[Chairperson, we are very pleased with what we have seen in Mpumalanga. They are so determined to achieve their goals, especially this programme called Outcome 8 Delivery Agreements. They have a project in Klarinet in the Nkangala District Municipality. That project includes the eradication of the informal settlements and rental stock. It also provides for those who cannot access government's housing subsidy because their salaries are high but they cannot access loans from the banks because their salaries are too low.
Secondly, we are pleased with the transformation programme of hostels into community residential units. This programme happened in Mpumalanga in such an encouraging manner. They showed much enthusiasm about the delivery of houses to the people and told themselves that they would build 5 000 housing units in this fiscal year of 2011-2012.
We have seen in their plans that they have included the co-operatives of housing. We are also pleased with the development programme of the farmers called the Comprehensive Rural Development Programme, which they showed enthusiasm for. We have seen the above-mentioned programme in Van Wyk Vlei Agrivillage and we commend the province of Mpumalanga.
Be that as it may, we are faced with challenges. The first challenge that we are faced with is to implement Chapter 10 (a) and (b) of the Act on housing delivery. What happens is that the beneficiaries of the houses sell these units when they buy new houses and that is a major challenge.
There is a memorandum that was signed with the People's Republic of China to build 400 houses but in that agreement the department experienced certain hiccups. These included labour-related conditions of the workers, tax compliancy with the SA Revenue Service and the failure of their employees to acquire working visas here.
We have also noticed that as of 2001, as we all know all municipalities were under the District Management Areas and were changed through the demarcation process in 2006. However Pilgrim's Rest couldn't be changed and is still under the DMA.
Another challenge we have noticed is the lack of co-operation among the departments in order for them to be able to carry this integrated programme forward. At the Graskop hostel, there is a block that unfortunately was not registered under the Department of Public Works' asset register by the ruling government. Another challenge we were faced with in Dipaliseng and Mkhondo Municipality, in Amsterdam, is the lack of a proper sewerage system.
In our recommendations, we ask the Minister to report on the memorandum with the People's Republic of China. Secondly, there is a block of flats where the wall of the toilets is falling down and that means the place is very dangerous. We commend our Minister for being able to provide people with temporary alternative dwellings while the wall of Simile was being renovated.
We also recommended that the Minister hold bilateral discussions with the Minister of the Department of Public Works about renovating the Graskop hostel because there are many hostel dwellers there. That would place it on the asset register of government so that the Department of Human Settlements could renovate it.
Another challenge we are faced with in Bushbuckridge is the bridges that were washed away during the flood disaster. We again recommend that the Minister of Human Settlements hold bilateral discussions with the Minister of Public Works about these important issues. Thank you.] There was no debate.