City responds to regretful misinformation by MEC Maile
28 June 2019
Yesterday, I noted a statement by the MEC for Human Settlements, Urban Planning and COGTA, Lebogang Maile, pertaining to his intention to withhold the City’s Human Settlements Development Grant (HSDG).
I have sought an urgent meeting with the MEC to not only provide assurance to him that work is in progress but to also correct a number of misstatements.
It is unfortunate that the MEC has elected to address this matter in his chosen fashion.
Not only have a number of the MEC’s concerns been addressed with his predecessor on the 24th of January 2019 – the recordings of which I am happy to provide the MEC on his request – but engagements have also been on-going between officials in the City and the province.
Initially, the City had been allocated R249 million for the purpose of subsidising 595 RDP units, 1385 service stands and 400 CRU per the provincial gazette.
Provincial Government later adjusted this amount downward to R68,9 million during their adjustment period without sufficient reason and without legal cause.
Following consultations between the City and Province, an agreement was reached in November of last year which resulted in R204 million being re-allocated to the City for the achievement of 1200 units and 548 CRU’s.
As a result of provincial government’s failure to timeously remedy this matter, the City was left in a period of uncertainty lasting close to 4 months where province had not transferred the agreed upon allocation, frustrating service delivery.
To date, the City has spent R57 million of the R204 million allocated to it. This has yielded 414 foundations and 99 wall plates and translates to 28% expenditure and a balance of R147 million.
Given current progress, all projects should achieve the expected yield of accommodation by the end of the 2019/20 financial year.
At the heart of the concerns raised by MEC Maile is the perception that no work is currently taking place at the projects in areas such as Lufhereng, South Hills and Vlakfontein West Lehae.
Nothing could be further from the truth.
In the first instance, the City has already made commitments to spend the allocated budget. Over and above this, our appointed developers and contractors have been working at scale to deliver at the requisite projects.
A report to that effect has been provided to the MEC in order to address his misguided concerns.
Furthermore, I have instructed officials to provide copies of contracts signed with developers to the provincial government.
In addition, I am informed that the contractors are in the process of obtaining Quality Assurance approvals from the GDHS.
These projects are awaiting province itself to complete this process in order for delivery to be affected.
For work that has been certified, contractors will be submitting claims between 27 June 2019 and 15 July 2019 and the allocated budget will be spent.
Current claims submitted and under assessment amount to R92 million, over and above what has already been paid to our contractors.
The City maintains its view that the GDHS should allocate and transfer the HSDG funding as agreed as the City has developers, contractors and a panel of contractors appointed to deliver all required units by the end of the 2019/20 financial year.
With regard to the proposed tripartite agreements, the City maintains the view that these are no longer necessary.
At the time, during the 2017/18 financial year, the City was experiencing challenges with the appointment of contractors and payments for work completed. Following meetings between all three spheres of government a payment plan was agreed to and the City has not defaulted on that plan.
We have made great progress with regard to debt owed to suppliers as well as the appointment of contractors which has mitigated against any need to enter into tripartite agreements with the GDHS.
As a City, we remain committed to acting within the best interests of our residents – this includes addressing our City’s inherited housing backlog which has left many of our residents without a place to truly call home.
There can be no room for political point scoring in the realm of service delivery. In the end, only residents will suffer. It for this reason that the MEC’s comments are deeply ironic given his unbridled attack on political parties within the City while claiming to be non-partisan.
Indeed, over the past few weeks, the MEC has been on a one man crusade against the City of Johannesburg.
It seems it is the mandate of Gauteng MECs for Human Settlements, Urban Planning and COGTA to frustrate the operations of the City for the political ends of the ANC.
In any event, in the interests of doing what is best for our residents, maintaining inter-governmental relations as espoused in the Constitution and engaging the Province total good faith, I have also requested that Premier David Makhura should chair a meeting between the City and MEC Maile’s office so that resolutions may be made by the highest decision makers both within the City and the Province.
We must state categorically that we are not prepared to allow the interests of the residents of the City to be sacrificed to satisfy political agendas.
While we will make every effort to engage with the province in good faith, should these efforts be frustrated, we will not hesitate to take legal action to protect the interests of our residents.
Issued by Olebogeng Molatlhwa, Acting Spokesperson of the Executive Mayor, 30 June 2019
