ALTHOUGH the continuous allocation of grants for free housing to the "poorest of the poor" is unsustainable, it will remain in place as long as the challenges of unemployment, poverty and inequity exist, Human Settlements Minister Tokyo Sexwale said on Wednesday.
Delivering his budget vote speech in Parliament, Mr Sexwale said providing grants for free housing was a programme driven by the "triple evils" of unemployment, poverty and inequity.
"For as long as this is the case, so long shall this programme remain because we as the African National Congress government are committed to the poor and shall not abandon them through no fault of their own," he said.
The government has been struggling to address the Reconstruction and Development Programme housing backlog of about 2.1-million units. In 2011, Mr Sexwale said the answer to all housing problems lay in having a growing economy, where people had jobs and could access finance.
In Parliament on Wednesday, he said that given South Africa’s socioeconomic circumstances, the most optimal and practical human settlements strategic approach was that of the enhancement of the Finance-Linked Individual Subsidy Programme.
The programme provides a one-off down payment to qualifying households that have secured first-time mortgage finance for a residential property.
"It is noteworthy that the assistance we provide to our citizens in this regard — black and white — empowers them to become real-estate owners; to become real participants in the capital markets as asset owners; real players in the property market as sellers or buyers; as well as (real players) in the financial markets where they can borrow against their assets to advance other economic interests," said Mr Sexwale. "The need, therefore, to speed up the issuing of title deeds to home owners can never be more emphasised."
He said a comprehensive housing strategy for the poor, for the gap market — the gap between homes supplied by the state and those delivered by the private sector — and for middle- to high-income earners was in place.
"The main focus of our housing delivery strategy remains the poorest of the poor, many of whom are in and around informal settlements," Mr Sexwale said.
The minister also said his department had over the past four years, delivered, through grants, more than 750,000 houses and housing opportunities.
Mr Sexwale took a swipe at government entities and municipalities that failed to "even build a simple toilet".
"It is totally unacceptable that although we provide funds, responsible government entities and certain municipalities fail to even build a simple toilet while there is a serious stench of the bucket system in some parts of the country," he said.
"Where they are built, some are left uncovered such as in the recent scandalous cases in Makhaza and Moqhaka, in the Western Cape and Free State, respectively, even prompting the Human Rights Commission to get involved."
He said the department’s response of taking away funds from poor performers, as required by the law, would continue but this was inadequate.
"Capacity issues need to be addressed. Most importantly, political parties must ensure that their deployees are capable — and there is nothing the matter with cadre deployment. In turn such deployees should select appropriately qualified employees for the public service," the minister said.
Democratic Alliance human settlements spokesman Stevens Mokgalapa said on Wednesday that the department under Mr Sexwale continued to underperform. He said the department had underspent about R4bn of its budget last year. "The Eastern Cape and Limpopo are two major culprits and together have failed to spend R578m of the funds allocated to them."
He added: "Informal settlements continue to mushroom at an alarming rate throughout South Africa and the department has failed to reach its upgrade targets. Poor planning, lack of capacity, alignment, co-ordination and infrastructure are just some of the departmental issues prohibiting public opportunities to housing access."
Mr Mokgalapa also said sanitation continued to be a problem. A report published on the department’s website earlier this year revealed that the sanitation backlog stood at 2.5-million toilets.
"Minister, sanitation is your legacy," he said. "We are still awaiting legislation from your department regarding the mandate of sanitation and want to know how many more people should die, children get sick, or Human Rights Commission recommendations and reports be brought to the government before you act on this important national issue? The Human Rights Commission in essence is doing your job, Minister."
