition was welcomed by CBRRA. "We stress that open space is vital to the promotion of a healthy and productive society. These spaces are not fallow, wasted areas," said Stevens.
The findings of the draft environmental impact report will be available at an open meeting at the stadium on April 21, from 4pm until 8pm, with a presentation starting at 6pm.
- IOLProperty
Saturday, April 11, 2015
‘Gangsters were hired’
Manenberg, which fuelled gang warfare in the already volatile area.
If the allegations that a city-contracted construction company or companies paid gangsters for security are found to be true, the city, on a mayoral committee member’s admission, could be implicated in contravening the Prevention of Organised Crime Act.
Weekend Argus is in possession of leaked copies of e-mails and minutes of a meeting that show that, despite knowing about the matter in December, the city is still, months later, deciding how to address it.
This week police said they had received complaints from Manenberg residents about the matter, but that no formal statements had been made.
In a leaked e-mail from safety and security mayoral committee member JP Smith to other city officials, dated December 12, Smith said: “The city needs to hand over all the information they have to SAPS around the paying of gangsters by city-contracted housing contractors working on the CRU (Community Residential Units). This is a criminal offence in terms of the Prevention of Organised Crime Act and other legislation, and needs to be criminally prosecuted.
“The city is implicated in this, and we need to make a formal submission to SAPS with all the information we have.”
Smith, in the e-mail, said he had suggested the human settlements department ask the contractors to put in writing what they knew.
He also asked the Metro Police to take the submissions to the police, “so the city has fully disclosed what we know”.
Asked to comment, Smith con-firmed to Weekend Argus he had sent the e-mails, adding that he was trying to alert his colleagues to a housing issue.
This week, various sources told Weekend Argus recent flare-ups in gang violence in Manenberg were rooted in the employment of rival gang members for security by construction companies which were upgrading council flats.
Late last year, this had fuelled fighting between gangs, unhappy with their rivals taking over construction sites, and last week the already tense situation was exacerbated when a hit was put out on an Americans gangster, and his allies then retaliated.
Residents reported that machine guns were used in the fighting.
In a terse response to a list of questions from Weekend Argus about the contractors paying gangsters, the city’s mayoral committee member for human settlements, Benedicta van Minnen, said only: “The city can confirm that an investigation is under way, and the necessary actions will be taken once the outcome of the investigation has been confirmed.”
But details of what has been happening are contained in the leaked e-mails.
In an earlier e-mail from Smith, dated December 2, he said a meeting needed to be set up with the head of one of the construction companies “and the contractors working for human settlements in Manenberg about the protection money being demanded by the Hard Livings, and being paid by one of the contractors”.
Minutes from a meeting between city officials dealing with the Community Residential Units upgrades, held on February 6, were also leaked to Weekend Argus.
The minutes show that a senior safety and security official had attended.
It mentions a “dossier of alleged contraventions” involving Manenberg, and says a Metro Police head advised that a charge should not be lodged at the Manenberg police station, but that a complaint should instead be made to a senior police officer.
But the senior official advised the issue be placed instead on the agenda for when mayor Patricia de Lille had her next monthly meeting with provincial police commissioner Arno Lamoer.
De Lille was then meant to hand over the dossier for Lamoer to investigate at a provincial level.
This week, Lamoer said he did not know about the dossier, and provincial police spokesman Colonel Tembinkosi Kinana said they had not received any such dossier.
De Lille’s spokeswoman Zara Nicholson said the matter was being dealt with “by the relevant authorities”.
On Saturday, police General Jeremy Vearey, who heads up Operation Combat, the provincial police’s operation targeting gangsterism, said some Manenberg residents had complained about construction companies paying gangsters.
“But none of these reports have resulted in statements,” he said.
Vearey said if the allegations and suggestions were found to be true, it could result in charges of racketeering and corruption being investigated.
This week, Raziek Rajah of Good Hope Construction, a company working in Manenberg and which was named in one of Smith’s e-mails, told Weekend Argus that late last year its security providers were checked by police.
Rajah said his company hired employees from a City of Cape Town database that did not specify who was or was not a criminal.
- Weekend Argus
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Sunday, March 29, 2015
City Housing chaos erupts as protesters loot stalls
A mob of protesters who charged through Cape Town city centre yesterday mugged a bystander, looted vendors' stalls and vandalised property.
Hundreds of members of Ses'Khona, known as the "poo protesters", marched to the Western Cape legislature to demand that grievances about a lack of housing delivery be heard.
Ses'Khona leader Andile Lili urged the crowd to mobilise in townships and return to the city centre with 300000 people.
In St George's Mall, a man who had bought coffee was caught up in the melee and assaulted by a man believed to be a protester.
The attack was seen by The Times photographer Esa Alexander. "When the protesters came, the man with the coffee tried to run away. They got hold of him and pulled at his bag," he said.
"The man fought back and when one of the attackers pulled his bag out of his hand the victim fell to the ground. The thief ran into the crowd before the guy could get back up. It was chaos."
The protesters looted informal traders and took iron rods from stalls. They attacked bystanders, but dispersed when they were chased by police.
Police Captain FC van Wyk said one man had been arrested for possession of stolen goods from a vendor.
"We urge people to come forward with information," he said.
- Timelive
Wednesday, March 25, 2015
Zuma on being a dictator and building your own house
- Laziness would be a thing of the past;
- Idle youth would be put to work; and
- No more freebies.
Addressing delegates of the SA Local Government Association in Johannesburg yesterday, Zuma said a creeping laziness had entered South African society because "we are free" of white rule.
Zuma said he would relish a chance to rule for an extra year with absolute authority to make South Africans more productive.
"Sometimes I worry when people demand things for free, even things they can do for themselves.
"If I was a dictator, I would change a few things ...but this is a democratic country."
Zuma told a story from his time in exile in an unnamed African country.
He said he could not help but notice that the workers were going about their duties without any urgency.
When he asked why, Zuma said he was told that workers no longer saw it as necessary to work faster or harder because they were free of the white man.
Zuma said he had grown weary of youths asking for government handouts, saying they should build their own homes and acquire employable skills.
Last year, Human Settlements Minister Lindiwe Sisulu said her department would no longer provide state-subsidised houses to people under the age of 40.
Zuma also called on municipalities to hire competent staff.
"There should be no compromise in ensuring that officials have the necessary qualifications."
The president also queried the use of consultants, who cost the government more than R30-billion in the 2013/14 financial year.
He said: "If those of us who are employed to do work with specific skills now use consultants, what then are we employed to do?"
Zuma also spoke out against municipal officials who hired family and friends with no skills.
"Don't employ people because you feel for them or they are your friend or cousin. Employ people to do work," said Zuma.
- Timeslive
Friday, March 13, 2015
The RDP houses for sale scandal
Cape Town - Subsidy houses, formerly known as RDP houses, are being sold illegally for cash on classified sites such as OLX or Gumtree, leaving the beneficiaries to return to informal settlements or the street.
Often the properties are sold below market value with no guarantee that the buyers will get the title deed they need to be the legal owners.
While formal statistics are scant, the Western Cape’s human settlements department says the illegal sale of RDP housing is widespread, and difficult to prevent.
In Dunoon, for example, only four out of 10 RDP houses are occupied by the original beneficiaries.
The national Department of Human Settlements said it was illegal for the recipient of an RDP house, now known as a Breaking New Ground house, to sell it before having lived in the structure for at least eight years.
“We are of the view that RDP houses must never be sold,” said ministerial spokesman Ndivhuwo Mabaya. “They must be improved and handed over from generation to generation. Our research is that these houses are sold to satisfy short-term interest and for financial relief. This is a problem, as the (seller) either returns to informal settlements or becomes a street citizen.”
During the eight years the beneficiary may only sell the property back to the provincial human settlements department.
Most of the time the house is sold at a price that covers the debt owed, not a price that reflects the full value of the property.
The national department said subsequent buyers usually would not qualify for state housing subsidies.
Mabaya said many of the property sales were illegal, with the sellers returning to informal settlements to “instigate protests and violence at times against the people they have sold houses to”.
They were being sold to “anyone who has money”.
The Cape Argus contacted someone who was advertising several RDP properties on OLX. In WhatsApp correspondence about the advertised property, he insisted the transaction had to be cash only. Subsidies would not be accepted.
A quick search on other online classified websites showed he was selling several properties, ranging from R100 000 to almost R200 000. In some cases he specified that the houses were more than 10 years old.
Bonginkosi Madikizela, Western Cape MEC for Human Settlements, said the resale of subsidy houses was almost impossible to prevent.
“We can have as many laws as we want but this is difficult to prevent. We are giving houses to people who have nothing to put on the table. A house is not a substitute for a job. That is why people end up selling or renting their house.”
Madikizela said the eight-year restriction, or pre-emptive clause, was forcing people to sell their houses illegally or informally. This often meant the new buyers would not get title deeds or proper transfer of the property. Sales on the informal market were “impossible to police”.
In response to a parliamentary question last August, Human Settlements Minister Lindiwe Sisulu said there were no protocols to track the unlawful sale of subsidised houses. However, there was a record of cases reported to the respective provincial housing departments where the eight-year restriction had been waived.
Sisulu said the Western Cape government waived the eight-year pre-emptive right for 151 houses in the 2011-12 financial year, allowing the house to be sold after the beneficiary had lived there for two years.
In 2012-13, 389 houses were sold after only two years – 112 in the Eastern Cape, two in Limpopo and 275 in the Western Cape. The number increased to 2 852 in 2013-14, with most in the Eastern Cape. The Western Cape allowed for the sale of 154 houses after two years during this period.
Sisulu said the Eastern Cape provincial housing department reported the illegal sale of 112 houses in 2012, and 2 697 the following year.
Madikizela said the problem was widespread in the Western Cape. A recent study in Thembalethu, George revealed that out of 10 RDP houses, only one occupant was the original beneficiary. A study in Dunoon revealed only 40 percent of the RDP tenants were the original beneficiaries.
Many of the houses were being used as spaza shops.
Sisulu said in August last year the national department would conduct an occupancy audit of government houses.
“We have started auditing our waiting list in order to create the demand database to strengthen our allocation policies, to ensure that those who have benefited do not move to another municipality and benefit again,” said Mabaya.
An education campaign is to be launched next month, cautioning beneficiaries about the risks of selling their houses.
Mayoral committee member for human settlements Benedicta Van Minnen said the city dedicated “significant resources” to educating beneficiaries in financial management, basic legal advice, general home maintenance and repairs, and establishing food gardens to increase food security.
R165 000 cash, and three days later house is yours
At least seven RDP houses are listed “For Sale” on popular online advertising websites.
On Thursday a Cape Argus reporter, posing as a potential home buyer, met a man claiming to be a property developer who promised to have “the perfect house to sell”.
The man works for a company which advertises property on OLX and Gumtree.
He said he had properties in Khayelitsha, Eerste River, two in Happy Valley in Blackheath, two in Wesbank and one in Kuils River. The houses in Khayelitsha, Eerste River, Wesbank and Blackheath were RDP houses.
In an arranged house viewing visit to the house in Happy Valley, which was listed on sale for R165 000 cash, he warned about the condition of the house. “It’s not an ideal house unless you are looking into developing it and selling it later or renting it out.”
He attempted to persuade us to view the house in Eerste River, which he said was worth R400 000. “We are selling it for R200 000,” he quickly assured us.
The house in Happy Valley was semi-attached with barbed-wire fencing and two big trees in the front.
He told us: “I am a property developer. Normally a client approaches us to develop and then sell the property. But this particular client did not have money to develop the house – she just wants to sell it.”
He said the owner had a title deed and the company had received a document from the Human Settlements Department approving the sale of the house.
After viewing the house from the outside, we found that the home owner was in. The woman, who appeared to be in her fifties, said she was no longer living in the house and was renting it out.
She said she was tired of living in the area and wanted to get rid of it.
The house had one bedroom. It was empty inside except for a council rubbish bin. The ceiling needed a touch-up and the house needed repainting.
The owner left us with agent and did not take part in our talks. “The house is R165 000 – cash not subsidy,” he said. “That amount includes our transfer fees and client fees. Our lawyer takes care of the transfer.”
Once the amount was deposited into their account, the lawyer began processing the sale. “Our client moves out immediately the money is in her account and we give you a proof of transfer while the council is still processing it.
“Our lawyers and the department work very fast, it could be up to three days – but the council delays the process.”
He assured us that this was not the first time he had sold a house.
“If you guys sort your finances out I assure you, you can have the house, no hassles.”
anel.lewis@inl.co.za
- Cape Argus
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Thursday, March 5, 2015
DA questions cost of fixing RDP houses
Cape Town - The Democratic Alliance said on Wednesday that the Department of Human Settlements had spent over R2 billion in the last three years to rectify poorly-built houses sometimes at the cost of R300 000 per house. This is three times the cost of a standard house built in the Reconstruction and Development Programme.
DA MP Makashule Gana said: “At this week’s Portfolio Committee on Human Settlements we learnt that it could cost up to R300 000 to restore just one RDP house. This is three times the cost of building one from scratch.
“The presentation revealed that in the Northern Cape, R6 929 000 was spent on the restoration of just 32 houses. This amounts to R216 000 per house,” Makashule said.
“In the Free State, the department spent almost R80 million on the restoration of just 264 houses in that province. This amounts to R302 250 per house. R334 million was spent in the Eastern Cape fixing 3 123 houses at R107 000 per house - that is just over the estimated cost of building a new one.
Makashule said it would have been cheaper to demolish the houses and build new, more durable ones and that he would be putting forward questions in parliament. He called on Minister of Human Settlements Lindiwe Sisulu to provide information on:
The contractors responsible for the original shoddy workmanship;
The exact nature of the repairs that cost more than it did to build the house; and
The systems put in place to monitor the quality of house being built.
“Due to over-charging, it now seems that far less houses were fixed than would otherwise have been possible with this money,” he added.
“In any event, the need to repair so many houses across the country points to a tender process that is highly irregular. The minister would do well to focus her efforts on ensuring that the process of awarding such contracts is objective, transparent and free from, what we suspect, is undue political influence.”
- ANA
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Monday, March 2, 2015
Khayelitsha community hall burnt during protest, highway blocked
CAPE TOWN – Residents of Khayelitsha in Cape Town set fire to a community hall early on Sunday morning.
The incident follows service delivery protests yesterday, during which the N2 highway was blocked.
Community members say they're struggling to get the City of Cape Town to meet its housing commitments.
In 2013, residents of the B-M section were temporarily moved to another area, OR Tambo, after a fire destroyed their homes. They were then promised new houses in Mfuleni.
But after violence directed at the contractors in that area, the City of Cape Town put a stop to the Bosasa housing development.
“These people are angry because they can see they are not going to get what was agreed on between them and the City,” said ANC ward councillor, Monde Nqulwana.
A community member has accused the City of lying to them. “We were supposed to go to Bosasa in October. But that thing didn’t happen. They lied to us,” said Siyabulela Gifile.
On Saturday, after three children contracted food poisoning at a community event, the protests escalated and the OR Tambo community hall was set alight the following morning.
Community members are angry that the mothers of the sick children have been detained.
"They say the only thing they want is for those parents to be released so they can interact with their sick children in hospital,” said Nqulwana.
While some community members are critical of the arsonists, others feel it’s the only way to get attention.
“The best way is to burn this hall,” said Gifile.
Khayelitsha community members have now threatened to block the N2 highway for as long as it takes, and say police will have to deploy extra forces for protection.
They’re vowing not to rest until Western Cape Premier Helen Zille herself comes to meet them, and until their demands for housing are met.
- eNCA
Friday, January 23, 2015
Monday, January 5, 2015
President has a fire pool - Fuck the rest!
Party leaders, including Zuma and Ramaphosa, will start mobilising support for their rally tomorrow. The ANC uses the annual January 8 founding celebrations to outline its programme for the year in a speech delivered by the party’s incumbent president.
Zuma is expected to do walk-abouts and attend public meetings in various townships around Cape Town, including Langa, Nyanga and Mitchells Plain.
In Cape Town Zuma will be joined by 80 national executive committee members and ministers Nomvula Mokonyane and Derek Hanekom. Ramaphosa is also expected to hit the townships, but his schedule also includes door-to-door visits and mobilising campaign at taxi ranks and train stations.
“There were a lot of by-laws that we had to comply with, and we did. At first it was clear there were signs of frustration with us hosting the celebrations here. We are past those things now and we are ready for the business that has brought us here,” said Kodwa.
He said all political parties were looking to strengthen their bases, but that the weekend event had nothing do with campaigning.
- Sunday Independent
Sunday, January 4, 2015
Nkandla 11 won’t plead guilty to pending charges
Cape Town - The 11 Department of Public Works officials accused of flouting procurement procedures in relation to the upgrading of President Jacob Zuma’s controversial Nkandla homestead in KwaZulu-Natal will not settle with the state by pleading guilty.
According to the Sunday Independent, the officials, all represented by the Public Servants Association (PSA), are reportedly determined to allow the internal disciplinary hearings – set for next month - to go ahead.
Claude Naker, PSA manager, told the newspaper that the officials “do not fear anything at this stage and would want the process to continue so that they can prove their innocence”.
This comes after a 12th official, director of projects, Itumeleng Molosi, was handed a two month suspension after pleading guilty to charges relating to the Nkandla scandal.
Initial reports, as reported by News24, state that the remaining 11 officials could follow suit. The PSA has however, put this speculation to rest.
Molosi - represented by Nehawu at his hearing, served a brief spell as department of public works KZN director towards the end of the construction of the R246m upgrades of Zuma’s Nkandla residence.
Two-month suspension
At a closed hearing in Durban, Molosi admitted to failing to ensure that all Public Finance Management Act (PFMA) procurement processes were followed. He accepted a two-month unpaid suspension as part of his penalty, but with his job and pension intact.
Molosi would not comment on whether he took a deal to save his pension and referred all queries to the department of public works (DPW). But he did say that other officials implicated haven’t spoken to him since he admitted his guilt.
Another official facing sanction said the first he heard about Molosi’s deal was when it was published in City Press.
Naiker meanwhile said Molosi’s deal “surprised us”.
“As it stands, our 12 clients have all stated they are not guilty.
“Once the disciplinary hearings commence and we see the evidence, we will have a better idea [as to what our members’ options are],” he said.
He said if the DPW had strong evidence against Molosi, then his deal was “a good result” as his pension and job are still intact.
Naiker said the majority of officials face charges similar to Molosi’s.
A court application by Media24 to gain access to the process is pending.
But Media24 lawyer Willem de Klerk said nothing stops the accused officials and the DPW “from settling at any time, even though the media application is pending”.
Molosi was a member of the department’s bid adjudication committee, accused by the Special Investigating Unit (SIU) of financial misconduct and irregular expenditure.
The SIU found that Molosi approved a “negotiated procurement strategy” instead of an open tender system by which tenders are advertised.
- News24
Tuesday, December 30, 2014
Hawks not investigating Nkandla: spokesman
Police on Tuesday dismissed reports that suspended Hawks boss Anwa Dramat was asked to provide information about the Nkandla investigation to police commissioner Riah Phiyega.
"Phiyega and... Dramat never discussed the Hawks' investigations into Nkandla," said the elite police unit's spokesman Captain Paul Ramaloko in a statement.
"The Hawks is not investigating the Nkandla matter."
Instead, said Ramaloko, the National Investigation Unit, under Lt-Gen Vinesh Moonoo, was looking into the R246 million spent on upgrades to President Jacob Zuma's private homestead in Nkandla, KwaZulu-Natal.
On Tuesday, Democratic Alliance MP Dianne Kohler Barnard said her party believed Dramat's suspension -- ordered by Police Minister Nkosinathi Nhleko on December 23 -- was linked to Nkandla.
"The suspension of General Dramat came the day after he focused on the Nkandla files... She [Phiyega] has demanded that General Dramat hand over the files on Nkandla," she said in a statement.
Kohler Barnard said she had heard allegations that Phiyega had asked for files on a number of other high-profile investigations, including one into alleged fraud involving Northern Cape ANC chairman John Block, and another into alleged corruption between MECs and businessman Toshan Panday in KwaZulu-Natal.
Ramaloko dismissed these claims, saying: "At no point did General Phiyega request Lt-Gen Dramat to submit any files to her."
Earlier, during an interview with Radio 702, Dramat's advocate Johan Nortje mentioned Nkandla as a possible reason behind the suspension.
"One has to look at the timing of the so-called suspension out of the blue... It's exactly the time when the KZN investigations, and obviously the Nkandla investigation are at a very crucial point," he told the broadcaster.
"It's quite clear that there are politics that are involved here."
Nortje said the reason given in a letter by Nhleko and Phiyega for Dramat's suspension -- that he was facing allegations into illegal rendition of Zimbabweans in 2010 -- was "baseless".
He said a report into the matter had cleared Dramat months ago.
Nortje said that, according to a recent court ruling, the suspension was unconstitutional.
"The most important aspect of the Constitutional Court judgment on November 27 is that the suspension clause has been deleted."
Yet, said Nortje, "10 days later, the minister used that suspension power".
The ruling was part of a larger judgment dealing with the constitutionality of legislation to establish the Hawks.
The court found certain defects in the laws -- such as the "untrammelled" power given to the police minister to dismiss the head of the hawks --had to be "severed".
Dramat's lawyers have given Nhleko until January 5 to lift the suspension.
- Timeslive
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