Today, 24 January 2019, I held a meeting with the MEC for Gauteng CoGTA and Human Settlements, Dikgang Uhuru Moiloa, regarding the reduction of the Human Settlements Development Grant (HSDG) for the City of Johannesburg.
Over the past few months the City and the Provincial Department of Housing have been locked in an ongoing dispute regarding the redemption claims that must be sent to the Provincial Department of Human Settlements in order for the Province to release our HSDG funding.
This was soon followed by the publishing of a provincial gazette which unexpectedly reduced the City’s Human Settlements Development Grant (HSDG) funding by R180 million for the current financial year.
The City had previously been informed that our HSDG funding would be in the region of R248 Million on the basis of the City’s Department of Housing’s business plan, which was adopted by Council and ultimately the Province. Following the publication of the Province’s Gazette, this was reduced to R68 million – which was insufficient to meet the desperate housing needs of our residents.
The City sought the assistance of South African Human Rights Commission and National Treasury in order to have the matter resolved in a manner which ensured continued service delivery whilst avoiding litigation which would have cost taxpayers. Following engagement with national government, the provincial department of Human Settlements agreed to a consultative process to finally resolve the matter.
The City’s sole interest has always concerned itself with delivering housing to our poor residents, which why we have sought to do all that is within the our power to engage the different spheres of government in good faith and deliver much needed housing to our residents.
Following today’s engagement, the City and the Department have agreed to the following:
• Province is to publish a special gazette re-allocating R67 million for the South Hills Development to the City;
• R68 million is to be rolled over by the Province to the City in the current financial year, which has been approved. In addition, the City still will retain the almost R69 million which was announced in the in revised gazette published last year;
• Province has agreed to honour its commitment in terms of the tripartite agreement for the Riverside development, in the current financial year, to the tune of R63 million; and
• In addition, R33 million is to be honoured by Province with respect to the Fluerhof Development in line with an agreement with the contractor to build high-rise units.
This will take Province’s financial commitments to R300 million for housing developments in the current financial year within the City.
I would thank MEC Moiloa for today’s productive engagement and for seeing reason following our representations on the matter. In so doing, the MEC has worked with the City in ensuring that we maximise the delivery of housing for the poorest and most vulnerable of our residents. I am heartened by the fact that this matter could finally be resolved and that we could work cooperatively in ensuring that we provide the dignity of housing to residents.
Cllr Herman Mashaba
Executive Mayor
City of Johannesburg
Media queries:
Luyanda Mfeka
Director: Mayoral Communications
Office of the Executive Mayor
City of Johannesburg
Tel: 011 407 6727
Cellular: 076 171 5978
Email: luyandam@joburg.org.za
