Military Veterans Provision of Houses; Northern Cape Housing Backlog Eradication & Business Plan

Meeting report

Provision of housing for military veterans

The Committee convened a joint meeting with the Departments of Human Settlements and Defence and Military Veterans on the qualification criteria and the guidelines for the provision of houses to military veterans

Mr Joseph Leshabane, Deputy Director General (DDG), Department of Human Settlement (DHS) said that the military veterans programme derived its mandate from the Military Veterans Act 18 of 2011 and the Military Veterans Regulations gazette in 2013, both of which enjoined the Department of Military Veterans (DMV) and the DHS with the objective to provide decent housing to military veterans.

The programme not only aimed to improve the housing conditions of military veterans, but also to ensure security of tenure and shelter, among other objectives. The 2013 Military Veterans’ regulations outlined the qualification criteria for the housing benefit, and stipulated that the benefit should not have a total value exceeding R188 000, and that the veteran should not be employed by, or receive a pension from, the state. If the veteran was employed, they should not be earning an income of more than R125 000 per annum, not be a home owner or have previously received a house or a housing benefit from the state. If the veteran was in a spousal relationship, the same criteria still applied in order to prevent instances of double benefits. The individual should be a lawful resident of the state and legally competent to contract.

The minimum norms and standards of residential structures in the country were determined by the Minister of Human Settlements. Military veterans’ houses were 50 square meter dwellings, with ceilings and insulation, with tiled floors and plastered and painted walls, a well enabling kitchen, a solar water geyser with electrical installations, a car park and a perimeter fence around the property.

There was a memorandum of understanding between the DHS and the DMV to ensure synergy, coordination and management of their respective mandates. The DMV bore the responsibility of identifying eligible military veterans and also of topping up the finance between the R188 000 and the subsidy quantum. Annual departmental targets had also been agreed upon and planned according to the annual planning cycle. The DHS commissioned the development of the units, which were later given to the bona fide military veterans.

These arrangements ensured compliance with the fiscal arrangements in respect of the division of revenue and the Public Finance Management Act (PFMA), and also ensured that the qualification criteria were adhered to. On the socio-economic objectives, the veterans who sought and were able, may be provided with construction and related training. However, the participation of veterans in the training was dependent on their physical state and ability.

The DMV had entered into a service level agreement with the provincial Human Settlements Departments, who actualised the delivery and billed the DMV for the top-up funding. For the 2017/18 financial year, the provinces under their business plans had collectively planned to deliver 1 437 units to 1 421 identified beneficiaries across all provinces.

Although the provinces’ business plans would make provision for military veterans, after the approval of the business plans it had been noticed that in some instances, there were more identified beneficiaries than the number of units to be delivered. In 2017, there were 1 376 approved beneficiaries, with 111 units delivered in the first quarter.

Among the challenges faced in the first quarter, in five provinces -- the Free state, KwaZulu-Natal, Limpopo, Northern Cape and North-West Province -- there had been limited activity with no deliveries made. As a plausible option, the DHS could provide a Breaking New Ground (BNG) house to a veteran, with the proviso that the difference between the subsidy and the R188 000 would be provided to make improvements. Also, the approved veterans list of the DMV has subsequently been challenged upon implementation. There have also been cases where military veterans illegally occupied completed houses, which created conflict. There was also a lack of internal cohesion within the departments which, in some instances, had forced some beneficiaries to approach the departments individually.

Regarding the qualification of the R125 000 income bracket, there were prima facie cases which invited a review due to inflation. Some provinces, such as the Free State and Limpopo, have been cited for building structures outside the pre-defined standards. The absence of provincial steering committees affected the organisation and coordination at the provincial level in the delivery of the units.

These challenges had been noted, and the Minister had convened a meeting with veterans in May 2017 in order to clarify a number of issues, including overriding mechanisms to be implemented by the provinces’ steering committees, and the adherence to the agreed benefits. The BNG option was also discussed, and the top-up funding would be used to accommodate the costs of enhancing the units. The settling of veterans’ outstanding bonds below their value would be discussed with the banks, but about 70 bond cases had already been settled so far.

The veterans’ programme had to deliver quickly to veterans by reserving 10% for every project in order to accommodate the veterans in the area. As a further mitigating measure, the Minister had established a team of delivery facilitators to engage with the provinces so as to assist in the resolution of issues beyond the programmatic arrangements.

Mr Mbulelo Musi, Acting DDG, DMV, said that the Department was currently reviewing the Military Veterans Act 18 of 2011, and this was projected to be tabled in Parliament in the next session. The revision was aimed at addressing the challenges faced by the Department in implementing the housing provisions, since the current Act makes provision only for a military veteran, but did not provide for his/ her spouse or beneficiaries in case of his/her death. The regulations were also being reviewed from a policy and regulatory perspective. Section 5 of the Act and Regulations 14 and 15 were supposed to assist the DHS to manage the beneficiary database and ensure its integrity.

Regarding the statutory and non-statutory forces -- the non-statutory being the former SADF and the former liberation army veterans among others -- as an affirmative action, the non-statutory forces should be given priority in order to address the injustices of the past. However, there had been complaints that such preference was discriminatory. There needed to be effective stakeholder management in the provinces in line with the DMV’s objectives of delivery.       

Discussion

Mr L Khoarai (ANC) asked whether a military veteran who was now a Member of Parliament qualified for the housing benefit. He also asked about the measures put in place to cater for beneficiaries of already deceased veterans, and the number of the veterans in the various regions.

The Chairperson clarified that a Member of Parliament who earned less than R125 000 per annum would qualify.

Mr M Malatsi (DA) asked when the qualification threshold had been established, and whether it would be reviewed in order to respond to economic changes. Was there any progress report on the provision of construction training to the veterans? He also asked about the status of the policy of providing 30% of the housing construction contracts to military veterans, or companies owned by them

Mr K Sithole (IFP) asked how many beneficiaries had been identified by the DMV so far throughout the country, and how it would address the issue of young military veterans who were also seeking the same benefits. How would it handle the irregular housing standards in Limpopo and Free State to ensure equality in uniformity?

Mr H Mmemezi (ANC) asked for the timelines relating to the review of the legislation and the beneficiary database cleansing. There should be a absolute clarity in the provision relating to the affirmative action, to dispel any concerns regarding it. He asked why the performance in the provinces was declining and not improving.

Ms M Mokause (EFF) expressed her concern regarding the decline in performance in some of the provinces, as both the targets and deliveries were too low. The DMV should brief the Committee on the real challenges facing the delivery of houses to the veterans. The DMV should take on the responsibility of making veterans aware of any ongoing projects that they could benefit from, and not rely on Parliamentarians’ visits to the provinces. Some veterans were old or not in good health, so the DMV should clarify whether in such cases the training offered would be for the veterans or their beneficiaries.

Mr M Bara (DA) asked whether the bona fide military veterans had been identified, to ensure the integrity of the programme. He said that during implementation of the programme, there might be cases of unintended consequences regarding the misconceived perceptions of inequality and discrimination. The Department should find a way of implementing the programme in the light of these issues. The DMV should emphasise the Peoples Housing Process (PHP) and empower military veterans to build their own houses. The number of military veterans was fixed and should therefore be translated into a list that corresponded to the units that should be delivered.

Ms L Mnganga-Gcabashe (ANC) said that there was a need to fast track the annual performance plan (APP) since the deadline set for the target of 5 000 units had lapsed. The DMV should strive to allocate the houses to the veterans or their beneficiaries and dependents while they were still alive by prioritizing those who were frail and in ill health, or living with a disability. 

The Chairperson said that the Committee was displeased with the progress, and upon enquiry they had been informed that it was the DMV that had not been forthcoming with the beneficiaries’ list, to allow the DHS to commission the housing units. However, in the absence of the DMV at the meeting, the Committee could not get a response. The Committee therefore saw the need to have a joint meeting with the departments to identify who really was responsible for the delay. The Committee had been informed that in the 2014/15 financial year there were fewer than 5 000 veterans that needed to be settled. However, only a small number of veterans had been settled to date.

Mr Mbulelo Tshangana, Director General (DG), DHS, said that 1 421 was the number of non-statutory veterans identified by the DHS and the DMV, as of January 2017. The DHS could prioritise those projects where there were many beneficiaries within a 10km radius in BNG units, since the 50 square meter units were taking a longer time. The DHS would like to prioritise the non-statutory veterans, since they did not get any income from the state. On the uniformity of standards, it was illegal to use the Human Settlement’s Grant to build a unit of more than 50 square meters, and the Departments could not afford such units. Any such development, using the grant, would lead to a qualification by the Auditor-General. The Department could provide the Committee with a list of the trainees so far, and also for the 30% set aside for the veterans on each project. The identification of veterans was the responsibility of the DMV, whereas the allocation of the housing units was the responsibility of the DHS.

The PHP stood as a preferred project, since it offered opportunities to beneficiaries to participate in the construction as opposed to hiring a service provider.

Mr Musi said that the slow pace of delivery of the units could be attributed to the lack of adequate coordination between the two departments. The socio-economic empowerment of military veterans relied not only on empowering them through training, but also by getting them to participate in the various projects. Land availability had also been an issue, as well as contractors who did not share the DMV’s sense of urgency. This could be remedied by adopting punitive measures for under-performing contractors.

Northern Cape Department of Human Settlements: 2017/18 Business Plan

Mr Tshangana said that the DHS had met with the four provinces which had no metros for a performance review for the first quarter of the current financial year.

Mr Bafedile Shadrack, Head of Department (HOD), Northern Cape Department of Human Settlements, said that there were diverse views regarding the eradication of the existing housing backlog, with some stating that it may not be possible due to the continuous growth and needs of the human population, as evidenced by the census report. In 2011 it had been 39 604, but the 2016 census report indicated that there were more than 42 000.

The Department’s approach with regard to the integrated human settlements, was that projects that were currently overlapping would be integrated under the currently allocated base-line. All projects must be mixed use and mixed income, and integrated into the economic fabric of the towns and cities with consideration of the vastness of the Northern Cape, which posed a challenge in accessing building materials.

In order to ensure sustainable human settlements, the Department was striving to ensure that there were title deeds given and not just houses built. There should also be good quality workmanship for the houses, and contractors would be held accountable. There should be economic integration by bringing people closer to economic activities. The Department aimed for the provision of a viable infrastructure, with functional and innovative design, and easy and close access to amenities through an integrated development plan. This would in turn translate to affordable urban living, financial viability, effective urban management and environment sustainability.

In this financial year, the Department was operating with a budget of R402 million. However, there was a need to increase the budget to enable it to achieve its targets more effectively. There were about 11 000 housing units that had been completed, with 1 600 units planned to be completed, and 375 sites were ready for construction. However, due to budget constraints, the Department was in discussions with the Director General to find ways to adequately accommodate the project.

The Northern Cape province had many opportunities with economic potential, with a focus on mining,  manufacturing, agriculture and construction. The projected estimated increase of households was 25 000 in 2020, 52 000 in 2040, and 82 000 in 2050. Despite the province contributing strongly to South Africa’s mineral extraction, it still struggled with poverty and socio-economic inequalities. There had been a 2% increase the population, which had had an impact on the per capita allocation received by the Department.

There had been an improvement in the literacy level in the province through the adult basic education programme delivered by the Education Department. However, the low skills base posed a challenge for the growth of the province’s economy. The development of towns should be holistic and not piecemeal. The factors to be considered would be the movement capacity, the infrastructure-carrying capacity and ecological capacity to sustain human life, since there may be competition between the human settlements and animals. Also, connectivity to wider regions was important, as through a more advanced information technology (IT) system the Department could ensure easier access to services and thereby curb urbanisation by localising development.

Generating and sustaining bulk water and power requirements was important. It remains a challenge, however, and discussion were ongoing with the Minister of Water and Sanitation to ensure optimal utilisation in the various projects. There was a need to integrate innovative means and technologies for alternative housing. However, its success would be dependent on the sensitisation and response given by the local communities. This would help in marketing the viability of alternative technologies, as opposed to bricks and mortar, which were scarce. However, these alternative technologies had to comply with the Council for Scientific and Industrial Research (CSIR) and South African Bureau of Standards (SABS) to ensure a longer life span.

Affordability and access to the services provided was critical. High unemployment rates in the Northern Cape impacted on the ability of municipalities to generate revenue. This was reflected in tariffs to be implemented, since they had to be affordable for the local community.

Discussion

The Chairperson asked how the Department could have achieved its targets, yet it had not delivered on the housing for military veterans

Mr Tshangana said that the Department had looked into the figures of the first quarter, which indicated a better performance than the previous year’s first quarter.

Mr Shadrack said the Department had approved this year’s performance for the province in the first quarter of the business plan.

Mr Sithole expressed concern regarding the backlog in housing, since from 2011 there had been an increase in the backlog from 30 604 to 42 346 units in 2016. He asked about progress with the eradication of informal settlements.

Mr Malatsi, asked whether there had been any discussion or collaboration with the mining houses, since they too had an obligation to address the housing backlog.

Ms Mokause expressed concern over the growth of informal settlements and the continued backlog. The Committee should be able to see the progress on the ground, and not just on paper.

Mr Mmemezi was concerned that the presentation from the Department did not always reflect the true reality on the ground. The previous historical injustices of the past and socio-economic racial imbalances had not been reversed, especially in the townships where there were insufficient amenities.

Mr Bara commented that despite the progress noted, there was still abject poverty in the townships due to the slow pace of development, whereas there had been notable progress in the suburbs.

Mr Shadrack said the backlog stretched back to the previous years. However it had been catered for in the planning, and the national and provincial Human Settlements Departments had taken over the delivery of the houses from the municipalities. With regard to the issue concerning the amenities, there was a steering committee led by the DHS. The Department had been given a target of allocating 24 units to military veterans, but had managed to deliver 38 housing units which were ready for occupation. However, verification and validation of the beneficiaries’ list remained a challenge.

Ms Iketletso Mogodi, Chief Director, Human Settlements, Northern Cape, said that there had been improvements in the national upgrading support programme in some municipalities, but there had been slow development in the mining municipalities.

Mr Tshangana said that the Department had requested National Treasury for a budget increase of R4 million. However, this had been declined and it had been recommended that the province focus on its bulk infrastructure issues before they upscaled. However, an increase in the budget would allow the province to deal effectively with the backlog.

Adoption of minutes

The Chairperson went through the draft minutes dated 20 June 2017, and enquired whether they were a true reflection of the meeting.

The minutes were adopted without amendments.

The meeting was adjourned.