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