City, province in spat
Row erupts over funding for housing
A SPAT has broken out between the DA-led City of Joburg and the ANC-led Gauteng province over the funding of houses. The DA has accused the province of reducing the city’s human settlements development grant (HSDG) funding by R180 million.
Yesterday, mayor Herman Mashaba visited the Riverside housing project in Diepsloot, saying construction of 1 485 RDP houses has been put on hold because of the drop in funding.
However, Human Settlements Department spokesperson Keith Khoza dismissed the claim, saying construction would go ahead.
Khoza accused the city of not having paid more than 80% of costs already involved in the start of the development. The province had subsequently paid the contractors directly, he said, giving the assurance that the project would continue.
“The city has not honoured its commitments. It has used money we provided for housing for other projects. We, as does the national government, (have) withdrawn money which has not been spent in the budget.”
The city, however, denied this, saying that the city manager would be writing to the National Treasury directorgeneral, in terms of section 44 of the Municipal Finance Management Act, to seek its urgent intervention in the dispute.
“Should these efforts fail, the city will consider other legal avenues, including the courts. The Riverside project is just one of the numerous housing developments which will now come to a grinding halt.
“This clearly shows the lies being peddled by the MEC of Human Settlements, Uhuru Moiloa, when he alleges that our money was reduced as a result of contractors not been appointed or paid,” Mashaba said.
“The decision to reduce Joburg’s funding comes on the back of the city spending 98% of its housing capital budget last year, and having contractors on the ground busy with construction. The decision is clearly irrational and informed by political considerations rather than the interests of our residents, who are suffering as a result of the 300 000 housing unit backlog,” he added.
“In a year in which South Africa is holding its national and provincial elections, it appears that the ANC-led Gauteng provincial government will do everything in its power to prevent the city from fulfilling its mandate to its residents.”
At the start of this financial year, the city was informed that its HSDG funding would be about R248m.
Mashaba said that the province had intentionally reduced the funding since the DA-led coalition took over in 2016.