Follow-up: Relocation of illegal dwellers on railway reserve between Philippi & Langa: stakeholder engagement (with |Deputy Minister)

Meeting report

Chairperson’s opening remarks

The Chairperson said that this was a follow-up meeting concerning the relocation of illegal dwellers on the railway reserve between Philippi and Langa. This had rendered the Passenger Rail Agency of South Africa (PRASA) incapable of continuing its commuter services, and operations on the Central Line had been halted indefinitely.

Introductory remarks by Deputy Minister

Mr Lisa Mangcu, Deputy Minister of Transport, said that the Department would bring the Committee up to speed with what has happened so far, following the meeting of 29 August 2023.

The Group Chief Executive Officer (CEO) of PRASA would take the Committee through the presentation on the progress made, which is progress in the right direction.

Input by Deputy Mayor of Cape Town

Mr Eddie Andrews, Deputy Mayor of Cape Town, recalled that in the last engagement, the Chairperson made a request for the stakeholders to coordinate their responses and to make a consolidated presentation to the Committee. This has been noted, and the stakeholders will respond to any questions that the Members may have.

Joint presentation led by the Housing Development Agency (HDA) on the progress of the PRASA central line relocation programme.

Mr Ndumiso Mkhwanazi, Provincial Head: Western Cape, HDA, briefed the Committee on the key outcomes (i.e., the progress made since 29 August 2023), the challenges with funding, and the outcomes of the Stock Road Assessment.

Key outcomes:

• The implementation of Operation Bhekela is ongoing. This is a PRASA-led initiative supported by the key stakeholders of the implementation protocol. It seeks to ensure the immediate resumption of rail services, and the relocation of informal settlement dwellers.

• The assessment to establish suitable land for the temporal relocation of the affected informal settlement dwellers was completed on 13 September 2023. The land was found to be suitable, but critical mitigation measures must be implemented to ensure the safety of the households and compliance with regulations.

• The virement request made by the Department of Human Settlements (DHS) for the R50 million for land acquisition had not been supported by National Treasury. (PRASA should capitalise the costs).

• On 18 September 2023 an intergovernmental meeting was convened, following the request for the Department of Cooperative Governance and Traditional Affairs (COGTA) to appoint a mediator to assist with some of the challenges with the relocation programme.

Funding requirements:

Mr Mkhwanazi explained that the relocation programme has a two-pronged approach. One approach is Operation Bhekela. The second approach is the long-term relocation programme. Phase 1 of the relocation programme concerns the 1254 households at Langa. Phase 2 of the relocation programme concerns the 3941 households at Phillipi and Khayelitsha.

• The overall funding requirements for Phase 1 is about R117 million. The HDA provided funding for the acquisition of the land to expedite and unlock the programme, but this needs to be reimbursed. The statutory approval process for the development of the land is underway and is earmarked to conclude in March 2024. The onsite implementation phase will mainly be funded through the Informal Settlements Upgrading Grant (ISUG). The estimated date for the completion of the Phase 1 relocation is February 2025.

• Currently, there is no means to secure the immediate funding requirement of about R50 million for land acquisition to unlock Phase 2. The funding required is outside the standard government budgeting cycles. The earliest the funding could be availed is through the 2023/24 adjustment budget process.

(See Presentation)

Operation Bhekela Progress Report

Mr Hishaam Emeran, Group CEO, PRASA, confirmed that a contractor had been appointed on 8 September 2023 to undertake the work of Operation Bhekela. The contractor had officially taken site on 27 September 2023.

The contractor has finalised the designs and layout of the Stock Road area, as well as plans to regrade the land.

Mr Emeran took the Committee through the presentation which included photographs of the progress on site.

Site preparation and cleaning

• The contractor has established offices on site.

• As the site was affected by the heavy rains, the pooling is being addressed by pumping out water from affected areas.

• Over the next week to 10 days the site will be cleared, and the fencing erected.

• The first of the concrete basis will be delivered on-site once the site has been cleared and the fencing erected.

• Overall implementation of Operation Bhekela is targeted at 4 – 6 weeks.

• The City of Cape Town will provide basic services (i.e., water, ablution facilities, etc.)

Job employment opportunities

• 100 jobs will be created through Operation Bhekela. 60 Jobs have been allocated to Ward 88, and 40 jobs have been allocated to the Phillipi Community for the relocation of the Stock Road settlement.

Input by the Mayor of Cape Town

Mr Geordin Hill-Lewis, Mayor of Cape Town, informed the Committee that he was available to answer any questions. He said that the City of Cape Town was associated with the joint presentation on the progress of the PRASA central line relocation programme.

Discussion

Mr S Somyo (ANC) acknowledged the progress since the meeting on 29 August 2023. He sought assurance that there will be funding for the relocation programme to be realised in full, in terms of the permanent relocation of the affected informal settlement dwellers.

He said that it appeared as if the National Treasury insisted that PRASA should incur the costs, which implies that there is some form of undertaking. It was necessary that there be clarity on these matters.

The Chairperson asked the officials to respond to Mr Somyo’s question.

Deputy Minister Mangcu said that he was not aware of Mr Somyo’s comment about National Treasury. He requested that the Department of Transport provide an update on this matter at the next opportunity, as he did not want to mislead the Committee.

The Chairperson said that Mr Somyo’s comment about National Treasury had been mentioned in the meeting of 29 August 2023.

Adv James Mlawu, Director-General, Department of Transport, said that the Department of Transport did consult with the National Treasury after the meeting of 29 August 2023. He clarified that there was an agreement with National Treasury that PRASA would capitalise the land requirements.

Mr Somyo thanked the DG for providing clarity.

The Chairperson said that the Committee have noted the progress. He believed that the regular reporting back by the various stakeholders was helpful. The Committee would receive another report-back in early November 2023, to assess if the progress is ongoing.

Mr B Hadebe (ANC) agreed with the Chairperson. He said that it would also be helpful if the Committee conducted a site visit once the construction has started, to observe whether the efforts are yielding positive results.

Chairperson’s closing remarks

The Chairperson said that the Committee had a tight programme this term, but it will try to find time for a follow-up site visit. He thanked all the stakeholders in attendance.

He informed the Committee that its next meeting was to receive a report on unauthorised expenditure from Statistics South Africa, Department of Basic Education, Department of Social Development and the Independent Police Investigative Directorate.

On 18 October 2023, the Committee would receive a briefing from the Department of Public Works and Infrastructure on the prestige portfolio and parliamentary villages. These will be physical meetings in Parliament.

Following the previous day’s meeting on Eskom-related matters, he confirmed that the letter to Brigadier Jaap Burger had been sent. He observed that a media report said that the Committee “threatens to subpoena”. He clarified that this was not the modus operandi of the Committee. The Committee does not operate on the basis of threats. The Committee made a resolution that it would only issue the subpoena if Brigadier Burger did not agree to the invitation which has been sent to him to appear before the Committee.

The meeting was adjourned.