The City of Joburg and City of Tshwane fail to spend, contract and account on Human Settlement Developments

Department of Human Settlements



On the second of August 2018, at the Gauteng Department of Human Settlements Budget Lekgotla, the City of Johannesburg (CoJ) under the stewardship of Mayor Herman Mashaba failed to account for over R 382 854 894 R 134 628 297 that was transferred to the City. Further engagements with the CoJ initiated by GDHS took place on the 16 January 2019 and the initial figure of R 382 854 894 was reconciled to R 134 628 297. Furthermore, the CoJ failed to account for the 2015 housing units that were meant to be delivered. These units were to be delivered in Fleurhof, South Hills and some in Riverside View and Lufhureng, due to failure by the CoJ to pay contractors.

As a caring provincial government and despite all these challenges, the Gauteng Department of Human Settlements (GDHS) continued to engage the CoJ on their failure to deliver housing to Joburg residents. For instance, the Riverside View and non-payment of contractors, the GDHS needed to redeem some of the completed units and the Department elected to pay for the delivery of outstanding units directly.  As a result of the failure by CoJ to pay contractors, the GDHS decided to take over some of the projects in Riverside View and Fleurhof, so as to ensure that service delivery is accelerated and that our people’s needs are taken care of. The GDHS cannot afford a situation where citizens of the City are disadvantaged, hence our decision to step in and deliver on the HSDG grant.

The GDHS reserves its right not to use CoJ as an implementing agent due to non-delivery.  There are outstanding bills on bulk infrastructure of R400 million to Calgro by the CoJ which are yet to be paid by Mayor Mashaba’s administration. As a result some projects cannot be completed. A similar scenario is unfolding in the City of Tshwane (CoT) where there are over R381 million outstanding redemptions by the CoT on projects that the GDHS transferred money for. To date, the CoT is unable to provide any evidence of work completed in line with the allocated funds. The CoT currently owes the GDHS and residents 2783 housing units.

However, the CoT did write to GDHS to reallocate the HSDG funding to other housing projects as they were unable to deliver. The main problem with both CoJ and CoT is that as much as the CoJ and CoT received the Human Settlements Development Grants (HSDG) from the Province, by and large, both municipalities are still besieged with problems of failure to spend, contract and account for work done or not done. This failure has had a massive impact on the CoT residents as they are negatively affected by the non-delivery of housing units in their municipality. For instance, in some areas such as Rama City, Nelmapius, Olivenhoutbosch, Kekana Gardens and Shoshunguve Ext 19 the CoT is failing to spend even on bulk infrastructure to build human settlements.

 Given the integral nature of both municipalities in delivering human settlements to Gauteng citizens, the GDHS is unable to bring projects to practical conclusion, which will then provide citizens with security of tenure in the form of Title Deeds.

At a local government level, both the CoJ and CoT must own up to their systematic failures and incompetence that leads to the short changing of our people, who are desperately in need of housing.  We also want to discourage the emotive issue of housing provision for narrow political point scoring. It is our responsibility as government, across all there spheres of our respective administrations, to make sure that our people are not turned into a political football en-route to the 2019 general elections.

Mayor Mashaba in his letter to the President of the Republic has exposed the fact that he does not know how a municipality operates. His ill-advised administration has led to the City losing money to the fiscus, to the tune of almost R400 million, particularly for his administration’s failure in spending the allocation of Urban Settlements Development Grant (USDG). This further suggests that Mashaba wants to reduce Government to a game of politics and play with people’s emotions in a selfish way, a desperate attempt to absolve himself of blame that he should be shouldering.

In the same letter Mashaba released addressed to the President of the Republic, which should have been governed by protocol and Inter Governmental Relations policy and confidentiality, the Mayor has failed to indicate to the President that the CoJ is continuously declining in its performance on the delivery of integrated human settlements. The Mayor needs to speak with honesty, the reality is that the CoJ’s USDG allocation is likely to be cut even further for non-performance in an area exclusively controlled by the City.

Since the inception of the current administration, GDHS has made numerous attempts to solicit cooperation from the CoJ and the Mayor hasn’t been forthcoming because he has avoided to account to the Province for the money that has been previously given to the Joburg Metro. The CoJ has even failed to appoint contractors where money is available and they have also failed to pay those that have been appointed. This is indicative of an administration that has collapsed, in a very strategic metro that over time has been the benchmark of good performance.

In the last meeting held between the Mayor, Premier and MEC of GDHS, Mayor Mashaba did not raise the issues contained in his letter to the President of the Republic. However, he now conveniently brings up such spurious allegations for the attention of the President, because he knows where the blame lays and he would not have been as opportunistic as he is when he penned the ill-informed letter to the President.

Written by Gauteng Human Settlements MEC Dikgang “Uhuru” Moiloa in his capacity as the political head for housing delivery in the Gauteng Province. ​

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