Johannesburg MMC of Housing, Meshack van Wyk says work on the Riverside Housing Project near Diepsloot has stalled because the Gauteng Provincial Government reduced the City’s Human Settlements Development Grant (HSDG).

According to Van Wyk the Riverside Housing Project is one of many housing developments in Johannesburg that have been halted because of the government’s decision to cut the grant by R180 million.

Van Wyk notes that foundational work on the project has already been completed and developers are ready to come on site and continue the construction of the houses. This according to the MMC is a direct contradiction of the claims made by MEC of Human Settlements, Uhuru Moiloa, that the municipality’s money was reduced because contractors had not been appointed or paid.

Urgent intervention needed

“At the start of this financial year, the City was informed that that our HSDG funding would be in the region of R248 Million on the basis of the City’s Department of Housing’s business plans, which were adopted by Council and ultimately the Province.

“Late last year, without warning or reasons being provided, a provincial gazette indicated that the City’s HSDG funding from Provincial Government would only amount to R68 million – a reduction of R180 million,” he explains.

Van Wyk says that after exhausting efforts to resolve this dispute with the Department of Human Settlements and the Provincial Government, the City Manager will be writing to the Director-General of National Treasury, in terms of section 44 of the Municipal Finance Management Act, to seek their urgent intervention in this dispute.

Affected projects

Some of the housing developments that will be affected by the government’s decision to cut the City’s grant include:

• Elias Motsoaledi housing for Military Veterans (R2 288 661);
• Elias Motsoaledi’s RDP housing (R13 439 705);
• Fleurhof RDP housing development (R33 703 913);
• South Hills housing project (R67 053 913); and
• Riverside View development (R63 643 600).