Mhlalingaphambili, ndiyakhumbula ukuba ukubekwa kukaMphathiswa kwesi sihlalo akuso kwaye kwabakho ingxakana ekhoyo, kuba kwakukho ukukhabana kwemidla kuba wayengumhlalingaphambili kuMvelaphanda. Kodwa ke ndiyabulela kuba wazibonakalisa ukuba ujonge ukusikhokela esi sigqeba.
Uthe ke esakubonakalisa ukuba uyafuna ukusebenza kule ndawo akwabikho mntu umnyanzelayo ukuba asuke kwesiya sihlalo, ngoko ke ndifuna ukubulela ngaloo nkxaso. Okwesibini, kulo mbutho wabantu, i-DA, ... [Kwahlekwa.] (Translation of isiXhosa paragraphs follows.)
[Mr A M FIGLAN: Chairperson, I remember that problems arose when the Minister was elected due to the conflict of interest because he was the executive chairperson of Mvelaphanda. I am thankful, though, because he proved that he wants to lead this executive.
When he showed his interest in being the Minister, he voluntarily resigned from his previous position and I am grateful for that support. Secondly, in this people's party, the DA ... [Laughter.]]
... that is called "fit for purpose". The Minister inherited a department marred by corruption, with housing delivery backlogs, shoddy workmanship on houses delivered, and severe underfunding - a problem that continues to grow exponentially. The Department of Human Settlements has said that in three years' time, R102 billion will be required to clear the housing backlog, a figure that will more than double to R253 billion in 2016. This is nearly 20 times the entire current annual housing budget. This is, however, not the only challenge faced by the Minister, as a significant portion of the entities under the Minister's custodianship are faced with problems.
The former CEO of the National Home Builders Registration Council, NHBRC, Phetola Makgathe, was suspended and had his contract of employment terminated for reasons that the Minister has yet to provide to the public. He was paid in excess of R1 million while under suspension and awarded a further R2,2 million before his disciplinary hearing was completed.
By not providing the reasons for the suspension of Mr Makgathe, the Minister continues to perpetuate the culture within the ANC where senior officials are suspended with full benefits and without reasons being provided. These officials then often remain on the payroll of their respective departments until their contract period expires. They resign before any action is taken against them, or settlement agreements are reached where they are paid huge sums of money for the remainder of their contracts. The platinum handshake that was offered to the suspended CEO of the bankrupt SABC comes to mind in this regard.
It is utterly disconcerting that R1,3 billion needs to be set aside for the repair of shoddily built RDP houses. This is money that could have been used to build 240 new RDP houses and help make inroads into the housing backlog of 2,1 million units.
Another issue of concern is the technically insolvent Thubelisha Homes. Although the institution was shut down at a cost of R241 million, the inefficiencies caused by the entity are still in existence. The issues facing the N2 Gateway project have still not been resolved. Of the 22 000 houses promised, only 821 have been built, a significant number of which still stand empty and are faced with structural problems.
A new scandal involving Thubelisha has emerged in KwaZulu-Natal. Only 140 homes were built in a project aiming for 3 300 low-cost houses in Ingwavuma. A draft report leaked to the Daily News paints a shocking picture of fraud, funds deposited into personal accounts and overpayments on the project amounting to about R150 million. The DA waits with bated breath to see that the Housing Development Agency, which replaces Thubelitsha Homes, will not carry over its inadequacies. Currently the HDA's main role extends only to the acquisition of land for the purpose of the construction of houses.
I'm going to talk about the entity that is the Rural Housing Loan Fund, RHLF, which is also facing a number of problems. The fund was established as a section 21 company, with the mandate of providing affordable credit to low-income rural households. Underfunding from the department has been identified by the entity as a hindrance towards achieving this goal. Furthermore, the interest charged by the RHLF for the repayment of loans is perhaps a little too high. Should this amount be lowered, it could very well result in fewer defaults.
Another issue that requires the Minister's attention is the pre-emptive clause contained in RDP beneficiary housing contracts. In 2002 the pre- emptive clause was included to prevent people from selling their houses within eight years of acquiring them. This clause, however, is like a toothless dog. The Minister needs to put measures in place that will enforce the clause.
Kodwa ke, enye into endiza kuyicela kuMphathiswa kukuba ize ingabavaleli abantu abathe bafumana amathuba okuphucula iindlela abahlala ngazo. Xa umntu efuna ukuthenga umzi kwenye indawo aze avumeleke kweso siqendu. (Translation of isiXhosa paragraph follows.)
[Having said that, one other thing that I would like the Minister to do is to involve people who have the opportunity to change their living conditions. When a person wants to buy a house in another place, he must be allowed to do so.]
The DA would like to encourage the Minister to continue implementing the People's Housing Project, PHP. Despite its many challenges, it encourages people to take part in the construction of their own houses. This programme has an element of sweat equity and empowerment and cultivates a sense of responsibility. [Time expired.] [Applause.]