705 N2 units ready, Only 11 families told

The first 705 units of the N2 Gateway project may be ready for occupation, but only 11 families have apparently been told by the City that they qualify to move in.

Seth Maqetuka, the City’s human settlement director, said that of the 200 candidates who had applied for accommodation, only 11 families would be able to afford the R300 to R500 monthly rental.

When contacted on Sunday for confirmation, Maqetuka said: “Yes, those are the facts.”

‘We must remember that everything on the N2 Gateway is a pilot project’

But ANC councillor Xolile Gophe said this figure of 11 families sounded “ridiculous”.

Gophe said the City had already sent out 200 letters to candidates drawn from various housing lists and that 150 had responded.


“We must remember that everything on the N2 Gateway is a pilot project and things are bound to change.”

He said the allocation split of 70 percent for shack dwellers and 30 percent for backyarders “was not set in stone”.

Backyard dweller organisations warned last week that there would be potential chaos when people did eventually move into the units.

They had appealed for a 50/50 allocation split that would give more backyarders an opportunity to qualify for housing.

Gophe said government stakeholders would meet today about the allocation policy.

“This is the first time we will know about the allocation. We have not yet received the report (that refers to the 11 families who qualified).”

Local government and housing MEC Richard Dyantyi confirmed that a consultative allocation process was taking place in the form of workshops.

“We are also acknowledging the fact that the process is not as fast as we would like it to be. We might not be talking numbers for now, as we still have the majority of families to be taken through the process, but we are committed to speeding up the process in the next two weeks so that we can come to the final stages of allocation.”

Dyantyi said a consortium of independent auditors was working on the City’s housing list.

Gophe said it was a “given” that not everyone on the waiting lists would be able to move into the settlement.

“In Joe Slovo there are more than 6 000 families. The 705 units are just a drop in the ocean and not everyone will benefit.”

An estimated 250 000 families are currently affected by the housing backlog.

The national housing department announced last week that the second phase of the development, which has already started, will be run entirely by Thubelisha Homes.

Existing Joe Slovo residents will be relocated to 1 400 temporary units at Delft during the construction of the next set of units.

o This article was originally published on page 4 of Cape Times on June 05, 2006

N2 Gateway claims threatens housing project

Contractors have threatened to bring claims amounting to more than R100-million against the city for mismanagement of the N2 Gateway housing project, says Democratic Alliance councillor Neil Ross.

“And the R35-million overrun in building the top structures are costs that council will also have to pick up.”

These revelations emerged during Thursday’s heated debate in full council about a recommendation to slash the N2 Gateway’s capital budget from R317-million to R86-million.

The city could still be liable for claims and overrun costs

While the management of the N2 Gateway was transferred from the city to the province and Thubelisha Homes in February, the city is still responsible for the funding and monitoring of bulk infrastructure.

Ross said that while this transfer was done shortly before the March 1 local government elections, the city could still be liable for claims and overrun costs of more than R35-million.

“We were given R80 000 per unit for the top structures, but they cost between R125 000 and R140 000. Who is responsible for this?” Tozama Bevu of the African National Congress (ANC) said the project was handed to the province “because they were the best to run it”.

Housing Minister Lindiwe Sisulu said in parliament last week that 22 000 houses would be built within the next three years. Housing MEC Richard Dyantyi said earlier that construction of the next phases was already under way.

But Ross said Thubelisha Homes indicated at a recent presentation that the N2 Gateway project would take at least six years to complete.

National government wanted to change the facade of the N2

“It should have been done by December 2006, but only 10 percent has been completed,” said Ross.

Ross said tender irregularities for the N2 Gateway project had cost the city more than R12-million. “Cyberia Technologies tendered for R5-million but were paid R12-million. Where did the extra R7-million come from?”

Vincent Bergh of the African Christian Democratic Party accused the ANC of shrouding the N2 Gateway project in secrecy.

“The real reason for the N2 is because national government wanted to change the facade of the N2 between Cape Town and the airport before 2010.”

He said the ANC ignored the City’s “competent in-house staff” and opted instead to appoint consultants.

But Bevu said the former ANC administration terminated Cyberia’s contract.

“It is nonsense that the N2 was done in secret.”

She said the N2 Gateway was proof the ANC was delivering. Ross said the allocation of units, “promised to every one and his wife”, had created unrealistic expectations that were compounded by the “political meddling of the former executive mayor (Nomaindia Mfeketo)”.

Dan Plato, mayoral committee member for housing, said: “There have been lots of problems with the funding of the N2 and lots of mistakes have been made.”

He said he would meet today with stakeholders for a status report on the project.

“The multi-party government is not happy with this project. It has cost the City at this point millions of rands already.”

Xolile Gophe of the ANC rebutted these allegations, saying: “There is no problem whatsoever as far as the N2 Gateway is concerned.”

“We must learn from the N2 that we can build houses in a year,” said Bevu.

* This article was originally published on page 3 of The Cape Times on June 02, 2006

Backyarders warn of ‘chaos’ in Cape

As D-day for the occupation of homes in the N2 Gateway Project nears, backyard dweller organisations from Gugulethu and other areas are raising concerns about the allocation criteria, and are warning of potential “chaos” when people start moving in.

Mncedisi Twalo, head of the Gugulethu Backyarder’s Association said the backyarders from Nyanga, Philippi and Langa had met with Cape Town mayor Helen Zille, director for human settlements Seth Maqethuka, mayoral committee member for housing Dan Plato and city housing official Basil Davidson on Monday.

“We demanded an explanation about the allocation,” said Twalo.

“Province is in charge, but our questions are related to the criteria.

‘The backlog increases because of the influx of people and young people are also growing up’

They are talking about giving the houses to people earning R3 000. People being interviewed don’t qualify because they earn less than R3 000.

“And this 70 percent shack dwellers and 30 percent backyarders criteria, where does it come from? It’s painful for backyarders.

“We’re not happy, we want 50-50. The people being given 70 percent only arrived in Cape Town now and we have been living in backyards for years.

“Now we have to tell this news to the masses. It’s going to be chaos,” said Twalo.

He said the housing backlog was being politicised.

“There is also Zille’s pilot project for backyarders in Grassy Park. When they invaded land they were removed, but within 72 hours they had been given back their material and a parcel of land,” he said.

“Treatment is not the same. It’s excluding us. They tell us about other projects like the Mau Mau Project, but they are not getting implemented. It’s still in the pipeline.

“Bear in mind the backlog increases because of the influx of people and young people are also growing up.”

The housing department’s response was that the allocation stays. - Cape Times

Cape coffers bulging as R1bn lies unspent

Against a backdrop of a transport crisis, a need for more housing and services, and greater job-creation and poverty relief efforts, it emerged at Monday’s Mayco meeting that by the end of April, city departments had spent just R928,7-million, leaving R992,1m-unspent.

Excluding the R408,6-million spending shortfall on the N2 Gateway project, the major shortfalls occur in roads and stormwater (R106-million), transport (R93.3-million), housing (R81-million), electricity (R78.3-million), water (R69.5-million) and social development (R44-million). - Cape Times

Politics not enough to tackle the challenges we face

Yesterday morning, in what we sincerely hope becomes a watershed moment for the city, premier Rasool addressed some 100 prominent business, religious, academic, media, sports, community and labour leaders.

He did so flanked by Zille and Richard Dyantyi, MEC for local government and housing, in the context of a frank admission that “political leadership may not be enough to tackle the challenges we face”. - Cape Times

Housing project slow says Cape shack dwellers

Residents and backyard dwellers of Langa on the Cape Flats have voiced their dissatisfaction with the slow pace of the allocation of houses at the N2 Gateway housing project.

The would-be beneficiaries are part of thousands of residents of the Joe Slovo informal settlement whose shacks were destroyed by devastating fires two years ago. Initially, the victims were scheduled to move in by the beginning of this month.

Xolile Gophe, the area’s ward councillor, says the contractors will have completed the construction of phase one of the project by the end of this month. He says the developers would be moving out of the site soon, and the first batch of people should be taking occupation by the end of June. - SABC

Relief for slum dwellers after R181 million pledge

Slum dwellers received a golden handshake today when government pledged R181 million towards housing. This was announced at the start of a three-day International Slum Dwellers Conference in Cape Town. About 22 countries are discussing strategies to eradicate slums through partnerships.

Lindiwe Sisulu, the housing minister, pledged a whopping R145 million towards the non-profit organisation - “The Federation of Urban and Rural Poor”. The money will be used to build houses in five provinces, but that was not all. Another R36 million was promised to the Western Cape housing department.

Sisulu says they have five provinces that are collaborating because they have a very strong presence of global associations, and therefore have given each a thousand subsidies. A well-known international organisation attending is the NGO Slum Dwellers Initiative (SDI). They are actively working towards alleviating poverty and homelessness around the world.

Trying to change world govt mindsets
Jockin Arputham, the SDI president, says the conference it is not only a talk shop, but to do an overview of subsidies and delivery. Solutions reached here will be discussed at an international slum conference in Canada, later this year.

The objective of the three-day conference is to teach a new mindset so that world governments can help uplift poor communities, the poverty-stricken should still strive to change their own circumstances. - SABC

Housing horrors…

QUESTIONS asked by irate residents about housing in the Western Cape at a meeting last weekend, had the minister of local government and housing, Richard Dyantyi, casting around for answers.Dyantyi addressed residents from Guguletu, Nyanga and Philippi on certain matters, especially the many backyard dwellers in those areas.

From the outset he made it quite clear that the provincial government was aware of the lack of confidence because previous promises had not been met.

According to him the provincial government is doing everything in its power to relieve the shortage of housing.

“We have already referred ten projects to the special investigating unit after allegations of financial irregularities. One person has appeared in court in connection with alleged corruption and three others may follow soon.”

Dyantyi said he was aware before the meeting that residents would be upset, because many of them have been waiting for houses for years.

“The fact that they are upset is therefore understood and fair.”

In spite of expecting criticism he was still caught unawares by the strongly worded dissatisfaction of Galiema Messiah of Heinz Park.

“You will probably have noticed that those present have no respect for you. That is the result of the actions of the housing council that has treated us like rubbish.

“We see them today and then we never hear from them again. I have been hearing the same old stories for the past four years.

“Where were you last night (Saturday) when we had to run around to find buckets and dishes to keep water from flooding our leaking houses?”

Messiah said there are rumours that the contractor who had been appointed to build units in Heinz Park had disappeared with the money.

She was not the only person who was upset.

Desmond Ntlabati (36) who lives in a hostel in Guguletu, also had very little sympathy with the minister.

According to him, the hostel is not fit for human occupation. The drains are blocked and rubbish is piling up all over the place.

“Children and the elderly are becoming ill in the place. Even a frog will not live long in the water.”

At the end of the information session Dyantyi promised residents that houses and units that have not been completed, would be built and that those who qualify for a housing subsidy, would receive it. - City Vision

Govt, private sector commits to housing delivery

The Northern Cape housing department says the signing of the provincial housing social contract will commit it to effective housing delivery.

The social contract will be signed by the department, financial institutions and the construction industry in Kimberley later today.

Bronwyn Thomas, the department spokesperson, says the agreement will see stakeholders dedicating themselves to work to improve informal settlements and provide adequate shelter for the homeless.

Thomas says they are going to commit themselves by pledging in writing and by signing a contract that they are going to work towards repeatedly improving and speeding up the delivery of housing in the province. He says whilst the idea is to speed up housing delivery the emphasis will be quality delivery of houses in the province. - SABC

Home finance boost for ‘high risk’ group

People earning between R3 500 and R7 000 a month, long seen as a “high risk” group, will now be able to access housing finance after a “groundbreaking” agreement signed between the City of Cape Town and three major banks.

Mayor Helen Zille signed the deal with Absa, Nedbank and Standard Bank at Tafelsig, Mitchell’s Plain, making Cape Town the first city to have such an agreement in place.

The agreement stems from the commitment made by the financial sector under the Financial Services Charter last March that they would invest at least R42-billion in this market by December 2008.

‘I hope we make it work’

Zille said the agreement meant banks would be involved in all housing subsidy developments across the city and would further help eradicate the province’s housing backlog.“If we make it work in five years, I hope we do not have to have a waiting list of 200 000 people. I hope we make it work,” she said.

In terms of the agreement, potential buyers will have to pay a deposit of up to 10 percent, and the government can give these buyers a 50 percent subsidy on the deposit. Monthly payments may be up to 25 percent of income for a period of up to 20 years.

The payment methods will be structured in accordance with personal financial commitments and affordability levels.

The launch venue in Tafelsig is expected to be one of the first housing projects to benefit under the scheme.

The project is expected to develop 1 800 units in three years.

Standard Bank’s Linda Sing said research showed a 625 000 shortfall in the Financial Services Charter target of housing for between two and four million South Africans.

Nedbank regional director Anthony Costa said they were acutely aware of the shortage, particularly in the low income market. - Cape Argus

Dyantyi & housing corruption

Tensions ran high at the Gugulethu Sports Complex on Sunday when Local Government and Housing MEC Richard Dyantyi addressed a public meeting on the scale of corruption in the Peoples Housing Process (PHP).

The meeting was also attended by provincial government and City of Cape Town housing officials.

Dyantyi spoke about corruption in the PHP projects after receiving numerous complaints from beneficiaries.

He also spoke on the “burning issue” of backyard dwellers, which was a contentious topic at the meeting.

Focus its investigation on the failure of service providers

Dyantyi made a request to the Special Investigation Unit and Directorate of Special Operations (Scorpions) in April, asking it to focus its investigation on the failure of service providers to comply with contractual requirements.

He also asked the Scorpions to investigate the unlawful and unauthorised payments, made by the accounts administrator, of state subsidies in the development of low cost housing.

Addressing the packed hall, Dyantyi said the problems in the PHP projects had been identified and were being investigated.

“It is clear that the problems (of corruption) are rooted here in government. That’s where everything begins,” said Dyantyi. “The money stolen runs to hundreds of thousands, it’s your money. But if you want to direct your weapons to someone, you must direct them to me.”

He said that at meetings held in a number of communities, people had protested about the slow pace of delivery.

They are all marching for the same reason

“Everyone is marching in Khayelitsha, Nyanga and Mfuleni and they are all marching for the same reason,” he said.

“At one meeting I was told by the people that we’re doing this for ourselves …, but then government comes and messes up everything.

“People have subsidies, but when they go to inquire at the housing offices, they are told that there are no more subsidies Why? Because ‘ooclever’ (swindlers) took it.”

The department is also to investigate allegations that a former ANC ward councillor took money from Mandela Park residents in return for houses.

The man, whose name is known to the Cape Times, allegedly took the money from more than 50 people and gave them receipts.

“Another problem is the constant changing of committees. Funds go missing. Where have you ever heard of loans in subsidy money? I’m talking about your leaders who march with you when you are marching,” said Dyantyi.

Gugulethu resident Ruby Twayi asked why beneficiaries had to account to committees.

“We’re living in pain. One has to be in good terms with these committees,” said Twayi.

Another affected PHP beneficiary, Nosiphiwo Matyeba, said: “Why do we join the PHP if we have to end up buying our own building material?”

On backyarders, Dyantyi said authorities had been biased toward shack dwellers.

“We also need to understand the anger of backyard dwellers. We must be balanced and not biased,” said Dyantyi.

Mncedisi Twalo, chairperson of the Gugulethu Backyard Dwellers, said there was “no truth” in what Dyantyi said.

“Dyantyi knows that, at the end of the month, people will be moving into the N2 Gateway but there are no criteria. The relevant people (to address these issues) are Helen Zille and Basil Davidson, not these puppets.”

Responding, Dyantyi said: “There is no Zille here. I called this meeting as housing MEC. You can’t go to a Zille meeting and call for Dyantyi.” - Cape Times

Cape shack dwellers face miserable winter

More than 3 000 houses are standing incomplete in Khayelitsha for almost six years now, and with the wet and cold Western Cape winter season already here, scores of shack dwellers’ hopes are dashed.

Government has been channelling funds through community projects to see to housing needs. But community members disliked the small, matchbox-like houses. They have decided to establish a single fund from government subsidies and personal funds. Now funds have been misappropriated and corruption abounds.

Many houses commissioned in the late 1990s under different projects are still half-done. Most of the unfinished houses are now being vandalised.

Government to assist the afflicted
Richard Qubudile Dyantyi, the Western Cape housing MEC, says besides the legal interventions that have been instituted, his department will help those who have been victims of fraudulent contractors.

Over this weekend, Dyantyi will be accompanied by his department officials, councillors and officials from the city of Cape Town to meet communities from Guguletu, Nyanga, Phillipi and backyard dwellers to address matters related to housing in general. - SABC

Gateway fiasco - lets not build like this

Gateway ‘could be delayed by five years’

Completion of the N2 Gateway housing development, scheduled for December, could be delayed by at least five years, while the City of Cape Town will have to pay an outstanding R34-million for the units already built.

This was said on Monday by Neil Ross, chairperson of the City’s housing portfolio committee, who said he had been informed by Thubelisha Homes - the section 21 company appointed as project managers in February when the provincial housing department took over the project from the City - that “unless extra money comes from province, the projected finish time for the project is five years from now”.

In June 2005, the City’s audit committee said the total N2 Gateway project would cost R2,3-billion and that 22 000 residential units would be completed by December 2006.

Dogged by financial problems

“The major problem is with the construction of the flats,” said Ross. Instead of costing the projected R80 000 per unit, each flat’s top structure cost over R120 000. “Council will have to pay for this overrun.”

These shock revelations come soon after the call, made earlier this month by the housing committee, for an urgent forensic audit into the awarding of a R12-million contract for N2 Gateway to Cyberia Technologies.

Although Cyberia’s contract was terminated in January, former city manager Wallace Mgoqi approved the allocation of an additional R4-million to the firm, without referring the matter to council.

Ross said the request for an urgent forensic audit into this closed bid had been sent to the executive mayoral committee (mayco).

He said the extended contract period “gave light” to concerns that the N2 Gateway project has been dogged by financial problems.

First handover a year later than scheduled

In November last year, the Cape Times received a copy of confidential correspondence sent by Vula Joint Venture, one of the consortiums contracted by the City to the N2 Gateway management project, referring to a meeting where the City admitted to funding shortfalls.

It read: “The City advised that as a result of cash-flow problems which existed, relating to the funding of the N2 Gateway Projects, it was necessary to review the projects… currently in progress.”

Ross said revised figures for the project, incorporating the new time frame set by Thubelisha, were not yet available.

Vusi Tshose, spokesperson for Western Cape Local Government and Housing MEC Richard Dyantyi, said the first families would move into completed units at the Joe Slovo informal settlement at the end of May.

This is nearly a year later than the initial handover date scheduled for June 2005.

A senior councillor who declined to be named said it was unlikely these families would move in this year, as the location of the development and suitability of the land was being investigated.

Tshose said work on the next phase “was already happening” but could not comment on Thubelisha’s five-year prediction for completion of the Gateway project. - Cape Times

Cape Town turmoil - Province steps in

The Western Cape government is taking seriously a request by African National Congress councillors to have Cape Town placed under provincial government administration and is forcing Democratic Alliance mayor Helen Zille to account for the continuing political strife in the council.

Local government and housing provincial minister Richard Dyantyi gave Zille until Wednesday to present her side of the wrangling over Wallace Mgoqi’s contract as city manager, after a petition by the ANC last week…

Dyantyi’s spokesperson, Vusi Tshose, said the provincial minister was “concerned”, but did not elaborate on what steps would be taken. “Service delivery may suffer because people are focused on the dispute,” he added. - M&G