Document Handed Out: Minister’s Media Briefing September 12, 2000 [See Appendix 1]
Minister’s MediaStatement September 21, 2000 [See Appendix 2]
The briefing by the Minister of Housing: Sanki Mthembi Mahanyele stated that the new policy proposal aims at providing preference to those who save towards home ownership as well as an emphasis on rental housing with the approval by Cabinet for the establishment of a National Rental Housing Development Entity that is a Presidential Job Summit programme.
The Minister stated that Cabinet has approved that the South African Housing Board be substituted by an advisory panel which will deal with all areas relating to housing and development. The provincial boards will be abolished and the MECs will also establish advisory panels. This move was prompted by a Department of Housing audit as they did not perform their advisory role and there was a lack of commitment demonstrated by poor attendance at board meetings. Secondly the boards deviated from their advisory function to an authoritative role as board members had vested interests which resulted approval of projects which would benefit their interests. Further there was a lack of clear lines of accountability either to the Provincial Executives or the communities that they are supposed to represent. There was little consultation between the housing board and the sectors they represented and a great portion of work which the boards had to perform ended up being done by departmental officials.
The Minister stated that through audit by the Department of Housing it has been discovered that RDP houses are being sold by their original owners at prices far cheaper than they worth. She mentioned syndicates who force people, who are in debt to them, to sell their houses to them and these houses are then resold at very high prices. That practice, the Minister stated, does not only undermine the mandate to house the nation but it also disturbs the market and worsens the homelessness situation. Therefore Cabinet has approved the enactment of a pre-emptive law to prevent the sale of RDP houses. If selling is necessary the MECs need to be involved and therefore any sale without the consent of the MECs would be an illegal exercise. Questions A Business Day journalist asked about those individuals who cannot save due to unemployment or low wages?
The Minister stated that they would continue to provide housing to those who had no savings but they intended to reward those involved in the saving scheme. The government wants to work with those who are working positively, not to say that it will not help the unemployed. The Minister added that the unemployed could also save even if it is a small saving.
A Citizen journalist asked what the range of production was.
The range, the Minister stated, was about 50 000 to 150 000 housing units per project.
Question from Business Day: Looking at the policy, the pre-emptive clause would prohibit the selling of subsidised homes on the open market, why?
The Ministry answered that evidence was presented to the ministry showing that some subsidised homes were forced sells. Individuals were forced by syndicates to sell their homes for less than they were worth. There were also some individuals who did not know the value of their homes. They were selling their homes for much less than its worth. In addition, selling the home on the open market would mean that the country was working backwards, since there were many waiting for homes. Individuals would be educated on how they should look at the value of their homes.
Question from Business Day: Is it not a heavy way to prevent syndicates, are you not using strong arm tactics by stopping people from using their assets?
The Minister disagreed that the government is preventing the use of assets. She stated that many people are not aware of how to sell their assets. After eight years owners have permission to sell their units. However prior to eight years, if they want to sell their homes, the government will have first priority to buy the home so that other families waiting for housing can move into the home.
Question: At what rate are the syndicates involved in buying homes?
Answer: The number of complaints is not very high but it is assumed that it may have happened more often but people may not have reported it.
Question from Business Day: Is it merely an idea or has work been done to encourage people to save?
Answer: It is an idea, registering would encourage people to save and looking at the applicants coming through, we would give preference to those who have saved. By educating people on the value of savings, people will begin to save for education and other crucial areas of their lives but in housing we will start now.
Question: What impact will age have on local housing?
Answer: We will not reduce the age; as you know those under the age of twenty-five cannot contract by law, but we must recognise homelessness. Orphans under the age of twenty -five can be given homes which are managed by others (over the age of twenty-five) We must however, review our age requirement that only adults and people over the age of twenty-five can contract.
Question: What is the national assessment of those without houses?
Answer: At the last census taken, there was a 2-3 million backlog.
Question from Business Day: Are private industries withdrawing from contributing?
Answer: Banks are not lending to women and certain racial groups. The Home Loan and Mortgage Disclosure Bill [now in Parliament] will monitor bank-lending practices. The department is looking at international views on banking practices.
Question: Do you think banks are not offering loans because there is no way to secure the loans as it is difficult to foreclose on defaulters?
Answer: There are ways to share the risk. Banks are not even raising the option of spreading risk. You want to package to spread the risk. We want the banks not to discriminate on the basis of race, gender, class and location.
Question: Regarding the record of understanding signed between the banks and the government, broadly speaking would you say that the initiative has been a failure?
Answer: No, a success because owners are able to negotiate new terms through the program. It allows nine months to default or secure a new home. Bonds can be transferred into rentals. In addition, we want to launch an educational program to teach how to borrow from banks. We are launching an educational program in conjunction with the University of Natal. There is not enough education on borrowing. We expect banks to participate and partially fund the program because it is in their benefit to educate borrowers.
Question: Are there any steps to improve the size and quality of homes?
Answer: We are not going to allow anything less than 30 square meters; but if there are issues of construction we will allow 27 square meters but we have to be given proper plans before we can reduce it to twenty seven square meters. There are some builders who have been allocated projects who have been able to give the department 40 square metres so there is some improvement.
Appendix 1: Date: 12/09/2000
Source: MINISTRY OF HOUSING
Title: MTHEMBI-MAHANYELE: RDP HOUSING, PARLIAMENTARY MEDIA BRIEFING, SEPTEMBER 2000
LAW TO CLAMP DOWN ON PEOPLE SELLING RDP HOUSING
The Cabinet has approved the amendment of the Housing Act of 1997 to include a pre-emptive clause outlawing the sale of RDP houses.
This follows a national audit conducted by the Minister of Housing as well as complaints forwarded to the Department noting that beneficiaries were selling RDP for the value much less that they were worth.
This was sometimes conducted by syndicates upon whom the poor were indebted. The houses were subsequently were sold for a much greater value than their purchase price, thus creating secondary market in the industry.
Our primary mandate is to house the nation. The sale of the RDP houses prevents us from fulfilling this mandate because it instead increases incidence of homelessness and encourages criminals to hold our people to ransom, said Housing Minister Sankie Mthembi-Mahanyele.
The pre-emptive clause will prevent the subsidy houses with the first option to buy offered to the provincial housing department and the MEC as signatory to the contract on behalf of the state.
We do acknowledge that the provision of housing should be supported by the creation of jobs to help support the unemployment.
Issued by the Ministry of Housing, 12 September 2000
Appendix 2 DEPARTMENT OF HOME AFFAIRS
REMARKS BY MINISTER MANGOSUTHU BUTHELEZI, MP
CAPE TOWN : SEPTEMBER 21, 2000
Members of the media and representatives of the Diplomatic Corps. It is my privilege to continue my long-standing dialogue with you on some of the salient issues currently being addressed in the Department of Home Affairs and, more importantly, to afford you the opportunity to raise questions regarding issues within the ambit of the activities of the Department which may be of interest to you.
As I indicated in my opening remarks to the Home Affairs budget debate on May 12 this year, it has become overtly evident that insufficient funding in every sphere of activity of my Department is seriously hampering the production of desired outputs. Moreover, projecting required future outputs against key indicators such as population and migratory trends suggests a continued widening of this gap, inevitably followed by a total incapacity to confront the resultant unmanageable imbalance. A significant disparity between actual departmental financial needs and the funds allocated for these purposes exists and for the 2000/2001 financial year the allocation has increased by a mere 0,85%. The National Treasury was approached to investigate the under-funding problem and the results of their investigation, which took place during June/July 2000, confirmed this. The Director-General of Home Affairs is in fact meeting with National Treasury today to address this issue.
We must, however, accept the reality of limited government resources, particularly financial resources. We have therefore begun a process of lateral thinking to see to what extent the present imbalances can be corrected through future joint ventures with the local government structures that are in the process of being established. This partnership may apply in respect of civic services, as we a re mindful that local government has a primary interest in interfacing with the population register and could assist in the registrations and data upkeep in respect of births, marriages and deaths. Over time, local government could be involved in the issuance of identity cards and other civic affairs functions, as happens in many countries around the world.
Following the new demarcation of municipalities, my Department has embarked on a process of re-evaluating the present location of its network of offices so as to endeavour to align this with the new municipal areas. This is obviously a long-term exercise but is part of the ongoing efforts to improve the Department's service delivery to the public of South Africa.
With the prospect of municipal elections later this year, my Department embarked on an Identity Document Campaign from 17 July to 21 August 2000 to ensure that prospective voters are in possession of bar-coded identity documents. The Identification Amendment Act will make the bar-coded identity document the only acceptable form of identification, pending the introduction of a smart card identity card in the near future. It is also the only acceptable document for voting purposes.
Office hours were extended for the full duration of the ID Campaign from 15.45 to 18.00 during week-days and all offices were open on Saturdays from 08.00 to 14.00. A total of 81 826 person-hours overtime were worked.
Mobile units were activated according to need and especially in remote rural areas. These areas were carefully identified beforehand and the statistical information provided by the IEC as well as community and political party requests, were taken into account. Countrywide a total of 368 626 kilometers were travelled by the mobile units. The public was informed of this through local and national media, through IEC, provincial, municipal, traditional as well as political structures.
The additional costs to the Department due to this effort were substantial. Pertaining to overtime worked this alone amounts to an estimated R2,1 million and the travelling costs of the mobile units is estimated at R232 234.
The Department is satisfied that it has done its utmost to ensure that all South Africans who are still not in possession of bar-coded IDs were afforded ample opportunity to apply for such documents. However, the reaction of the public was not overwhelming. A total of 393 271 applicants were received during the campaign of which only 82 699 (21,03%) were during the extended office hours. The additional costs to the Department for applications received during the extended office hours accrued to R25-23 per ID. Included in this total are 202 834 first time applications, thus consisting by and large of persons who would have lodged ID applications regardless of the ID Campaign.
Of concern is the number of uncollected IDs remaining countrywide in our offices. At the commencement of the campaign the figure was 170 850. It has since risen with an additional 12 346 to 183 196. An urgent appeal is therefore made to applicants to collect their IDs at the departmental office where they lodged their applications. I attended a meeting of the Regional Council in my own home district of Mahlabathini this month, together with provincial representatives of the IEC. I was very impressed by reports by individual traditional leaders on how they collect these unclaimed IDs from
the Home Affairs office in Ulundi, and then distribute them through Indunas to their owners.
It is clear that the vast majority of South Africans who have the intention to vote during the forthcoming local government elections are now in possession of, or have applied for, bar-coded IDs. IEC figures indicate that the number of eligible voters who have bar-coded IDs but are currently (31 August 2000) still unregistered, stands at 4 498 730. Consequently, the challenge now rests with the IEC to ensure that these eligible votes are registered and are entered on the voter's roll in order to participate in the coming elections. I was in Portugal last week-end when a registration campaign was mounted throughout the country. The reports I have had so far are not very encouraging concerning voters' responses.
A major challenge which my Department has embarked on is the Home Affairs National Identification System (HANIS). This project consists of the automation of the Department's manual fingerprint system and the issuing of a new, smart card identity card. It should however be seen as more than just a new identity card - it is in fact the advent of electronic governance in South Africa, as this card will eventually become the key to accessing government services.
The Department of Home Affairs has been working very closely with a number of other departments in the arena of smart cards and e-governance. A Request for Information (RFI) was published in this regard on July 21, 2000 with a closing date of August 31, 2000. The outcome of this RFI, requesting inputs from the information technology industry and other stakeholders, will be used to undertake a thorough investigation of the viability of implementing smart cards as the national identity card. The possible implementation of e-governance and e-commerce will be closely coupled to the envisaged identity card. This follows the international trend of many countries moving towards e-governance and accepting digital signatures for all forms of transactions.
Response to the RFI was overwhelming with more than 50 companies and interested parties submitting responses. The technical interdepartmental team is currently evaluating the responses to determine whether or not the technology is mature enough to meet our most stringent security and durability requirements. The technical interdepartmental team is also considering how the proposed identity card can be used to assist other departments in improving services to the citizens of the country, by using the identity card as a key enabler to various systems.
The new identity card will form part of the Home Affairs National Identification System (HANIS) which is currently being implemented by the Marpless Consortium. The HANIS will, through fingerprint technology, ensure that a person will only qualify for a single identity number. Once the system has ensured a person is not already registered with different personal particulars, it will initiate the personalisation of an identity card. The identity card will contain visual particulars together with encoded data of the person. This encoded data will be used by various systems to assist in the delivery of services once the person's identity has been successfully verified.
It is also envisaged that the card will eventually be used by a number of private organisations such as banks, insurance companies, medical aid schemes and many more, to combat fraud. The benefits of reduced fraud in these practices should result in substantially higher profits and therefore increased revenues to the State through taxes.
The current unprecedented flow of foreigners to South Africa requires suitable strategies and systems geared for the proper management of the situation. It has long become abundantly clear that our system of migration control can not meet present pressures and future challenges and requires to be fundamentally reformed. This reform must shape a new legislative system of admission criteria as well as a new structure capable of enforcing the law and developing detailed policies which over time meet the ever-changing needs of our society. These considerations emerged during a four-year process of policy formulation which led to the adoption of the White Paper on International Migration by Cabinet on March 31, 1999.
Flowing from the public comments received on the White Paper and through additional and extensive stages of consultation, the last of which was the international consultative Conference held on July 6 and 7, 2000 the Department tabled in Cabinet an Immigration Bill. This Bill was published in draft form on February 15, 2000 and has since been vastly improved upon. Even during Cabinet discussions, several of my colleagues requested specific amendments which have led to a significant re-drafting of the Bill which is presently still serving before Cabinet. The finalisation of this Bill will open a new process aimed at providing sustainable and satisfactory solutions to the many problems presently encountered by Government in managing migration control, and experienced by foreigners and nationals alike.
Many aspects of the Bill will need to be implemented through Regulations and administrative practices often requiring interdepartmental co-ordination. For this reason, once the Bill is finalised by Cabinet we intend to commence a second White Paper process of policy formulation to define the policy parameters which will shape the Regulations adopted in terms of the Bill, as well as the administrative practices. This process will once again involve representatives of civil society so that we may continue developing this reform in the same style of partnership between Government and civil society which has characterised my stewardship of this process
Pending the establishment of a new and more effective South African immigration service, the Department will be considering interim measures to address pressing problems in respect of transnational organised criminal involvement in trafficking of women and children and the smuggling of migrants, acceptability of the refugee travel documents of other countries, tighter control of persons making use of the transit facilities at international ports of entry to infiltrate the RSA, and measures to make it possible to outsource certain functions for which the Department lacks the resources.
The Refugee Act, 1998, which has far-reaching implications for the handling of refugees in South Africa, came into effect on April 1, 2000 and most of the teething problems in implementing this Act have now been sorted out.
In accordance with section 8 of the Act, five Refugee Reception Centres, namely Braamfontein, Cape Town, Durban, Port Elizabeth and Pretoria, have been designated. This brought to an end the system of lodging claims for asylum at any Home Affairs office, which had created enormous problems, as there had not been any systematic and co-ordinated control of claimants. Status Determination Officers were transferred from my Department's Head office to these offices in March 2000 to effect the smooth implementation of this Act. Since the implementation of the Refugees Act, a total of 2,657 new applications for asylum were received by the above-mentioned offices up to the end of July 2000, and of these applications, 1,034 have been approved.
Following an agreement entered into between the Department, the United Nations High Commissioner for Refugee Affairs and Lawyers for Human Rights, 40 persons with law qualifications were employed on a temporary basis at the Department of Home Affairs to clear the backlog of asylum applications which built up prior to the implementation of the Refugee Act, 1998. These persons have been employed as case-workers preparing and making recommendations for final decision by the Standing Committee on Refugee Affairs or the Refugees Appeal Board. Ten clerical staff have also been employed to provide administrative support to the Department.
It is envisaged that through this exercise the backlog will be eliminated in the shortest possible time, thus ensuring speedy attention to future asylum applications as required by the new Act.
With these few introductory remarks regarding current salient issues within the Department of Home Affairs, I now invite you to pose questions. I would appreciate if initially you limit your questions to matters pertaining to the Department of Home Affairs and, should time allow, questions on any other matter can be dealt with at the end.
I thank you.
Issued by GCIS on behalf of the Department of Home Affairs