City of Tshwane not happy with RDP houses underspending claims

In January the City of Tshwane vehemently denied allegations that it spent below the R381 million it was awarded from the provincial government for housing developments, according to an IOL report. Dikgang Moila, MEC for Human Settlements criticized the city for failing to spend its Human Settlement Development Grant on the construction of RDP houses.

He said 2783 housing units were outstanding which athe municipality owed the department. The City had made a request for its grant to be used on other projects because it lacked capacity  to utilise it, he said. However, the mayoral spokesperson, Samkelo Mgobozi said the housing projects were administered by the provincial Department of Human Settlements and the City.

According to the report, the City had acted as implementing agent to erect houses on behalf of the provincial government.  “Upon allocation and gazetting of funds, a subsidy agreement is concluded between the City and the provincial department,” Mgobozi said. He added that funds finances were allocated and gazetted on a yearly basis to be appropriated on the City’s approved budget.

“In April 2018, Provincial Treasury issued a Provincial Gazette indicating an allocation of R78m to the City in respect of the Human Settlement Development Grant,” he said. The amount was budgeted for the development of low cost walk-up units in Fort West Ext 4 and 5 – a project carried out in phases. However, it’s believed that the provincial department brought down the funds via a revised gazette released in November 2018 to almost R23 million set for Hammanskraal Extension 10 units.

“Roll-over approval has since been applied for from the provincial department for Fort West Extension 4 and 5, Thorntree View, Mamelodi ERF 29355, Rama City, Hammanskraal West Extension 10 and Ga-Rankuwa Extension 10,” Mgobozi said. Adding that it was recently approved and subsidy agreements signed.