The Democratic Alliance (DA) conducted a robust oversight through the Human Settlements Committee which revealed the deterioration in the performance of the Human Settlements portfolio in the ANC-led City of Johannesburg.
The housing portfolio is facing chronic underperformance, worsening financial pressures, delayed projects, infrastructure deterioration, poor revenue collection and other recurring governance failures.
The Third Quarter performance reports of both the Department of Human Settlements and the Johannesburg Social Housing Company (JOSHCO), expose JOSHCO’s continued financial decline. Despite maintaining occupancy levels of approximately 99%, the entity achieved only 53% of its performance targets during the third quarter and collected only 68% of the revenue billed. The result is a reported deficit of R391.5 million, worsening from the previous financial year, while net liabilities have increased to approximately R2.4 billion. Cash reserves have also declined dramatically, raising serious concerns on the long-term sustainability of the entity.
JOSCHO reports reveal deteriorating building conditions and inadequate maintenance that has contributed to growing tenant dissatisfaction, with some residents threatening to withhold rental payments due to poor living conditions.
The Human Settlement report reinforces concerns further stating that the department continues to miss critical targets. Numerous projects have experienced delays due to procurement failures, contractor payment delays and ongoing cash flow constraints within the City.
Particularly alarming is the department’s admission that the provision of Temporary Emergency Accommodation remains effectively unachievable under current conditions, despite an estimated backlog of approximately 12 000 individuals awaiting emergency housing assistance. This represents a significant failure in a City facing increasing housing demand and growing socio-economic pressures.
The DA demands urgent intervention from the Executive Mayor & MMC to stabilize the housing portfolio, address financial weaknesses, improve project execution and restore accountability.
Register to vote on 04 November for a DA led government that is transparent and accountable and will fight for more housing opportunities as well as improved living conditions.